Agenda Creating a Unique Compelling and Differentiating Total

Agenda? Creating a Unique, Compelling and Differentiating Total Rewards Experience Presented by: Kat Drum April 4, 2016 Prepared by Aon Hewitt Consumer Experience | Communication Proprietary & Confidential 1 1

What Do You Say At Your Company? So what space are you guys in? So how are we going to position ourselves? Let’s hammer this out Ok, so let’s ideate… Who did their UI? Is that actionable? How can we repurpose that? That dovetails perfectly into my idea! I’m worried about the knowns Are those baked in? I think that is sideways energy It’s pretty much the Uber of food trucks Look we need more wiggle room! Nuh uh…. that's NOT mission critical I’m worried about the unknowns Consumer Experience | Communication Proprietary & Confidential 2

§ § Introductions Consumer Experience Overview Employee Perspective and our POV Total Rewards Suggestions – Research – Online – Print – Segmentation – Experience Mapping § Questions Aon Hewitt | Consulting | Consumer Experience Proprietary & Confidential | Premier TRS Discussion 3

Helped dozens of organizations improve employee savings rates, investment diversification, and better risk/return balance Moved 24% of a global manufacturer’s employees from high health risk to low risk in one year Helped 12% of Fortune 50 companies improve operations, communication, and engagement through innovative experiences 4

Aon Hewitt | Consulting | Consumer Experience Proprietary & Confidential | Premier TRS Discussion 5

Creating an Integrated Experience Map We strategically activate the Consumer Experience ecosystem, delivering seamless, meaningful interactions at every touchpoint. Aon Hewitt | Consulting | Consumer Experience Proprietary & Confidential | Premier TRS Discussion 6

Marketing Overload Aon Hewitt | Consulting | Consumer Experience Proprietary & Confidential | Premier TRS Discussion 7

Agenda? Workforce Mindset Results Prepared by Aon Hewitt Consumer Experience | Communication Aon Hewitt | Consulting | Consumer Experience Proprietary & Confidential | Premier TRS Discussion 8 8

When you understand what really matters to employees, you can shape a work experience that drives higher levels of engagement and business performance. Aon Hewitt | Consulting | Consumer Experience Proprietary & Confidential | Premier TRS Discussion 9

Workforce Mindset Study What do I really think about my total rewards? What makes an employer stand out from the rest? Aon Hewitt | Consulting | Consumer Experience Proprietary & Confidential | Premier TRS Discussion How and from whom do I want to receive communication? 10

Study Profile 40% Boomer + 49% Gen Xers 51% Millennials 30% 51% Hourly 49% Salaried 2, 539 Employees Gender Generation Job Category Public Sector and Healthcare | Manufacturing and Energy | Retail | Financial Services | Business Services | Utilities and Telecommunications | Media, Entertainment, Leisure Aon Hewitt | Consulting | Consumer Experience Proprietary & Confidential | Premier TRS Discussion 11

Three Key Areas of Focus What Differentiates Fun, flexibility and innovation are viewed as differentiators employer What Rewards Pay and benefits (health and retirement) are equally important What Communicates Open dialogue boosts employee engagement Top 3 Differentiators 1. Fun place to work 2. Flexible work environment 3. Innovation Aon Hewitt | Consulting | Consumer Experience Proprietary & Confidential | Premier TRS Discussion Engaged employees are 5 x more likely to view leaders as open and honest 12 3. 5 x more likely to feel encouraged to share ideas and opinions

Employee Communication Preferences Channels and sources from which I prefer to receive this communication topic (#1 and #2 preferences) #1 How From Whom Channel Source #2 #1 #2 Company-provided benefits HR Corp Comm Work-life balance HR Manager Personal health and wellness HR Corp Comm Personal finances/financial planning HR Corp Comm Changes in the organization Leader Corp Comm Financial performance of the organization Corp Comm Leader Source: 2014 Aon Hewitt Workforce Mindset Study– U. S. Aon Hewitt | Consulting | Consumer Experience Proprietary & Confidential | Premier TRS Discussion 13

Snapshot of Four Themes Aon Hewitt | Consulting | Consumer Experience Proprietary & Confidential | Premier TRS Discussion 14

