Xx

Roy Farrell, Managing Director RoyFarrell@4hrv.com 614-266-5926

DISCUSSION OUTLINE The Business Context HR Technology-The Holy Grail

• Core tool functionality Example of Rewards Solution

2

A seat at the table…

C-Suite credibility requires the ability to model pay and performance options quickly and clearly for a busy, non-specialist audience. Leadership wants tools, not rules.

HR - We need better rewards

tools!

This means your system drives rewards programs, or your day becomes consumed with paperwork

and repetitive spreadsheets. At a significant cost.

Compensation solutions are the weakest in the HRIS suite of tools. Your HRIS cannot handle: - complex incentive or commission designs- multiple exceptions- frequent changes in compensation programs

and organization reporting relationships

So unless you spend significant dollars for system modifications and specialized IT staff, you are tied to the capabilities and functionality of systems that deliver a standard process. But this is not the way your programs work work, and it is not what your business leadership wants in reward programs.

software solutions without limits at a fraction of the cost

of alternativesNow, imagine…

Spreadsheets provide all the power and flexibility and you need to administer even the most complex plans, but spreadsheets can quickly become unwieldy.

You can automate them.Let us introduce to the

Excel you never knew existed 4

Unleash the Power of Excel!

Legacy

HRIS

Market Data

SALES

Flat File

Relational

E-Trade

Internal

External

Our innovative and flexible solutions take the most complex process and give you “click of the mouse” ease, all at a cost that is a fraction of system modifications or additional software. With no need for ‘power users’ or IT support.

Data Sources

FINANCE

5

Use the best of your technology:• Your HRIS for it’s core

functionality • Excel for powerful and

sophisticated solutions • VBA to automate the

time intensive tasks

Excel is one of the most powerful and flexible packages on the market today, but even ‘power users’ use only a fraction of its true capabilities. Excel with VBA lets you perform complex business analysis tasks and automate business tasks rapidly and cost effectively.With a click of the mouse, you can:

• Build Compensation planning tools – merit, incentives, equity• Integrate Performance Management with Rewards• Eliminate Paper - instructions, guidelines, reports • Create Sales Dashboards, productivity and profitability reports• Automate Sales Commissions• Automate all reporting, even the most complex reports

Complex administrative processes become “click a button” easy

6

Actions that currently take hours and days are turned into minutes and seconds. You can:

• Automatically create thousands of tools, with email or SharePoint delivery• Automatically combine tools throughout the process• Create the most complex reports, with no “cut and paste”• Import data from multiple sources

And anything else you can imagine!

CORE FUNCTIONALITY

A Flawless Workflow- by design

Too often, the workflow around rewards programs resides in the head of the person running the program. This creates many risks:

• the ‘key’ person who knows everything may leave

• the person in charge may ‘forget’ a step

• time pressures may cause errors.

With our solutions, knowledge transfer takes place between the experts and our system. The tool will guide even an inexperienced user through a most complex process.

Importing data is a easy as

1. Clicking the import data button

2. The tool will ask you to navigate to folder that contains the data file

3. Click Open

That is all. The tool will import data, validate data, and update tables that use the data.

On import, the tool will automatically update any tables that use that data, and give you the ability to modify or delete the new values, or identify missing data.

Data management in spreadsheets is a challenging task. For example, importing data can be a very complex and time intensive process.

Many tasks are necessary to ensure the data is brought into the spreadsheet accurately. Our tools validate data, test for errors or missing data, and update all tables that use the data. These tasks can take an individual hours and days to complete. Our tools do it in seconds.

8

HR Value response to SEM Group RFP - Compensation Management

All the powerful functions in the Admin Tool are executed with a mouse click. That is it.

• No cut and paste• No parsing of data• No repetitive tasks

We design the tools so users cannot make mistakes.

Foolproof Process

9

HR Value response to SEM Group RFP - Compensation ManagementEasy Data Integration from multiple data sources.

Existing Data Sources The HR Value solution does not require you to change your internal processes to ‘fit’ our system, or use spreadsheets to perform necessary tasks that our solution cannot deliver. The tool imports data from existing reports, or new reports developed for the Tool.

With multiple countries and HRIS, along with potential acquisitions, you need a tool that can easily bring all of the various sources together in a timely way. Our solution allows multiple sources to be used, and brought together during the rewards process.

