The Relationship between Total Rewards and
Business Results Today
at People’s United Bank
presented by Stacy Moher, Director, Health & Welfare Benefits
Human Resource Association of Central Connecticut
June 21, 2012
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Discussion Outline
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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
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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
Compensation
Learning &
Development
Benefits
+
Work/Life Programs
= TOTAL REWARDS
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2012 Company Goals & Strategies
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Workplace Partnership
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Compensation
+
= TOTAL REWARDS
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Compensation Program Goals
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Have Compensation programs that meet the needs of the business and
employees, enabling us to attract and retain talent in each market
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Design programs that motivate employees by linking performance to
business results
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Ensure programs are competitive and cost-effective
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Performance Management –
the Link to Compensation
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Performance Management Accountabilities
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Total Rewards at People’s United
Learning &
Development
+
= TOTAL REWARDS
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Learning & Development Goals
•Invest in employees’ capabilities
•Link performance to business results
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Learning & Development
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Total Rewards at People’s United
Benefits
+
Work/Life Programs
= TOTAL REWARDS
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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
Improve
Health
Reduce
Health Care
Costs
•Increase preventive services/screening activity
•Increase member engagement as health care
consumers through education
•Continue to measure/evaluate wellness program results
Increase EE
Productivity
WELLNESS
PROGRAMS
Increase EE
Morale
Reduce EE
Absenteeism/
Presenteeism
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Health & Wellness Strategy Development
- Total Rewards Survey
- Informal Employee Feedback
Employee
Feedback
Internal
Review
- Enrollment and demographics
Textclaims data
- Health care
- Business and HR priorities
- Cost drivers & and savings opportunities
- EAP Utilization
External
Review
- Consultant’s Analysis
- Best Practices/Prevalence
- Health Care Reform
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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:
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55% have a good understanding of wellness programs; 42% are satisfied
with the wellness programs
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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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Hyperlipidemia
16.0%
14.0%
12.0%
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
6.2%
5.6%
5.4%
5.2%
4.8%
4.4%
3.9%
Allergy
Asthma
Low Back Pain
Diabetes Mellitus
Anxiety
5.9%
Chronic Thyroid
Disorders
Nonspecific
Gastric/Dyspepsia
Depression
Hypertension
% Prevalence
Internal Review
Health Care Claims
Top 10 Diseases
13.4% 13.4%
Conditions
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Internal Review
Health Care Claims
•High-Cost Claimants - <1% spent 27% of total medical/Rx paid amounts
•Preventive Care
Well baby visits
13.2%
14.3%
86.1%
42.0%
36.6%
100%
Preventive
Care
Coverage*
49.5%
60.4%
68.0%
Childhood
immunizations
Childhood preventive
care visits
Mammography
Pap smears
Adult preventive care
visits
Cholesterol test 22
Internal Review
EAP Utilization
Employee Assistance and Work/Life Program
•Emotional well-being/stress management is #1 topic
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External Review
Consultant’s Analysis
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Compliance with preventive/screening services has improved though
opportunities to engage employees to participate in existing medical and health
management programs
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Increase in high cost claimants and prevalence of chronic conditions having
impact on total spend
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Depression, anxiety and stress are high
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Expand use of incentives and add disincentives to promote a higher level of
consumer accountability for decisions
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External Review
Best Practices/Prevalence
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√ = Current People’s United offering
Source: 2012 AON Hewitt Health Care Survey
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Budgets
2012
$
$
$
Total = $
2013
$
$
$
Total = $
% Change YOY = 0%
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Health & Wellness Offerings/Incentives
Offering
Prevention
•On-site flu shots¹
•On-site biometric screenings¹
•On-site/local mammograms¹
•Preventive services/screenings³
Fitness
•START! Walking Program
•Onsite fitness classes¹/²
•Fitness center membership discounts
Nutrition/Weight Management
•Weight management program
discounts
•Weight Watchers®²
•Nutritional cafeteria offerings1
Incentives
General Health
•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
Health Management
•Healthy Lifestyle Change Award
•Quit For Life Tobacco Cessation
Program
•Health Assessment
•Online wellness programs
•Disease Management4
•Maternity Management4
•Case Management4
¹ People’s United major locations
² Employee paid
³ All Aetna members
4 Only available to employees enrolled in the People’s United Medical Plan
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High-Level Wellness Timeline
Sample
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
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Communications
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‘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
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