Us Cons Total Rewards Survey

Total Rewards
Practices Survey
Detailed Response
Analysis
Fall 2017
Table of Contents
Building “Total Relationships” With Your Employees 3
Survey Background 4
Demographics of Survey Participants 5
Executive Summary - Total Rewards Philosophies 6
Executive Summary – Health and Welfare Benefits 7
Executive Summary – Retirement Benefits 8
Executive Summary – Voluntary Benefits 9
Executive Summary – Compensation Practices 10
Survey Exhibits on Total Rewards Philosophies 11
Survey Exhibits on Benefit Practices 19
Copyright © 2017 Deloitte Development LLC. All rights reserved. 2

Building “Total Relationships” with your employees
For many years, employers have designed compensation and benefit programs in an independent ‘one-size-fits-all’ approach.
More recently, employers are recognizing the need to design and communicate the value of the “total package” of pay and
benefits. But what comes next?
A new generation is entering the workforce, bringing a very different set of expectations and values. Not only is a competitive
package of pay and benefits “table stakes,” workforce preferences are leading to unique benefits offering customization and
portability. And, workers want to feel that their employer cares for them in new ways that include their wellbeing, career
advancement, development, and recognition.
In order to attract and retain the top talent of the next generation of workers, employers will need to offer a Simply
Irresistible employment experience. And rewards programs will be a crucial element to building that experience.
This survey report provides a benchmarking baseline to help you understand how your programs compare to other employers.
The next step is to consider what employees value and to optimize your programs accordingly, ultimately creating an
experience that stands apart as a differentiator in attracting and retaining the high talent workers of tomorrow.
Discover Define Deliver

Survey Background
Deloitte Consulting LLP and Empsight International LLC teamed up to conduct a Total Rewards Practices survey in the fall of
2016. The survey was designed to help organizations understand how their Total Rewards programs compare to others by
collecting data with respect to total rewards philosophies, compensation and benefit practices and future strategies. In addition,
the survey examined innovation and trends in areas such as wellness, private exchange adoption, pay practices and implications
relating to movement to the “gig” economy.
Nearly 200 organizations responded to the survey. However, responses to every question were not required for survey submission, so
response rates vary in the report that follows. Throughout this report, we focus on the metrics collected and current issues and trends
faced by employers today.
We hope you find this information helpful as you plan for the future and design your programs to offer employees a simply irresistible
employment experience. If you have any questions, don’t hesitate to reach out to members of the survey team at Deloitte Consulting LLP and
Empsight International LLC.
Deloitte Consulting LLP: Empsight International LLC:
Jason Flynn Patricia Ryan Yon-Loon Chen Jeremy Feinstein

Principal Specialist Leader Senior Manager Managing Director
Deloitte Consulting LLP Deloitte Consulting LLP Deloitte Consulting LLP Empsight International, LLC
jasflynn@deloitte.com patryan@deloitte.com yonlchen@deloitte.com jeremy.feinstein@empsight.com
Andrew Coccia Kelley Lewis

Senior Manager Specialist Master
Deloitte Consulting LLP Deloitte Consulting LLP
acoccia@deloitte.com kellelewis@deloitte.com
The statements in this report reflect our analysis of survey respondents and are not intended to reflect facts or opinions of any other entities. All survey data
and statistics referenced and presented, as well as the representations made and opinions expressed, unless specifically described otherwise, pertain only to
the participating organizations and their responses to the survey.
Demographics of Survey Participants
A wide range of industries are represented in the survey Exhibit 1. Please indicate your organizational industry.
with Consumer & Industrial Products (24%)
representing the top participating industry [Exhibit 1]. Percent of
Industry Category
Total
Respondents from organizations with 5,000 or more full- Consumer & Industrial Products 24%
time employees represented the largest survey segment at
Energy & Resources 6%
36%, followed closely by smaller organizations.
Financial Services 14%
Organizations of different sizes were fairly evenly
Life Sciences & Health Care 9%
represented [Exhibit 2].
Professional Services 13%
Public Sector, Education & Not-for-Profit 9%
Taft-Hartley Plan 1%
Technology, Media & Telecommunications 12%
Other 12%
Exhibit 2. How many U.S.-based full-time

employees do you have?
Number of Full-time
Percent of Total
Employees
5,000 and above 36%
500-4,999 33%
Fewer than 500 31%

Executive Summary – Total Rewards Philosophies
Most organizations are not “fully integrating” their compensation and benefits programs…yet…but
they are moving in this direction.
Only around one in five surveyed organizations In our experience, those taking a fully integrated approach
currently employs a fully-integrated Total have greater resources to innovate and often have a business
Rewards program approach. However, improved imperative to adapt more quickly to marketplace change. They
integration is on the corporate agenda. Of the are also less likely to be unionized, allowing them to adopt
remaining organizations, three out of four are new ways of doing things more readily.
interested in increasing the integration of their
Based on our survey:
compensation and benefits programs for the
future. • 36% of Financial Services organizations are fully integrated
• 25% of Energy & Resources organizations are fully integrated