Data Mapping Our tool uses a core set of variable descriptors, and a mapping function will relate the variable names used by the different systems to the name used by the core tool. For example, ‘Employee ID’ is called many different things in different HRIS systems. We provide a simple tool to map different names to the tool.

Once mapped, the process does not need to be repeated for later data imports, except for new or changed data fields.

10

HR Value response to SEM Group RFP - Compensation Management

All functions in our solutions are executed with a mouse click. That is it. Even the very complex ones.

Combine tools. Managers can combine completed subordinate tools with a mouse click.All actions are intuitive and easy.

Intuitive tools for Managers

Line managers especially have little time to learn a system they may use once or several times a year. Managers want “push the button” simplicity, but you can’t get this with HRIS systems.Sorting. Managers can sortthe data by clicking on the Column header. No possibilityof messing up the data!

Reporting. All reports are in the tools and dynamically updated.

11

HR Value response to SEM Group RFP - Compensation ManagementOur solutions are easy and intuitive for managers to use

The tool allows managers to plan and manage all compensation elements.

Managers can enter a %, and the dollar amount will be shown. They can enter a dollar amount and the % will be shown. You cannot do this with formulas or Macros without getting a circular reference error.

Merit matrices, Bonus targets and budgets can be used to control the distribution of rewards actions. The Spending Summary shows the effect of all actions.

Historical performance data is visible to managers in the Center box. The center box and graph data changes to the name reviewed.

Managers can click on the Salary, and bring up a calculator. Instead of computing the amounts, the manager can just enter the desired final salary, and the tool calculates the increase. You can allocate between Merit, Promotion or adjustment amounts..

Guidelines and instructions are embedded in the tools, in tabs.

Graphs show position relative to Market Data, guidelines or peers by performance.

12

Based on security, copies of submitted tools can be sent to HR or Compensation for reporting, auditing and modification.

Multiple Security Features. Security measure prevents anyone who is unauthorized from opening a tool that is not designed for them. An automated process can check the user ID of the associate to the list of “Authorized Users.”

13

HR Value response to SEM Group RFP - Compensation ManagementWe support multiple currencies in the same Manager tool; separate merit and bonus rules by currency. In Manager tools that have multiple currencies, the Summary Spending table and

reports can be converted to USD or other currencies.

With tools that have multiple currencies, the currency shows in the planning section, but converted to USD in the spending summary. User has option of display.

Separate merit grids can be set by currency.

14

HR Value response to SEM Group RFP - Compensation Management Supports effective dating for all salary actions, lump sum, bonus, promotions and

adjustments.

Effective dates are set by the user in a table, and Managers assign effective dates from a drop-down box in their tool.

A flawless and foolproof workflow

15

The process we demonstrate includes the following steps:1. Prepare Data Sources. These are standard reports from your HRIS and other systems.2. Set up tools. Instructions, guidelines, distributions & exceptions3. Prepare/Create/Combine Performance Rating tools. “Click the mouse”4. Plan Spending levels. Using actual ratings, you can plan and set spending levels5. Prepare/Create/Combine Merit & Bonus tools. A click of the mouse with email/Share

Point distribution. No cut and paste6. Review & Editing. Can change all variables, audit trail automatically created7. Produce reports. Parameters can be changed; no specialized language required

The developed workflow will be to your requirements. We demonstrate a rewards process that includes the Performance Management, Base and Bonus allocation.

The entire rewards process can be managed by a single analyst.

Part time.

The demo shows how the mechanics of all these steps could be completed in under 30 minutes. How much time do you currently spend?

1. Prepare Data Sources and Import data

Importing data is a easy as clicking a button. The tool will ask you to navigate to folder that contains the data. That is all.

The tool will also validate data on import – for example, ‘New’ incentive and salary bands, or Missing data will be detected

On import, the tool will automatically update any tables that use that data, and give you the ability to modify or delete the new values

The first step is setting up the tool, and getting current information into the tool. Your Admin team will prepare information needed by the tool. These files will be either existing reports, or new reports developed for the Tool. They could also be Excel or other files that you maintain separately from your HRIS system. There is no limit to the number of files for import. The files will be created and put into a specific folder location.

2. Set Up Admin tool

17

 At the beginning of the cycle, the Admin will set parameters, including:1. Set tool functions and appearance2. Instruction and form changes3. Import Employee data4. Set tool Distributions. The Distro Table sets who receives the Performance

Rating tool, the Merit and STIP tool. These can be different for Performance and Rewards, and set just prior to tool distribution.