Employee Perspective—Where Improvements are Needed Employees see room for improvement in pay and benefits, recognition, and communication. Qualities that I would most like to see improved to increase overall engagement or satisfaction 24% Provides good pay and benefits 42% Recognizes strong achievement or performance 8% 27% 10% Communicates completely and honestly 24% Provides good career and/or development opportunities 7% 23% 7% Has a flexible work environment 22% Has a strong management and leadership team 7% 19% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Ranked 1 Aon Hewitt | Consulting | Consumer Experience Proprietary & Confidential | Premier TRS Discussion Ranked 1, 2, 3 15

Where Employees Want More Communication Source: 2015 Aon Hewitt Workforce Mindset Study Aon Hewitt | Consulting | Consumer Experience Proprietary & Confidential | Premier TRS Discussion 16

How Perceptions of Total Rewards Influence Engagement Employees who view their total rewards as competitive are significantly more engaged. Aon Hewitt | Consulting | Consumer Experience Proprietary & Confidential | Premier TRS Discussion 17

Total Reward Communication Ideas

Understanding Employee Opinions About Total Rewards Sometimes employee perceptions don’t match the reality of everything you offer. Some of the ways we measure employee perceptions are through: § Surveys § Focus groups § Perception Index™ : We assess perceptions of Total Rewards and related communication. When combined with Benefit Index results, you will learn the “Value Gap” between what you spend and the delivered value, as perceived by employees. Aon Hewitt | Consulting | Consumer Experience Proprietary & Confidential | Premier TRS Discussion 19

Communicating Total Rewards A personalized Total Rewards solution can: § Help employees recognize the full array of rewards you provide § Customize information for specific employee groups or locations § Target specialized compensation and benefits information for executives or other unique audiences 90% of employees surveyed said our personalized Total Rewards statements were “important” or “the most important” communication they receive from their employer. Aon Hewitt | Consulting | Consumer Experience Proprietary & Confidential | Premier TRS Discussion 20

Upoint—Portal for Delivering Online Total Rewards Search Persistent message center Easy access to Your Total Rewards Promotions to build awareness Aon Hewitt | Consulting | Consumer Experience Proprietary & Confidential | Premier TRS Discussion Responsive to different devices and sizes Deep links to transactions and content; personalized based on eligibility, participation, age, location, etc. 21

Next Generation Total Rewards Print Statements Next Generation personalized communication techniques can be applied to any topic or content area—to create a more hyper-relevant, immersive and break-through communication experience. Aon Hewitt | Consulting | Consumer Experience Proprietary & Confidential | Premier TRS Discussion 22

Samples of Total Rewards Statements―Custom Approach Aon Hewitt | Consulting | Consumer Experience Proprietary & Confidential | Premier TRS Discussion 23

Include Complete Compensation Give employees a complete picture of the components of compensation, the philosophy behind the program, and what people can do to maximize their earning potential. You can show the values have increased over time. Aon Hewitt | Consulting | Consumer Experience Proprietary & Confidential | Premier TRS Discussion 24

Samples of Total Rewards Statements―Retirement Readiness With the fluctuation in the stock market and the desire for many companies to discontinue traditional pension plans, it’s become more important than ever for employees to take greater control of their future financial security. A lot of clients are using their Total Rewards statements to help employees understand the importance of their retirement benefits from the company, but also show them where they may have risks and help them understand the tools are resources they have to better prepare. Aon Hewitt | Consulting | Consumer Experience Proprietary & Confidential | Premier TRS Discussion 25

Perception Index™ is a quick and easy employee survey that enables you to: Leverage Employee Value Perceptions to identify areas of higher and lower value to inform your cost management (and resource allocation) strategies Drive Winning Behaviors by knowing how many employees are Excelling in taking care of their health and planning for retirement, and how many are Performing, Trying, or Failing 1 1 Perceived value 2 2 Relative importance 3 Communication effectiveness 3 4 4 Behavioral assessment PI Provides Four Types of “Customer” Intelligence Aon Hewitt | Consulting | Consumer Experience Proprietary & Confidential | Premier TRS Discussion Focus Communication by auditing media vehicles for usage and effectiveness Identify Value Gaps When paired with Benefit Index®, Aon Hewitt compares the perceived and marketplace competitiveness, leading to better designed benefit plans and more effective marketing efforts 26

Agenda? Segmentation Prepared by Aon Hewitt Consumer Experience | Communication Aon Hewitt | Consulting | Consumer Experience Proprietary & Confidential | Premier TRS Discussion 27 27