The drive toward integration directly correlates
with the size of company, with larger • Only 9% of Life Science & Health Care organizations are fully
organizations more likely to follow a fully integrated
integrated philosophy (about 24% of large
Integration Defined
organizations indicated that Total Rewards is fully
integrated vs. 16% of small organizations).
Fully Integrated —
The survey results also indicate that the desire to All rewards programs are benchmarked and
designed holistically.
integrate Total Rewards varies significantly by
industry. For example, organizations in the
financial services industry are far more likely to Partially Integrated —
fully integrate their total rewards programs than Compensation and some rewards programs are
those in the life science & healthcare industry. benchmarked and designed together.
Non-Integrated —
Compensation and benefits are benchmarked
and designed separately.

Executive Summary – Health and Welfare Benefits
Benefits continue to be a key component of the recruitment and retention strategy.
Per employee health costs remain high, with the average Participants are seeking opportunities to control medical
gross(1) cost of around $11,400 per year in 2016 and was claim costs through wellness programs and telemedicine, but
expected to grow by around 4.3% in 2017. This cost varies by appear to have been less willing to make fundamental shifts in
industry and appears to decrease slightly as employer size benefit philosophies by adopting high performance or “narrow”
increases. On average, employers are requiring employees to networks or private exchanges.
share in 22.4% of this cost through payroll deductions.
Cost Controls
Many employers did see their healthcare costs rise when the Adopted Not Adopted
required ACA mandates were implemented. However, as time
Telemedicine - 76% of Narrow Networks - 86% of
goes on, the challenges related to complying with mandated respondents report offering, companies use the standard
ACA requirements lessen. or planning to offer vendor network
While moderate challenges still exist, fewer than one in four Wellness - 91% of Private Exchanges - 82% of
respondents offer some type companies are not currently
employers reported that compliance with the Shared
of wellness benefit considering offering
Responsibility rule, planning for the Cadillac Tax, and 30-hour
rule requirements was “very challenging.”
Dental, Life, and Short/Long Term Disability plans
We believe that, having dealt with these mandates for a few continue to be offered as part of the core health and
years now, most employers have tailored solutions to meet welfare program, consistent with prior practices:
their needs or have plans in place to mitigate issues such as
the Cadillac Tax, should they come to pass. • Dental PPOs prevail with 86% of respondents reporting that
PPOs carry the greatest enrollment of dental subscribers
• Life insurance sees little change, with 66% providing life
insurance plans offering a multiple of salary (vs. a flat
amount)
• The majority of the organizations offer STD plans at 60% -
662/3% income replacement and LTD at 60%
(1) Gross spend is defined as employer plus employee costs for coverage, excluding cost
sharing at the point of service
Executive Summary – Retirement Benefits
Survey results indicate there is opportunity to increase employee education around saving for retirement.
It’s no surprise that defined contribution plans are While most Defined Benefit plan sponsors do not anticipate
the most prevalent source of retirement benefits making any changes to their retirement plan in the next 1-
offered by the survey respondents. Interestingly, our 2 years, the majority of those that are considering
changes anticipate taking actions to transfer risk out
survey shows that one-third of the respondents continue
of the plan. These actions include offering lump sum
to offer both defined benefit and defined contribution windows and purchasing annuities, reducing the overall size
plans. Almost 70% indicate they have no changes of the plan obligations and reducing administrative
planned for these programs in the near term. expenses and burdens.
Whether it is due to a lack of planning tools, knowledge or Of the few employers that offer retiree medical benefits
today, 40% allow new hires to grow into eligibility for
other reasons, our survey reflects that the majority of
retiree medical plans. The survey also indicates that the
employees in a defined contribution plan may not be majority of companies offering retiree medical
saving enough for retirement. benefits are maintaining the status quo on benefits
and eligibility. There is some indication that a significant
Approximately one-fourth of employees are minority of employers have implemented, or are
contributing less than 5% of their pay and 44% are considering implementing, some changes to their retiree
health benefits to reduce costs and coverage.
contributing 6% or less. Our results show that
employers have the opportunity to continue to drive home
the key messages concerning the importance of saving for
retirement and determining what may be keeping
employees from saving more.

Executive Summary – Voluntary Benefits
Voluntary benefits can both fill a gap and In addition to voluntary benefits, other employee
complement the employer’s core benefit incentives or company provided perquisites ("perks") are
offerings. For example, voluntary benefits can becoming increasingly popular ways to attract and retain
provide a financial safety net to help employees employees. More companies in today’s world are going casual
with expenses that may not be covered by their in their workplace attire. Our survey shows that employee
core medical plan, e.g., cancer or critical illness. discounts for programs or services, casual dress days and
They may also make new and interesting benefits flexible work schedules are the most popular perks. Such
available to employees at a group negotiated rate. benefits serve to motivate and satisfy employees while typically
being low cost or no cost to the employer.
According to our survey, 47% offer voluntary
benefits to their employees. The top three most
popular offerings are employee purchase/
discount programs, critical illness, and group
legal which are offered by more than half of the
survey respondents.

