The Relationship between Total Rewards and Business Results Today at People’s United Bank

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presented by Stacy Moher, Director, Health & Welfare Benefits

Human Resource Association of Central ConnecticutJune 21, 2012

The Relationship between Total Rewards and Business Results Today

at People’s United Bank

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Discussion Outline

• About People’s United Bank• Total Rewards• Company Goals & Strategies• Workplace Partnership• Compensation• Learning & Development• Benefits• Communications

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About People’s United Bank

• Founded in 1842• Largest independent bank in New England (HQ – Bridgeport, CT).• NASDAQ Ticker Symbol – PBCT• Total Employees – 5,500• President & CEO – Jack Barnes• Total Assets – $28 Billion• Approximately 375 Branches and 518 ATMs located in CT, VT, NY, NH, ME

and MA• 7-day banking available at over 80 Stop & Shop supermarket branches in CT• Through its subsidiaries, People's United offers brokerage, financial advisory

services, investment management services and life insurance through People's Securities, Inc.; equipment financing through People's Capital and Leasing Corp. and People's United Equipment Finance Corp; and other insurance services through the People's United Insurance Agency

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Total Rewards at People’s United

Work/Life ProgramsLearning &

Development

= TOTAL REWARDS

Benefits

Compensation

+

5

2012 Company Goals & Strategies

66

Workplace Partnership

77

= TOTAL REWARDS

Compensation

+

8

Compensation Program Goals

• Have Compensation programs that meet the needs of the business and employees, enabling us to attract and retain talent in each market

• Design programs that motivate employees by linking performance to business results

• Ensure programs are competitive and cost-effective

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Performance Management – the Link to Compensation

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Performance Management Accountabilities

1111

Total Rewards at People’s United

Learning & Development

= TOTAL REWARDS

+

12

Learning & Development Goals

•Invest in employees’ capabilities

•Link performance to business results

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Learning & Development

1414

Total Rewards at People’s United

Work/Life Programs

= TOTAL REWARDS

Benefits

+

1515

Benefits

Health• Medical/Rx• Dental• Vision• Flexible Spending Accounts• Health & Wellness Offerings

Work/Life• Tuition Assistance Program• Commuter Benefits Program• Employee Assistance Program• Long Term Care Insurance• Discount Programs

Welfare• Paid Time Off (PTO)• Short-Term Disability• Long-Term Disability• Basic Life and AD&D • Business Travel Accident• Supplemental Life and AD&D

Retirement• 401(k) Employee Savings Plan

–Employee Contributions–Employer Match–Employer Retirement Contribution

• Employee Stock Ownership Plan

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Health Care Program Goals

•Provide competitive benefits to help attract and retain high quality talent

•Provide choice of plans/programs that are easy to understand and navigate

•Manage overall program costs and balance financial for both the employer and employees

•Achieve efficient purchasing

•Promote member engagement and consumerism

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Wellness Program Goals

•Increase awareness of current programs through improved marketing/communications

•Increase member participation in health management programs with focused incentive/engagement strategies

•Increase preventive services/screening activity

•Increase member engagement as health care consumers through education

•Continue to measure/evaluate wellness program results

Reduce Health Care

Costs

Increase EE Morale

Reduce EE Absenteeism/Presenteeism

Increase EE Productivity

ImproveHealth

WELLNESS PROGRAMS

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Health & Wellness Strategy Development

- Total Rewards Survey - Informal Employee Feedback

- Consultant’s Analysis - Best Practices/Prevalence

- Health Care ReformText

Employee Feedback

Internal Review

External Review

- Enrollment and demographics- Health care claims data- Business and HR priorities- Cost drivers & and savings opportunities- EAP Utilization

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Health Care Plan Considerations

Medical/Rx

Design•Evaluate plan options•Evaluate various plan design scenarios

Vendor•Continue contracting arrangement or engage in carrier reviews•Negotiate performance guarantees to align with best-in-class industry standards

Health & Workforce Performance Mgt.•Reevaluate incentive strategy •Develop plan to address population needs•Target major modifiable risk factors

Pricing•Evaluate various pricing scenarios•Determine EE/ER subsidy•Review salary bands•Revaluate spousal surcharge and tobacco surcharge to align with market

