presented by Stacy Moher, Director, Health

1
The Relationship between Total Rewards and
Business Results Todayat Peoples United Bank

• presented by Stacy Moher, Director, Health
  Welfare Benefits
• Human Resource Association of Central Connecticut
• June 21, 2012

2
Discussion Outline

• About Peoples United Bank
• Total Rewards
• Company Goals Strategies
• Workplace Partnership
• Compensation
• Learning Development
• Benefits
• Communications

3
About Peoples 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

4
Total Rewards at Peoples United
Benefits
Compensation

Learning Development
Work/Life Programs
TOTAL REWARDS
4
5
2012 Company Goals Strategies
6
Workplace Partnership
6
7
Compensation

TOTAL REWARDS
7
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

9
Performance Management the Link to Compensation
10
Performance Management Accountabilities
11
Total Rewards at Peoples United

Learning Development
TOTAL REWARDS
11
12
Learning Development Goals

• Invest in employees capabilities
• Link performance to business results

13
Learning Development

14
Total Rewards at Peoples United
Benefits

Work/Life Programs
TOTAL REWARDS
14
15
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 ADD Business Travel Accident Supplemental Life and ADD Retirement 401(k) Employee Savings Plan Employee Contributions Employer Match Employer Retirement Contribution Employee Stock Ownership Plan
15
16
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

17
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

18
Health Wellness Strategy Development
- Enrollment and demographics - Health care
claims data - Business and HR priorities - Cost
drivers and savings opportunities - EAP
Utilization
19
Health Care Plan Considerations
Medical/Rx Medical/Rx 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
20
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

21
Internal ReviewHealth Care Claims
22
Internal ReviewHealth Care Claims

• High-Cost Claimants - lt1 spent 27 of total
  medical/Rx paid amounts
• Preventive Care

100 Preventive Care Coverage
23
Internal ReviewEAP Utilization

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

24
External ReviewConsultants 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

25
External ReviewBest Practices/Prevalence
v
v
v
v
v
v
v
v
v
v
v
v
v Current Peoples United offering
Source 2012 AON Hewitt Health Care Survey
26
Budgets
2012 2013
Total Total Change YOY 0
27
Health Wellness Offerings/Incentives
Offering Offering Incentives
Prevention General Health Health Incentives Program Employees 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 Health Incentives Program Employees earn points for every wellness activity completed to qualify for an incentive
Fitness Health Management Health Incentives Program Employees earn points for every wellness activity completed to qualify for an incentive
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 Health Incentives Program Employees earn points for every wellness activity completed to qualify for an incentive
Nutrition/Weight Management Healthy Lifestyle Change Award Quit For Life Tobacco Cessation Program Health Assessment Online wellness programs Disease Management4 Maternity Management4 Case Management4 Health Incentives Program Employees earn points for every wellness activity completed to qualify for an incentive
Weight management program discounts Weight Watchers² Nutritional cafeteria offerings1 Healthy Lifestyle Change Award Quit For Life Tobacco Cessation Program Health Assessment Online wellness programs Disease Management4 Maternity Management4 Case Management4 Health Incentives Program Employees earn points for every wellness activity completed to qualify for an incentive
¹ Peoples United major locations ² Employee
paid ³ All Aetna members 4 Only available to
employees enrolled in the Peoples United Medical
Plan
28
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 Quiz w/ prizes Simple Steps to a Healthier Life (Health Assessment/ Online Wellness Programs) Employee Fitness Week
29
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

30
Communications
31
Questions