Executive Summary – Compensation Practices
According to our survey, the primary basis for salary

structure differentiation was geography or a combination
of geography and industry. The median number of salary
structures used by companies was 3.0.
Merit pay
The overall median merit increase forecast for 2017 was 3.0%
across all employee levels. The majority of employees (67%) The most frequently used operational components to
are eligible for short term incentives and the average award determine short term incentives include: operational
was 10.3% as a percent of base salary. performance quality, productivity targets, customer
satisfaction and service, while the most frequently used
Bonuses financial components to determine short term incentives
include: operating income, net income, and EBITDA.
Almost 40% of survey respondents indicated that bonus
payments were the same in 2016 as in 2015, while 22% Long term incentives
indicated that they were higher, and 17% indicated they were
lower. The most frequently used Long term incentive (LTI) vehicle
across all levels was Restricted Stock Units (RSUs), while
Short term incentive payouts senior management also tends to receive performance
shares and stock options. The median LTI target as a
The most frequently reported maximum short term incentive percent of base for senior management was 25%.
payouts (STIP) as a percent of target range was 200 - 249%,
which was reported by 31% of the survey respondents. Shift differentials
Additionally, 80% of companies budgeted between 0% and
14.99% of total annual budget/spending for short term More than half (53%) of the survey respondents pay shift
incentives. differentials. Payment as a dollar amount is twice as
prevalent as payment as a percentage. Only 9% of the
Approximately 45% of surveyed organizations tie individual organizations pay shift differentials as both a dollar amount
performance ratings to the individual component of short term and a percentage.
incentives, while 38% tie individual performance to pre-defined
individual objectives.

Survey Exhibits on Total Rewards Philosophies

Total Rewards Philosophies
Integration of Total Rewards Strategy
Respondents were almost equally split in having a rewards program that is either partially integrated or not integrated at
all [Exhibit 3]. Only a small percentage of respondents have moved to a holistic approach in the design of their rewards
program. As may be expected, the level of integration varies by industry [Exhibit 4].
Exhibit 3. How integrated are your

compensation and benefit strategies as part
of an overall Total Rewards Strategy?
Exhibit 4. The approach to having an integrated

Total Rewards strategy varies by industry

Integration appears to be a direct correlation with the size of the organization; large organizations are slightly more
likely to adopt a fully integrated Total Rewards approach [Exhibit 5].
Exhibit 5. Level of Integration by Company Size (# of employees)

Nearly three out of four organizations (74%) surveyed indicated that they planned to move to a fully integrated or more
integrated program philosophy [Exhibit 6].
Exhibit 6. Are there future plans to move to a more integrated philosophy if your program is
not yet fully integrated?

Position to Market
Organizations were asked to describe their desired position relative to the market for four categories: base pay, total cash
compensation, benefits, and total compensation & benefits. The majority of the survey respondents desire to be at the
Market Median for all four categories. A minority of the respondents have chosen to be significantly above market for any of
the four categories. Interestingly, a third of respondents wish to be above or significantly above market with
respect to benefits.
Exhibit 7. What is your company’s desired position relative to the market for base pay, total cash
compensation, benefits, and total compensation & benefits?

Position to Market
When comparing an employer’s desired position with respect to pay vs. the market, the size of the employer does
matter. Over one-third of small employers desire to pay above the market for total compensation and benefits, while
only 13% of large employers and 29% of midsized employers choose this approach.
Exhibit 8. Level of desire to pay above the market for total compensation and benefits by company size (# of
employees)

Actual vs. Philosophy
Participants were asked to indicate if their actual practice on base salary, total cash compensation, benefits, and total
compensation & benefits was at, above, or below their desired market position [Exhibit 9].
Exhibit 9. Level of desire to pay above the market for total compensation and benefits by company size (# of
employees)

Other Considerations
Most organizations surveyed do not plan to enhance their value proposition for contract or contingent workers [Exhibit 11].
Exhibit 10. Are you taking steps to enhance the employer value proposition of contract, contingent, or other
“off balance-sheet” workers other than through higher pay?
We are working with staffing agencies to ensure a

10%
minimum level of benefits are available to workers
We offer access to paid time off or other rewards

18%
allowable under applicable regulations
We are not planning to make changes at this time 72%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Level of response