Consumerism & Member Engagement•Evaluate member usage of consumer tools and develop plan for usage of key tools •Base funding on member participation in health/wellness and/or outcomes (if applicable)

Compliance•Analyze compliance impact•Comply with health care reform

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Employee Feedback

Total Rewards Survey Results:• 55% have a good understanding of wellness programs; 42% are satisfied

with the wellness programs

• Fitness center subsidy is the overwhelming preference for wellness benefits, with wellness and prevention incentives and onsite screenings rounding out the top three; weight control program ranked fourth

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Internal ReviewHealth Care Claims

Top 10 Diseases

13.4% 13.4%

6.2% 5.9% 5.6% 5.4% 5.2% 4.8% 4.4% 3.9%

0.0%2.0%4.0%6.0%8.0%

10.0%12.0%14.0%16.0%

Hyp

erlip

idem

ia

Hyp

erte

nsio

n

Dep

ress

ion

Non

spec

ific

Gas

tric

/Dys

peps

ia

Chr

onic

Thy

roid

Dis

orde

rs

Alle

rgy

Ast

hma

Low

Bac

k P

ain

Dia

bete

s M

ellit

us

Anx

iety

Conditions

% P

reva

len

ce

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Internal ReviewHealth Care Claims

•High-Cost Claimants - <1% spent 27% of total medical/Rx paid amounts

•Preventive Care

86.1%

68.0%

60.4%

49.5%

36.6%

42.0%

14.3%

13.2%

Well baby visits

Childhoodimmunizations

Childhood preventivecare visits

Mammography

Pap smears

Adult preventive carevisits

Cholesterol test

Colorectal screening

100% Preventive

Care Coverage*

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Internal ReviewEAP Utilization

Employee Assistance and Work/Life Program•Emotional well-being/stress management is #1 topic

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External ReviewConsultant’s Analysis

• Compliance with preventive/screening services has improved though opportunities to engage employees to participate in existing medical and health management programs

• Increase in high cost claimants and prevalence of chronic conditions having impact on total spend

• Depression, anxiety and stress are high

• Expand use of incentives and add disincentives to promote a higher level of consumer accountability for decisions

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External ReviewBest Practices/Prevalence

Source: 2012 AON Hewitt Health Care Survey

√√

√√

√√√

√√

√√

√

√ = Current People’s United offering

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Budgets

2012 2013

$

$

$

Total = $

$

$

$

Total = $

% Change YOY = 0%

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Health & Wellness Offerings/Incentives

Offering Incentives

Prevention General Health Health Incentives ProgramEmployees earn points for every wellness activity completed to qualify for an incentive

•On-site flu shots¹•On-site biometric screenings¹•On-site/local mammograms¹•Preventive services/screenings³

•Informed Health Line³•Wellness workshops/events•Online health resources•Wellness messaging•Life/Career Coaching²•Employee Assistance Program•On-site chair massage¹/²

Fitness Health Management

•START! Walking Program•Onsite fitness classes¹/²•Fitness center membership discounts

•Healthy Lifestyle Change Award•Quit For Life Tobacco Cessation Program•Health Assessment•Online wellness programs•Disease Management4

•Maternity Management4

•Case Management4

Nutrition/Weight Management

•Weight management program discounts•Weight Watchers®²•Nutritional cafeteria offerings1¹ People’s United major locations² Employee paid³ All Aetna members4 Only available to employees enrolled in the People’s United Medical Plan

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High-Level Wellness TimelineSample

Focus Jan Feb Mar

Spotlight on Wellness Weight Watchers Quit For Life/Tobacco Cessation Start! Program

Monthly Observance Thyroid Awareness Wear Red Day Nutrition

Healthy Possibilities Curriculum

Changing Habits, Changing Lives

Take Heart: A Healthy Heart for Life

Nutrition for Life

Event/Activity EAP Program Awareness Quizw/ prizes

Simple Steps to a Healthier Life(Health Assessment/

Online Wellness Programs)

Employee Fitness Week

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Communications

• ‘Visible’ top-down support • Corporate communications perspective • Planned communications calendar• Utilization of various communications

vehicles/balance• Demographics understanding, targeted

audiences• Formal and informal education and marketing • Access to decision-support tools and

resources• Branding• Tracking/measurement

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Communications

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Questions