Seeing%20Past%20the%20Green:

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Seeing Past the Green

• Evaluating Total Rewards

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Agenda

• Outcomes
• Who is Hewitt Associates?
• Components of Employment Offers
• Total Rewards
• Questions and Answers

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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

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Hewitt Associates LLCGlobal 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

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

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Why will most experienced candidates choose one
employer over another?

• Most common response
• The People

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What do you mean by The People?
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Aspects of Corporate Culture

• Firm Values
• Alignment with personal values
• Values demonstrated in day to day
  operations

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Aspects of Corporate Culture

• Management Philosophy
• Communication
• Leadership style
• Envisioned future
• Open door philosophy

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Aspects of Corporate Culture

• Job Content/Career Growth
• Daily activities
• Training opportunities (internal/external)
• Career opportunities

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Aspects of Corporate Culture

• Total Rewards Philosophy
• Total pay
• Benefit package
• Work Environment
• Office environment
• Open communication
• Interactions with co-workers
• Work-life balance

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• Theres a lot more to
• The People
• than you see at first
• glance!

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• What do many college students think is the most
  important part of their offer package?

MONEY!!!
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Total Rewards Overview

• Total Pay is only a part of an organizations
  Total Rewards Program

Base Pay
Total Pay
Total Rewards
Variable Pay
Recognition
Work Environment
Benefits
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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

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Other Factor to Consider

• Benefits
• Work Environment

Base Pay
Variable Pay
Recognition
Work Environment
Benefits
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Question???

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

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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
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Overview of Health Care Plans

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Overview of Retirement Plans

• Eligibility
• Company match
• Vesting schedule
• Pension plans

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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
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Question??? How important is it to get an early
start on investing for retirement?

• Answer
• VERY!

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Heres WhyScenarios 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

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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

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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

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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.

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Review
Considerations when entertaining employment
offers
Base Pay
Total Pay
Total Rewards
Variable Pay
Recognition
Work Environment
Benefits
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QUESTIONS???
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