5. Company Assignments. Company assignments are used to create organization reports. These assignments are made in the tool, and may not be stored elsewhere.

6. Passwords7. Email or SharePoint addresses8. Job Classification Assignments. For reporting, the tool allows you to group

positions into separate buckets. With the data import, the list of job titles is updated, and prior assignments are retained. These classifications could by job family, potential or any user designated category.

9. Correspondence Text. You can edit the text that will be sent with the attached tool. The letters are in a tab in the tool. You can have separate emails for different tools. 

The tool delivers much flexibility in appearance and function.

The setup can be done any time prior to creating the tool, and the setup can be changed at the last second. In the Demo we show, the Performance Appraisal process is completed before the Merit and Bonus tools are created.

Many functions are included in the tool, but may not be used at a specific time. If functionality is not needed, parameters are just left blank and it has no effect.

And again, the tool will fit your process. These features are demonstrated to show you the power and sophistication of our developed solutions.

18

HR Value response to SEM Group RFP - Compensation ManagementWe provide powerful functionalities that give you unparalleled flexibility to set, track and report on relationships in the organization.

User defined Company Assignments are used to create customized organization reporting relationships. These relationships are maintained in the tool, and may not be part of your HRIS.

Job Classification Assignments are maintained in a separate table. These classifications could by job family, potential or any user designated category.

The Distro Table is a powerful functionality that shows who receives the Performance Rating tool, the Merit and STIP tool, and LTIP tool. With the data import, the list of job titles and supervisors is updated, and prior assignments are retained.

On the Admin Tool, a Distribution column shows which tool an individual has been assigned to for Performance, STIP or LTIP.

19

HR Value response to SEM Group RFP - Compensation ManagementThe Distro Table is a powerful functionality that shows who receives the Performance Rating tool, the Merit and STIP tool, and LTIP tool.

• The default distribution for all tools is the Supervisor• All Supervisors and VPs are available in a drop down box , and any tool can be assigned to another

Supervisor through this functionality. The Performance, STIP and LTIP tools can be assigned separately• An exception table also allows the user to override the Distro table, and choose which Supervisor or VP will

receive specific individuals.

All assignments and exceptions are saved through new data imports. All tables are automatically updated with new employees or supervisors on import of data.

20

Passwords and easy email or Share Point distribution

Passwords can be set for tools, or imported.

Addresses can be set for tools, or imported. Tools can be sent automatically, after testing. Copies can be sent to the HR rep, or compensation every step of the way, and audit trails developed.

21

HR Value response to SEM Group RFP - Compensation ManagementAll data elements can be subject to rules

Prorating data elements is a table driven function.

And to make it easier for Managers and eliminate confusion, prorated information in their tools can be highlighted with conditional formatting

22

“Non-Technical” users can make changes and update tables, without IT or “power user” intervention

User controls the tool designThis also allows you to have a tool design for differentiated approaches for different business units.For example, one BU had a different process and cycle for bonuses, and you can ‘turn off’ the bonus columns

Change is the only constant in business. All changes can be made at any time in the process. You can change the appearance, add a bonus category, recommended distributions, etc, immediately and without IT support.

23

HR Value response to SEM Group RFP - Compensation Management You can change the appearance, add a bonus category, recommended distributions, etc, immediately and without IT support, allowing a differentiated approaches for different

business units. All changes can be made at any time in the process.

The User has remarkable control over the look, appearance and functionality of the tool using the Setup function. For example, one client BU had a different process and cycle for bonuses, and they can ‘turn off’ the bonus columns in the manager tools.

All of the changes can be made with a ‘click of the mouse’ by non technical users, and no IT or consulting support.

3. Prepare/Create/Combine Performance Rating tools

24

The tool creates performance rating tools for managers. The ratings assigned are used by the Admin to plan and budget rewards using real data, not estimates or projections.

1. Edit Performance rating forms 2. Set expected performance distribution. These numbers show as the

black bar on the rating distribution graph. 3. Edit Instructions in Perf Review Instructions tab. These instructions

are the first thing the Manager sees when the tool is opened

When ready, click the “Create Rating Tools” button. That is it.The tool will create a folder for the developed manager tools, and be sent to Managers using email or SharePoint.

In the demo, we created 208 manager performance rating tools in 3 minutes and 4 seconds.