Survey Exhibits on Benefit Practices

Medical Plans
Per Employee Gross Costs and Employee Cost Share
Exhibit 11. What is your expected 2016 per Number of Full-time Employees Total Cost
employee medical and Rx gross cost 5,000 and above $10,879
(employee + company share) for enrolled 500 to 4,999 $11,211
employees?
Fewer than 500 $12,009
Number of respondents: 33
Average for all respondents = $11,389
Median for all respondents = $10,752
Exhibit 12. On average, what percent of Employee Share of Total

Percent of Respondents
total medical/Rx costs do employees share Medical/ Rx Costs
in terms of payroll contributions (e.g. 0% - 15% 23%
20%)? 16% - 20% 37%
21% - 30% 23%
31% - 40% 9%
>40% 8%
Average for all respondents = 22.4%
Median for all respondents = 20%

Medical Plans continued
Anticipated 2017 Cost Growth After Plan Design Changes
Exhibit 13. After design changes (if Per Employee Costs Increase for
applicable) and other strategies are 2017
implemented, how much do you Decrease Cost 11%
anticipate your per employee costs will
No Cost Increase 33%
change in 2017 vs. 2016?
1% – 5% Increase 22%
5% - 10% Increase 17%
Increase of 10% or more 17%
Median for all respondents = 2.5%

Private Exchanges are Beginning to Catch On
Exhibit 14. Please indicate your position Percent of

Response
as it relates to Private Exchanges for Total
your Active Employee Population. Not considering a Private Exchange at this time 82%
In the process of studying the feasibility of a Private
7%
Exchange
Currently participating in a Private Exchange for active
7%
employees
Very likely to (or decided) to implement a Private Exchange
4%
in 2017 or 2018

Moderate Challenges Still Exist with ACA Compliance
Exhibit 15. Please indicate the level

of challenge involved in addressing Average Level of Challenge
the following provisions of the 3.5 3.2
Affordable Care Act. (1=not 3.0 2.8
2.7
challenging, 5=very challenging)
2.5 2.1
2.0
1.5
1.0
0.5
0.0
Meeting the 2016 Information 2020 High Value Administering the
95% threshold Reporting ("Cadillac") tax 30-hour
under Shared Requirements requirement / look
Responsibility (e.g. 1095 forms) back rules
Rules

Telemedicine and Non-Standard Networks
Exhibit 16. Do you offer a Response Percent of Total

telemedicine benefit?
Yes, through our health plan 37%
Yes, using a stand-alone provider or providers 14%
No, but we are considering adding this in 2017 or

25%
2018
No, and we are not considering adding this benefit at
24%
this time
Response Percent of Total

Exhibit 17. Do you use any non-
standard networks? No, we use the standard vendor network 86%
Yes, a narrow network offered by the health plan 14%
Yes, a narrow network that was customized for us 0%

Wellness Programs
Over Half of Employers Surveyed Offer Wellness Programs and Incentives
Exhibit 18. Do you offer wellness- Percent of

Response
related programs? Total
Yes, with penalties for not participating 4%
Yes, with incentives for participating 58%
Yes, but no incentives or penalties apply 29%
No, we do not offer wellness programs 9%
Exhibit 19. If yes, what is the maximum

annual incentive amount an employee Employee Incentive Percent of Total
with single coverage can earn if they
participate in all wellness programs? <$250 30%
$250-$500 30%
$500-$1,000 28%
$1,000-$2,000 9%
over $2,000 3%
Average
Number of respondents: 33 $497

Medical Plans
Tobacco and Spousal Surcharges are Becoming More Prevalent
Exhibit 20. Do you have a

Percent with a
penalty/surcharge for tobacco Number of Full-time Employees
Surcharge/Penalty
use?
5,000 and above 54%
500-4,999 27%
Fewer than 500 8%
All employers, regardless of size 30%
Average
charge: $788
Exhibit 21. Do you have surcharge

for working spouses covered on your Percentage with a
Number of Full-time Employees
Surcharge
plan but eligible for other coverage?
5,000 and above 39%

500-4,999 20%
Fewer than 500 12%
All employers, regardless of size 24%
Number of respondents: 89 Average
charge: $1,200

Dental Plans
Types of Dental Plans Offered – Most Employers Offer Dental PPO Plans
Exhibit 22. What type of dental plan do you offer?
86.1%
% of Respondents
7.6%
2.5% 3.8%
Indemnity plan Mixed Model Dental HMO Dental PPO

(no network) (can change
between
HMO/PPO each
month)

Dental Plans continued
Cost and Payroll Contributions
Exhibit 23. What is your expected Number of Full-time Employees Total cost
2016 per employee dental gross cost
(employee + company share) for 5,000 and above $1,085
enrolled employees? 500 to 4,999 $788
Fewer than 500 $889
Average for all respondents = $900
Median for all respondents = $940
Exhibit 24. On average, what percent Employee Share of Total Dental

of total dental costs do employees Costs
share in terms of payroll 0% 20%
contributions?
1% - 19% 10%
20%-25% 23%
26%-50% 30%
over 50% 17%
Median for all respondents = 22.5%

