1. Compensation Philosophy Performance-driven and market-referenced –We value high performance and compensate employees based on their contributions to the organization’s successes –We are committed to paying staff a competitive wage that correlates to performance

2. Compensation Philosophy Benefits to the organization –Clear message to the organization Reward high performance –Recognize and reward employees Committed to pay competitive wages –Hire and retain high performing staff

3. Compensation Philosophy Applied Performance-driven and market-referenced –Market Analysis Commitment to pay staff a competitive wage that correlates to performance –Salary Structure Group jobs of similar internal value guided by market analysis –Base Increases and Lump Sum Payments Performance-driven –Rewards and Recognition Event/project specific recognition

4. Compensation Philosophy Applied Market Study –We are committed to paying staff a competitive wage that correlates to performance Annual process Monitor market competitiveness Market adjustments

5. Compensation Philosophy Applied Salary Structure –Group jobs of similar internal value guided by market benchmarked jobs MAIS has 13 salary ranges Midpoints derived from market analysis Competitive Range of Pay –10% above and below the midpoint

6. Compensation Philosophy Applied Performance-driven and market-referenced –Base increases and lump sum payments Priority is to pay more to our high performers and those who contribute to the organization’s success –Accomplished by providing managers with guidelines »Base Increase and Lump Sum Matrix »Position in Range definitions

7. Compensation Philosophy Applied Base Increase and Lump Sum matrix –Align pay over time to performance relative to position in range –Range of % increase Lower paid, higher performing staff may receive higher % increase Higher paid, lower performing staff may receive lower % or no increase Lump sums in lieu of base increase in some cases

8. Compensation Philosophy Applied Position in Range definitions –Guideline on what performance to expect from staff based on their position in range Below the competitive range: typically new to the job (e.g. new hire, promotion), and/or not yet fully qualified Within the competitive range: fully qualified Above the competitive range: qualifications extend beyond the job and performance is exceptional and sustained at that level

9. Compensation Philosophy Applied Rewards and Recognition –A program to encourage and reward work efforts and results that are exceptional and beneficial to the organization Peer to Peer “Spirit of Excellence” awards Manager Reward - $25 gift card Director Reward - $250, $750, $1500 payments –projects –process improvements –production support –customer service –leadership

10. Compensation Philosophy Applied Conversations with Staff –Help employees understand: Compensation philosophy How philosophy is applied –Discuss performance expectations –Manage expectations for base increases

11. Compensation Philosophy Performance-driven and market-referenced –We value high performance and compensate employees based on their contributions to the organization’s successes –We are committed to paying staff a competitive wage that correlates to performance –Questions?