2. To protect the confidential and proprietary information included in this material, it may not be disclosed or provided to any third parties without the approval of your organization and Hewitt Associates LLC. Seeing Past the Green: Evaluating Total Rewards

3. Agenda Outcomes Who is Hewitt Associates? Components of Employment Offers —Total Rewards Questions and Answers

4. Outcomes to create a better understanding regarding the many components of Total Rewards provide you with a checklist of “factors to consider” when evaluating employment opportunities share a tool for evaluating employment offers

5. Hewitt Associates LLC Global Human Resources Management Consulting and Benefits Administration Firm Serve over 4.3 million employees 2,400 clients (more than 2/3 of the Fortune 500) Largest Benefits Outsourcing firm the U.S. Over 13,000 associates in 80 offices worldwide Annual revenue of 1.5 billion dollars

6. Our Vision “To be the most influential advisor and dominant service provider in the people business - and as a result, the best organizations and people want to work with us.”

7. Why will most experienced candidates choose one employer over another? Most common response: The People

9. Aspects of Corporate Culture Firm Values — Alignment with personal values — Values demonstrated in day to day operations

10. Aspects of Corporate Culture Management Philosophy — Communication — Leadership style — Envisioned future — Open door philosophy

11. Aspects of Corporate Culture Job Content/Career Growth — Daily activities — Training opportunities (internal/external) — Career opportunities

12. Aspects of Corporate Culture Total Rewards Philosophy — Total pay — Benefit package — Work Environment – Office environment – Open communication – Interactions with co-workers – Work-life balance

13. There’s a lot more to “The People” than you see at first glance!

14. What do many college students think is the most important part of their offer package? MONEY!!!

15. Total Rewards Overview Total Pay is only a part of an organization’s Total Rewards Program Base Pay Benefits Variable Pay Recognition Work Environment Total Pay Total Rewards

16. Components of Total Pay Base Pay Variable Pay —Commissions —Sign-on Bonuses —Performance Bonuses —Shift-Differentials —On-Call Pay —Profit Sharing —Equity Vehicles (options, grants, appreciation rights) Recognition

17. Other Factor to Consider Benefits Work Environment Base Pay Variable Pay Recognition Work Environment Benefits

18. Question??? On average, how much do organizations pay for their benefits packages? Answer: between 30% and 40% of total pay costs per employee!

19. Benefits to Consider Health Care Retirement Plans Dental and Vision Care Vacation Days/Holidays Disability Insurance Employee Assistance Plans Tuition Reimbursement Flextime Dependent Life Insurance Flexible Spending Accts. Employee Life Insurance Wellness Programs Child Care Assistance Adoption Assistance Low-Interest/No-Interest Loans Free/Subsidized Meal Service

20. Overview of Health Care Plans

21. Overview of Retirement Plans Eligibility Company match Vesting schedule Pension plans

22. Comparing Retirement Plans COMPANY A Base salary $30,000 401(k) (10% contribution) 3000 Match (5% match ) 1500 Tax (27% of taxable income) (7290) Take home pay $19,710 401(k) Your contribution 3000 Company match 1500 Total 401(k)$4500 COMPANY B Base salary $30,000 401(k) (not eligible) 0 Match (no match) 0 Tax (27% of taxable income) (8100) Take home pay $21,900 401(k) Your contribution 0 Company match 0 Total 401(k) $0

23. Question??? How important is it to get an early start on investing for retirement? Answer: VERY!

24. Here’s Why Scenarios: Jack & Jill - both 21 year old college graduates, earning $30,000 Jack $50 (2%) per month invested in his 401(k) w/100% match joins the Peace Corp 8 years later and stops investing Jill marries college sweetheart, starts a family right away $0 per month invested in her 401(k) until age 29, when she invests $100 per month for the next 36 years w/ no match

25. Question??? Who has the most money saved when they retire at age 65 (assuming a 10% return on investment)? Answer: JACK! Jack saved a total of $9,600 ($4,800 + $4,800 company match) from age 21 to 29 and his investment grew to $531,468 Jill saved a total of $43,200 (no company match) from age 29 to 65 and her investment grew to $424,182

26. What is Work Environment? Corporate Philosophies and Culture Management and Communication Style Performance Management Philosophies and Processes Physical Location/Facilities Employee Input/Feedback Work-Life Balance

27. How Important is Work Environment? When asked, most employees site the following engagement factors as being most important: 1. Work Activities - “I like what I do and I have the opportunity to do what I am best at.” 2. Opportunity - “I know what opportunities are available and I have the chance to develop through increased challenges and responsibilities.” 3. Total Rewards - “I am fairly paid for the contribution I make and compared with other companies, I am competitively paid.”

30. Review Considerations when entertaining employment offers: Base Pay Benefits Variable Pay Recognition Work Environment Total Pay Total Rewards

31. To protect the confidential and proprietary information included in this material, it may not be disclosed or provided to any third parties without the approval of your organization and Hewitt Associates LLC. QUESTIONS???