Life Insurance
Basic Life and Accidental Death & Dismemberment
Exhibit 25. Please provide the Plan Details Percent of Total

amount of basic (employer-paid) 2 x annual earnings, max 35%
life insurance offered for your
1 x annual earnings, max 30%
most prevalent class of employees.
Flat dollar amount 17%
No basic life insurance offered 6%
Other 12%
Exhibit 26. Please provide your Plan Details Premium Costs

basic life / AD&D premium rate per
$1,000 of coverage. Basic Life average rate $0.107
Range of rates by respondents $0.032 - $0.30
Basic AD&D $0.022

Range of rates by respondents $0.012 - $0.05

Disability Insurance
Short Term and Long Term Disability Plans
Exhibit 27. Please provide the

Percentage Income Replacement Percent of Total
following Short Term Disability
40% - 50% 12%
Plan features.
60% 24%
66.67% 28%
70% - 75% 20%
100% 16%
Average of all respondents = 69%
Median of all respondents = 67%
Elimination Period Percent of Total

90 days 33%
180 days 64%
Exhibit 28. Please provide the Other 3%
following Long Term Disability
Plan features. Percentage Income Replacement Percent of Total
40% 5%
50% 14%
60% 61%
67% 17%
70% 3%
Employer Premium Subsidy Percent of Total

0% 19%
50% 8%
60% 4%
100% 69%
Retirement Benefits
Types of Retirement Plans Offered
Exhibit 29. What type(s) of retirement plans

Plan Percent of Respondents
do you offer today?
Defined Benefit Only 6%
Defined Contribution Only 62%
Both Defined Benefit and Defined

32%
Contribution
Number of respondents: 65e

Retirement Benefits continued
Defined Benefit Plans
Exhibit 30. What is the primary Percent of

Plan
type of Defined Benefit Pension Respondents
Plan that you offer today? Final Average Pay Plan 44%
Hybrid Plan (e.g. Cash Balance, Pension
32%
Equity, Stable Value, etc.)
Career Average Pay Plan 8%
Other 16%
Number of respondents: 25e
Exhibit 31. What changes do you Percent of

Change
anticipate making to the Defined Respondents
Benefit plan in the next 1-2 years? Transfer risk out of plan (e.g., lump sum
23%
window, purchasing annuities, etc.)
Change investment strategy 4%
Close plan to new entrants 8%
Freeze benefit accruals 4%
Terminate pension plan 4%
No changes anticipated 69%
Other 15%
Defined Contribution Plans
Exhibit 32. Which features apply to Percent of

Feature
the Defined Contribution (DC) Respondents
plan? Please check all that apply. Employer Match 90%
Non-Elective Employer Contributions 41%
Money Purchase Plan 2%
Exhibit 33. What is the average Percent of

Average Employee Deferral Rate
employee deferral rate? (%) Respondents
0%-4.99% 26%
5%-5.99% 18%
6%-6.99% 18%
7%-7.99% 16%
8%-8.99% 9%
>9% 13%

Defined Contribution Plans
Exhibit 34. What is the most common Percent of

Formula
employer match formula? For example, Respondents
“50% of the first 6% up to a maximum 50% of first 6% 14%
of 3% of pay."
50% of first 4% 5%
Other 81%
Percent of
Exhibit 35. What changes do you Change
Respondents
anticipate making to the Defined
No changes anticipated 85%
Contribution Plan in the near future?
Redesign plan to increase benefits 6%
Other 9%

Retiree Medical Plan Designs
Exhibit 36. Is your Pre-65 Retiree Percent of

Plan Status
Medical Plan open or closed? Respondents
Open 59%
Closed 41%
Exhibit 37. Is your Post-65 Retiree Percent of

Plan Status
Medical Plan open or closed? Respondents
Open 60%
Closed 40%

Post-65 Retiree Medical Cost Control Actions
Exhibit 38. Are you considering (or Considering

have you implemented) any of the Plan Design Not Already
in the Next
following alternatives for your Considerations Considering Implemented
1-2 Years
Post-65 Retiree Medical Plan?
Modifying contribution
60% 20% 20%
policies
Modifying plan designs 50% 31% 19%
Modifying eligibility for
56% 19% 25%
participation
Eliminating coverage for
94% 6% 0%
current retirees
Eliminating coverage for
74% 13% 13%
future retirees
Private Exchanges (to
facilitate enrollment in 52% 24% 24%
Medicare plans)
Adopting Group Medicare
56% 31% 13%
Advantage Plans
Implementing Employer
Group Waiver Plan (EGWP) 69% 25% 6%
for Rx

Vacation and Sick Time Programs
Percentile
Exhibit 39. If your organization offers
a traditional structure for time off, Average 25th 50th 75th
enter the total number of vacation New Hire 12 10 10 15
days an employee is eligible for each 1-3 years 13 10 10 15
calendar year. 5 years 16 15 15 20
10 years 20 15 20 22
20 years 23 20 25 25
25+ years 24 22 25 25
Exhibit 40. Indicate the number of Percent of