The Mind. Base Segments Expressive “You only live once” At Capacity “Time is of the essence” Connected “Live like you mean it” Rock Steady “Do the right thing” Driven “Nothing ventured, nothing gained” Down to Earth “Ease on down the road” Aon Hewitt | Consulting | Consumer Experience Proprietary & Confidential | Premier TRS Discussion Sophisticated “Sense and sensibility” Measure Twice “An ounce of prevention” Devoted “Home is where the heart is” 28

Sample of Mind. Base Segments—Employees Mind. Base Segment Sample Co. Employee Population % of Sample Co. Employee Population % U. S. Employed Population Sample Co. Index vs. U. S. Employed Population* Expressive 448 10. 4% 8. 7% 120 Connected 702 16. 3% 13. 9% 117 Driven 688 16. 0% 16. 2% 98 At Capacity 750 17. 4% 15. 7% 111 Rock Steady 889 20. 7% 18. 3% 113 Down to Earth 258 6. 0% 8. 5% 70 Sophisticated 518 12. 0% 16. 3% 74 Measure Twice 24 0. 6% 1. 1% 51 Devoted 27 0. 6% 1. 2% 52 4, 304 100. 0% Total Employees § Over one-third (38%) of the Sample Company employee population is Rock Steady and At Capacity segments. The Connected and Driven segments are the next two largest in size containing almost another third of the population. The Mind. Base segments are best used in efforts related to broader work behavior and employment experience. § The Sample Company employees differ from the U. S. employed population in five of the nine segments. * Bold index figures denote where the Sample Company population is significantly different from the comparison group. Aon Hewitt | Consulting | Consumer Experience Proprietary & Confidential | Premier TRS Discussion 29

CASE STUDY Reimagining Swift The Strategic Approach Segmenting messages to drive engagement Results: § Value Independence (34%): Feature employee health “wake -up call” stories, loss framing and monetary penalties § Not Right Now (20%): Target in mailers and postcards to homes to reach females/spouses § Get Through the Day (18%): Feature employee stories that focus on handholding resources, small steps/big changes The Outcome Built momentum by focusing on bite-sized, in-the-moment actions Aon Hewitt | Consulting | Consumer Experience Proprietary & Confidential | Premier TRS Discussion 30

Experience Mapping

Refining the Experience From a Different Perspective Experience Mapping is a collaborative, interactive process that examines the journey a representative persona follows through an experience or a specific event. Aon Hewitt | Consulting | Consumer Experience Proprietary & Confidential | Premier TRS Discussion 32

Enriching the Consumer Experience Strategy A communication plan is an illustration of collateral, activities, and dates Experience mapping places the individual’s experience at the center Beginning with our solution and deliverables defines our expectation of the experience Beginning with employees enables us to see the experience through the lens of their expectations Traditional communication or project planning focuses on ideal-state desired actions Experience mapping extends to real actions, wants, needs, reactions and pain points Aon Hewitt | Consulting | Consumer Experience Proprietary & Confidential | Premier TRS Discussion 33

Agenda? 2020 Prepared by Aon Hewitt Consumer Experience | Communication Aon Hewitt | Consulting | Consumer Experience Proprietary & Confidential | Premier TRS Discussion 34 34

Changes to Total Rewards Strategy for 2020 Workforce Which of the following potential changes will you consider as part of your total rewards strategy for the 2020 workforce? More opportunities and support to connect health and wealth (e. g. , financial wellness programs) 75% Enhanced consumer experience with guidance to help navigate toward better personalized choices 73% More flexibility for an employee to make trade-offs between benefits and compensation 44% Expanded definition of "benefits" to include life building skills 26% Ability to trade total rewards dollars for access to workplace technology and/or flexible working arrangements 20% Increased flexibility to retain certain benefits, such as access to health insurance, during extended leaves of absence for nonmedical reasons 0% 19% 10% 20% 30% 40% 50% (N=699) Aon Hewitt | Consulting | Consumer Experience Proprietary & Confidential | Premier TRS Discussion 35 60% 70% 80%

Defining the Employee Experience Workforce 2020 Benefits/Considerations Aon Hewitt | Consulting | Consumer Experience Proprietary & Confidential | Premier TRS Discussion Work/ Life Blending Health Challenges Total Rewards Flexibility Personalized Experience 36

Q&A Aon Hewitt | Consulting | Consumer Experience Proprietary & Confidential | Premier TRS Discussion 37

Thank You! Kat Drum kat. drum@aonhewitt. com