Compinsense is a consulting firm that partners with clients to identify HR programs and initiatives that drive business results. They provide seasoned consultants with expertise in areas like compensation, benefits, organizational design, and performance management. Compinsense helps clients implement cost-saving programs in HR that decrease costs while increasing employee performance, morale, and retention.

1. DRIVING BUSINESS RESULTS THROUGH HR

2. Compinsense Intro ©Compinsense. All rights reserved. Compinsense is a full service consulting firm specializing in human capital management We partner closely with our clients to help identify mission critical programs to drive business results through HR We also provide expertise/experience on individual projects and initiatives Our team can work as consultants at a high-level or can provide interim consulting resources to augment your existing staff or project

3. Our People : Our Greatest Asset ©Compinsense. All rights reserved. Seasoned compensation experts with a minimum of 5-10 years experience From our network of professionals that we’ve worked with in the past and are top tier consultants Look out for your department and organization; long-term partnership approach regardless of length/scope of project Evaluate, design and implement programs that align with your business goals and objectives Consult on compensation programs, from strategy to implementation We match industry background, approach, and personality for all projects

4. The Compinsense Approach ©Compinsense. All rights reserved. Implement cost savings programs and systems that realize immediate returns Leverage cost saving dollars on critical HR programs, initiatives and infrastructure with a focus on: Increasing sales and revenue Decreasing corporate risk Increasing employee morale, commitment and performance Plans that drive performance and revenue can pay for themselves

5. Dependent Eligibility Audits Realize Immediate and Long-Term Cost Savings; an HR initiative to add to the bottom line (especially important in today’s economy) Are you sure all dependents enrolled in your medical plan are eligible for coverage? FACT: Conservatively, 4 to 8% of all dependents are unable to document proof of eligibility. ( Average industry experience over recent years of plan audits) What is your cost of extending coverage to dependents? FACT: Average annual incurred medical cost per dependent: $1780 (Mercer 2007 National Survey of Employer Sponsored Health Plans) Savings: An employer with 1000 employees enrolling an average of two dependents per employee could save over $200,000 annually by identifying and removing ineligible dependents from its health plan. ©Compinsense. All rights reserved.

6. Benefit Dependent Eligibility Audits – Cont. A Qualified Dependent Eligibility Audit offer employers several key risk management benefits beyond controlling costs Fiduciary obligations - Employers have a fiduciary responsibility to ensure that their plans operate according to terms in the plan ERISA Violation - Knowingly allowing ineligible persons to participate in plan can violate ERISA’s fiduciary duties and lead to liability for improper plan administration SOX - Act requires that businesses practice financial controls and fraud prevention; therefore dependent eligibility verification programs are a good element of any SOX compliance program Tax issues - A verification program can help identify and minimize employers’ exposure for tax reporting violations. Outsourcing the audit process creates a buffer between employer and employee and can minimize potential conflict of interest ©Compinsense. All rights reserved.

7. Compensation Expertise Sales and Incentive Compensation Base Salary Analysis and Design Job Evaluation Executive and Board Compensation Performance Management Organizational Design FLSA Audits Low cost HR employee morale booster programs and tools ©Compinsense. All rights reserved.

8. Sales & Incentive Compensation A combination of sales strategy, compensation and talent management actions provides the best odds of success through this challenging time Reward short-term, tactical successes Retain the middle 60 percent and improve their productivity Take a close look at the bottom 10 percent of your sales force Segment your customer base Maximize Revenue Incentivize the right behaviors and focus to drive profit Avoiding costly mistakes ©Compinsense. All rights reserved.

9. Base Salary Analysis and Design Our goal is to obtain the greatest return possible for our clients on the investment they make in employee compensation Pay for performance Benchmarking and competitive analysis Could be overpaying for talent Maximize the productivity and motivation of your employees Communication is key to employee motivation ©Compinsense. All rights reserved.

10. Questions??? ©Compinsense. All rights reserved.

11. Recommendations & Next Steps: ©Compinsense. All rights reserved.

12. Appendix ©Compinsense. All rights reserved.

13. Job Evaluation Clearly define job families Definite levels within families Create competency models for critical roles Weed out fragmented incomplete job families ©Compinsense. All rights reserved.

14. Executive and Board Compensation Retain Key Talent Adjusted approach based on current economic conditions Incentivize board to think out of the box to deliver increased productivity and savings ©Compinsense. All rights reserved.

15. Other Best Practice Cost Saving Trends Competitive analysis and bidding on current benefit provider offerings and rates Reviewing current plan documents for potential cost saving measures (with minimal employee impact) Competitive analysis and bidding on current 401K administrator, performance, and rates Is matching program really relevant with current participating population? ©Compinsense. All rights reserved.

16. FLSA Audits Minimize long term liability and exposure Proper classification of exempt/non exempt Compliance with government regulations Decrease exposure to class action lawsuits ©Compinsense. All rights reserved.

17. Performance Management Getting the most out of your employees Ensuring compensation maximizes productivity/output ©Compinsense. All rights reserved.

18. Employee Morale Booster Total Compensation Statement Community Impact Team Building Low cost recognition programs Career Pathing ©Compinsense. All rights reserved.

19. Organizational Design Ensure you have the talent and people in place to meet critical business roles and objectives Analyze your organizational needs for succession planning ©Compinsense. All rights reserved.

20. Compensation Consulting - Principals Clifford Stephan, Principal and Co-founder Clifford shares his passion and experience for human resources and compensation management with his clients. Over the past 10 years, Clifford has served both as a consultant and in management roles across a variety of industries – from computer technology and healthcare to government. His client list includes household names such as Google, Lawrence Berkeley National Laboratory, Kaiser Permanente and Sun Microsystems. His work experience covers a broad range of HR functions, from conducting global compensation competitive analysis, benchmark survey design and participation, job evaluations as well as consulting in the areas of organizational development, job definition, and career management. Rick Olivieri, Principal Consultant Rick has 25 years experience in the compensation field, working on salary, incentive, stock, sales, international, and executive compensation programs. He has held managerial positions at Adaptec, Union Bank of California, US Sprint, and Bank of America. In addition, he was a consultant for Towers-Perrin, Sibson & Company, and Ernst & Young. He has been quoted in the New York Times, CFO Magazine and HR Executive Magazine. Rick has been a member of the Bay Area Compensation Association Steering Committee for over 15 years. Rick speaks frequently at various compensation and human resources organization meetings and seminars, and teaches compensation at UC Berkeley extension. He has a Masters Degree in Industrial and Labor Relations. Don Helt, Principal Consultant Don’s professional background includes experience as Director and VP of Human Resources for the full array of HR functions in both public and private corporations; entrepreneurial experience as founder and President of Human Resource MicroSystems; and as the principal in a Human Resource consulting practice serving middle and large market clients in a variety of industries. Don has served as founder and chairperson for the Bay Area Compensation Association and as Board Member for the Northern California Human Resources Association, as well a having long standing professional memberships in both the International Association for Human Resource Information Management and the Society for Human Resource Management. He holds a BS degree in Industrial Relations from Rider University and an MBA from the University of Southern California. ©Compinsense. All rights reserved.