Days
sick days that full-time employees Respondents
receive annually. 0 15%
3 3%
5 15%
6 23%
9 3%
10+ 20%
Unlimited 3%
Other 18%

Paid Time Off
Exhibit 41. If your organization offers PTO instead of (or in addition to) a traditional vacation/sick program,
enter the total number of days an employee is eligible for each calendar year.
Salaried (percentile) Hourly (percentile)
Average 25th 50th 75th Average 25th 50th 75th
0-1 Years 16 14 16 19 17 13 15 20
1-3 Years 17 15 17 19 18 15 17 21
5 Years 21 19 21 25 22 20 21 26
10 Years 24 20 24 29 25 22 25 29
20 Years 27 23 28 31 29 27 29 32
25 Years 27 21 28 32 30 26 30 34
Exhibit 42. Are holidays included in the PTO Percent of

time above or are they separate? Respondents
Separate 84%
Included in PTO Days 16%

Paid Holidays
Exhibit 43. How many paid holidays does Percent of

Days
Respondents
your organization offer annually?
6 12%
7 6%
8 18%
9 22%
10 18%
11 12%
12+ 12%
Exhibit 44. How many floating/personal Percent of

Days
days does your organization offer Respondents
annually? 0 41%
1 15%
2 18%
3 8%
4 8%
5 3%
6+ 3%
Other 4%

Severance
Exhibit 45. How are severance benefits paid Percent of

Days
at your organization? Respondents
Number of weeks per year of service
up to a tier, then flat amount 5%
thereafter
Formula is based on job level 25%
One month per year of service 5%
One week per year of service 20%
Two weeks per year of service 13%
Three weeks per year of service 2%
No formula 10%
Other 20%
Exhibit 46. What is the maximum number Percent of

Days
of weeks that can be accrued by an Respondents
individual? Other or no formal severance plan 36%
less than 12 3%
13 2%
26 10%
39 3%
52 23%
78 3%
104 2%
No maximum 18%

Other Voluntary Benefits
Exhibit 47. Do you make any of Percent of

Benefit
the following benefits available Respondents
for purchase on a fully 529 Plans 15%
voluntary basis?
Cancer Insurance 21%
Critical Illness Insurance 52%
Employee Purchase / Discount Programs 58%
Financial Counseling 27%
Group Auto / Home 40%
Group Legal 52%
High Limit Disability 8%
Hospital Indemnity 17%
Identity Theft Protection 27%
Long Term Care 23%
Permanent Life Insurance 17%
Personal Accident Insurance 27%
Pet Insurance 38%
Umbrella Insurance 2%

Perquisites
Exhibit 48. Besides annual incentive Percent of

Benefit
plans, what other employee incentives, Respondents
or company provided perquisites
Casual dress days 78%
("perks"), does your company offer?
Cell phone allowance 47%
Certification or licensure pay / reimbursement 26%
Company car / car allowance 28%
Employee discounts on products and services 83%
Financial planning benefit 39%
Flexible work schedule 81%
On-site day care 11%
On-site fitness 58%
Paid parking 36%
Subsidized meals 22%
Tuition reimbursement* 36%
Working from home 69%
* The average annual tuition reimbursement, based on survey responses, is $4,000 per year.

Compensation Practices
Salary Structure Design
Exhibit 49. How many salary structures Number of Structures Percent of Total
do you use in your organization?
Not applicable 36%
1 19%
2 11%
3 9%
4-5 8%
6-10 9%
>10 8%
Average number of salary structures employed = 5.8
Median number of salary structures = 3.0
Exhibit 50. What is the primary basis for

Differentiator Percent of Total
salary structure differentiation?
Geography 14%
Combination of Geography & Industry 17%
Key Functions 16%
We do not use salary structures 21%
Critical Workforce Segment 4%
Business Unit 10%
Other 18%

Compensation Practices continued
2017 Salary Structure Forecast and 2017 Merit Forecast
Exhibit 51. What is your forecasted

Number of Average Median
salary structure increase for 2017, if Bonus
Respondents increase Increase
known? (Excludes Zeros)
Hourly 29 2.65% 3.00%
Salaried 38 3.07% 3.00%
Exhibit 52. What is your Merit & Total Increase Forecast for 2017, if known? (Excludes Zeros)
25th 75th
Survey Element # of Cos. Mean Median
Percentile Percentile
Overall Forecasted Merit Increase Budget for
2017 44 2.92% 2.90% 3.00% 3.00%
Executive 28 2.87% 2.86% 3.00% 3.00%
Management 33 2.90% 2.90% 3.00% 3.00%
Professionals 30 2.89% 2.93% 3.00% 3.00%
Support / Non-Exempt 30 2.89% 2.93% 3.00% 3.00%
25th 75th
Survey Element # of Cos. Mean Median
Forecasted Total Salary Budget Increase for
2017 30 3.39% 3.00% 3.05% 3.88%
Executive 21 3.14% 3.00% 3.00% 3.50%
Management 21 3.15% 3.00% 3.00% 3.50%
Professionals 21 3.15% 3.00% 3.00% 3.50%
Support / Non-Exempt 21 3.13% 3.00% 3.00% 3.50%