After the managers complete the appraisals and ratings, they click the submit button in their tool. The tool will be sent to the email address set in the tool. That is it. We recommend a new email account that receives all the tools.

After you receive the completed tools, you put the tools in a separate folder, and click the “Combine Rating Tools” button. The tool combines all the ratings. No ‘cut and paste’ required.

25

4. Plan Spending levels -Robust planning and ‘What if?” functionality

After importing current data, you can plan and test spending levels.

You can plan at the company, division or region level . You can adjust spending and budgets down to individual tool level.

You can immediately see the impact of different proposals for merit ranges, bonus levels and performance distributions on spending. You can easily accommodate different rating systems or plan by job type.

26

HR Value response to SEM Group RFP - Compensation ManagementYou can plan and adjust spending and plans down to individual level. You can immediately see the impact of different proposals for merit ranges, bonus levels and performance distributions on spending, by targets or by actual distribution of performance ratings.

All plan parameters are under Admin control, with no need for IT or third party support.

We have a table driven, modular approach to defining compensation plans in the tool. Each component is ‘built up’ by components totally under control of the Admin.

You can change dimensions of the plan, and immediately see the impact of the change.

27

HR Value response to SEM Group RFP - Compensation ManagementYou can use rules to establish plan eligibility, or assign eligibility by country, by business unit or job family or at the individual level. We provide unparalleled ability to manage multiple

exceptions.

Most systems make things very difficult to bring flexibility in to compensation program design. You have to set up your plans to meet their system protocols. This is not the way you work, or what your business leadership wants.

Our solutions make the complex simple. The User has remarkable control over the ability to define eligibility and manage plans that cross multiple business units.

All of the changes and exceptions can be made with a ‘click of the mouse’ by non technical users, and no IT or consulting support.You assign eligibility into

various plans by drop down tables, and these can be set by rules, or in exception tables at the individual level. All calculations and reporting reflects the assignments.

28

5. Prepare/Create/Combine Merit & Bonus tools

After set up, you create the manager tools with a mouse click. That is it. The tools are created in the background. No additional work needed.

The tools can be put in a separate folder, or sent by email or share point.- The 952 Performance tools were created in

16 minutes.- The 5,134 incentive planning tools were

created with a click of the mouse, and sent by email in 2 ½ hours of computer time.

29

Combine Manager tools with a mouse click - no parsing data or ‘cut and paste’

After Managers complete the tool, you combine the tools with a mouse click. The tool will ask you to navigate to the folder where the tools have been saved. That is it. No additional work needed. All reporting is updated automatically.

Tools can be combined centrally, or Managers can combine the tools of subordinates. Again, all actions – combine, print, create .pdf or exporting data to Excel, is done with a click of the mouse.

30

6. Review and editingIn Business, the only constant is change.

The functionality of our tools allow rapid change to the tools, or data in the tools at the individual. The Administrator can edit any field in the tool.

The edit table populates with the current data in the tool. Any changes can be made.

After the edit is made, any changes made are stored in an Audit file.

31

7. ReportingReporting• All reports are dynamically updated, and accessible to users throughout

process, and can view, print or create a .pdf• While standard reports will cover most typical reporting needs, we provide

an Export to Excel function for all tools• Users can change all report parameters.

32

This overview just scratched the surface of what our solution delivers. Call to arrange a live demo of developed solutions, or answer any questions you may have.

Roy Farrell 614-266-5926 royfarrell@4hrv.com

NEXT STEPS

Software Solutions We deliver powerful, custom software solutions for our clients, tools that are fast, simple to use and maintain, yet powerful enough to integrate a variety of business tasks. We help clients achieve a competitive advantage with innovative solutions.

HR Valuation Comprehensive reviews and design of total compensation programsExecutive Rewards Our experience has proven that substantial business risk is created when

executive talent, rewards and performance metrics are not aligned with business strategy. We strive to have leaders think and act as owners of the business.

Incentives and Commissions Development of new plans to meet client needs and objectives, and assistance in program implementation and communication

Performance Metrics and Dashboards Significant business and talent risk can occur when rewards programs are based on wrongly held opinions. We connect value and the real drivers of the business, and develop the tools to get the information into managers hands.

Training & DevelopmentIntensive three day program to help create a Value mindset for HR professionals

We are a different kind of consulting company. We approach client issues from the perspective that real value is created for investors by aligning talent, performance and rewards, and delivering the enabling technology to make it all actionable.

About HR Value