Short Term Incentives
Exhibit 53. What percent of employees are eligible for Short Term Incentives (STI) overall and by level?
STI Received Average Award as

STI Eligible %
Award % % of Base Pay
Overall 67.3% 62.7% 10.3%
Executives 77.2% 70.6% 37.6%
Management 75.9% 68.7% 14.9%
Professionals 63.2% 58.9% 8.2%
Support / Non-Exempt 48.2% 41.3% 3.8%

Exhibit 54. How did bonus payouts in 2016 Percent of

Bonus
(for 2015 performance) compare to the Respondents
prior year (2015 bonuses for 2014
Higher 22%
performance) for the average incumbent
who received a bonus? Lower 17%
About The Same 39%
Did not payout in 2016 12%
Do not have short term incentive program 10%

Exhibit 55. Please summarize the Support /

weighting of short term incentive Metric Executives Management Professionals Non-
payouts by individual, company, and Exempt
business unit performance by level. Individual
37% 42% 43% 37%
Performance
Company
63% 63% 60% 51%
Performance
Business Unit
26% 19% 13% 17%
Performance
Exhibit 56. What are your company's

Incentive Percent of Respondents
maximum short term incentive payouts
(STIP) as a percent of target? 300% and above 4%
250 - 300% 2%
200 - 249% 31%
175 - 199% 6%
150 - 174% 15%
125 - 149% 17%
110 - 124% 6%
100 - 109% 19%
Exhibit 57. What is your organization's Percent of

Incentive
approximate total annual budget/spending Respondents
for short term incentives, expressed as a
0%-4.99% 33%
percentage of operating income? (Operating
income is earnings before interest and taxes, 5%-9.99% 14%
or EBIT. Nonprofits should use net surplus, or
revenue minus expenses.) 10%-14.99% 33%
15%-19.99% 4%
20%-24.99% 8%
>25% 8%

Exhibit 58. How is the Individual Percent of

Component
component of the Short Term Incentive Respondents
determined? Tied to Individual Performance Rating 39%
Tied to Pre-defined Individual Objectives 32%
Other 6%
Not Applicable 23%
Exhibit 59. How are Operational Percent of

Component
Components of the incentive Respondents
determined? Operational Performance 42%
Quality 30%
Productivity Target 25%
Customer Satisfaction 25%
Service 20%
Safety Performance 17%
Unit or Department 16%
Other 6%
Employee Engagement 5%
Brand Health 3%

Exhibit 60. How are Financial Components Percent of

Incentive
of the incentive determined? Respondents
Cash Flow 14%
Earnings Per Share (EPS) 11%
Earnings before Interest and taxes (EBIT) 11%
EBITDA 17%
Net Income 17%
Operating Income 26%
Return on Capital 3%
Revenue 34%
Other 20%
Not Applicable 14%

Long Term Incentives and Targets
Exhibit 61. What types of long term incentives (LTI) does your organization award by level?
Senior Middle
LTI Exempt Non-Exempt
Management Management
Not Eligible for LTI 28.3% 51.7% 73.3% 73.3%

Stock Options 21.7% 8.3% 5.0% 3.3%
Stock Appreciation Rights (SARs) 3.3% 3.3% 1.7% 0.0%
Restricted Stock Units (RSUs) 30.0% 26.7% 11.7% 6.7%
Employee Stock Ownership Plan (ESOP) 10.0% 10.0% 8.3% 6.7%
Long term Cash 13.3% 6.7% 1.7% 1.7%
Performance Shares 28.3% 10.0% 0.0% 0.0%
Other 8.3% 3.3% 0.0% 0.0%
Exhibit 62. What were your Long Term Incentive Targets for 2016 (as a percent of base salary) by level?
25th 75th
Level # of Cos. Mean Median
Senior Management 25 37.9% 0.0% 25.0% 55.0%
Middle Management 25 12.5% 0.0% 0.0% 20.0%
Exempt 21 1.3% 0.0% 0.0% 0.0%
Non-Exempt 21 0.3% 0.0% 0.0% 0.0%

Shift Differentials
Exhibit 63. Does your company pay shift Percent of

Response
differentials? Total
No - We don't pay Shift Differentials 47%
Yes - In Dollar Amounts 29%
Yes - In Percents 15%
Yes - Both Dollar Amounts & In Percents 9%
Exhibit 64. Which job levels are eligible for Percent of

Job level
Shift Differentials (also known as Shift Total
Premiums)?
Non-Exempt 97%
Exempt Supervisors 18%
Non-Exempt Supervisors 38%
Other 9%
Note: for all survey questions related to shift differentials, respondents were asked to use the following definition of shifts:
1st Shift = day shift (e.g., 7 am to 3 pm)

2nd Shift = evening shift (e.g., 3 pm to 11 pm)
3rd Shift = night shift (e.g., 11 pm to 7 am)
If 12 hour shifts are in place, respondents were asked to complete 1 st shift as first 12-hour shift and 2nd shift as second
twelve hour shift and leave 3rd shift blank.

Shift Differentials
Exhibit 65. Shift Differential Practices
Practice Yes No
1) Require a minimum number of hours to be worked within the shift zone for the time
to be eligible for shift premium payment? (Ex: must work at least 2 hours in the 44% 56%
defined shift zone)
2) Do you pay shift premium for early arrival and late departure time (hours outside of
39% 61%
the defined shift zone)?
3) Do you require the employee to arrive ‘at or after’ a certain time within the zone to
45% 55%
be eligible for shift premium?
4) Do you pay more than one premium concurrently - such as paying shift, plus
55% 45%
weekend, plus holiday shift during a single shift span of time%
5) Do you pay shift premium on non-worked time such as Paid Time Off, Shift
23% 77%
Guarantee (fill time), holiday (non-worked benefit time)?
6) Do you limit total premium to a multiple of base pay such as no more than 2x or 3x
10% 90%
base pay?

About Deloitte
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL
and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. Please see
www.deloitte.com/about for a detailed description of DTTL and its member firms. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP
and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.
Copyright © 2017 Deloitte Development LLC. All rights reserved.

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Total Rewards

Building “Total Relationships” With Your Employees 3

Demographics of Survey Participants 5

Executive Summary - Total Rewards Philosophies 6

Executive Summary – Health and Welfare Benefits 7

Executive Summary – Retirement Benefits 8

Executive Summary – Voluntary Benefits 9

Executive Summary – Compensation Practices 10

Survey Exhibits on Total Rewards Philosophies 11

Survey Exhibits on Benefit Practices 19

Copyright © 2017 Deloitte Development LLC. All rights reserved. 2

Discover Define Deliver

Copyright © 2017 Deloitte Development LLC. All rights reserved. 3

Deloitte Consulting LLP: Empsight International LLC:

Jason Flynn Patricia Ryan Yon-Loon Chen Jeremy Feinstein

Andrew Coccia Kelley Lewis

Exhibit 2. How many U.S.-based full-time

Copyright © 2017 Deloitte Development LLC. All rights reserved. 5

• 25% of Energy & Resources organizations are fully integrated

Copyright © 2017 Deloitte Development LLC. All rights reserved. 6

Benefits continue to be a key component of the recruitment and retention strategy.

Copyright © 2017 Deloitte Development LLC. All rights reserved. 8

Copyright © 2017 Deloitte Development LLC. All rights reserved. 9

According to our survey, the primary basis for salary

Copyright © 2017 Deloitte Development LLC. All rights reserved. 10

Copyright © 2017 Deloitte Development LLC. All rights reserved. 11

Exhibit 3. How integrated are your

Exhibit 4. The approach to having an integrated

Copyright © 2017 Deloitte Development LLC. All rights reserved. 12

Exhibit 5. Level of Integration by Company Size (# of employees)

Copyright © 2017 Deloitte Development LLC. All rights reserved. 13

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We are working with staﬃng agencies to ensure a

We oﬀer access to paid time oﬀ or other rewards

We are not planning to make changes at this time 72%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Copyright © 2017 Deloitte Development LLC. All rights reserved. 18

Copyright © 2017 Deloitte Development LLC. All rights reserved. 19

Average for all respondents = $11,389

Median for all respondents = $10,752

Exhibit 12. On average, what percent of Employee Share of Total

Average for all respondents = 22.4%

Median for all respondents = 20%

Copyright © 2017 Deloitte Development LLC. All rights reserved. 20

Median for all respondents = 2.5%

Copyright © 2017 Deloitte Development LLC. All rights reserved. 21

Exhibit 14. Please indicate your position Percent of

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Exhibit 15. Please indicate the level

Copyright © 2017 Deloitte Development LLC. All rights reserved. 23

Exhibit 16. Do you offer a Response Percent of Total

Yes, using a stand-alone provider or providers 14%

No, but we are considering adding this in 2017 or

Response Percent of Total

Yes, a narrow network offered by the health plan 14%

Yes, a narrow network that was customized for us 0%

Copyright © 2017 Deloitte Development LLC. All rights reserved. 24

Exhibit 18. Do you offer wellness- Percent of

Yes, with incentives for participating 58%

Yes, but no incentives or penalties apply 29%

No, we do not offer wellness programs 9%