Explore the Possibilities

Explore the Possibilities

2013 HR Service Delivery Forum

Case Study: Communicating the Value of Total Rewards at Comerica

Session agenda

 Opening

 Welcome and introductions

 Towers Watson’s view of Total Rewards  The decision: Print vs. online

 The Comerica story

 Company background

 A look back — The print statement  The business case for change

 The future now — The online statement

 Implementation — Lessons learned, successes and quick wins

 Product demonstration

 Colleague connect — Your Total Rewards  Measurement — So how did we do?

 Coming attractions — Future enhancements

 Closing

Towers Watson’s view of Total Rewards

 Life and Disability

 Other Welfare Benefits  Wellness Initiatives

 EAP

 Voluntary Benefits

 Discounts/Affinity Programs  Time Off

Career and Environmental Rewards  Training/Development

 Mentor Programs  Career Management

Programs

 Talent Mobility Programs  Discretionary Technology

 Flexible Work Programs  Work/Life Programs

 Corporate Social

Responsibility Programs

 Well-being Programs

Performance-based Rewards  Base Pay Programs

 Short-term Incentives

 Long-term Incentives  Recognition

The decision: Print vs. online

Online Statements

 Distribution (access) timing controlled

by employee

 Updated in near or real-time

 Various uses, which can change

easily and frequently, as needed

 Easier for employee to focus on

specific areas of interest

 Ability to provide extensive context

(links to other content and sites)

 Cost-effective for large populations

and multiple locations

 Employer can easily track use/

navigation

 Employee can choose modeling

assumptions

 Easily forwarded to financial advisor

Print Statements

 Distribution timing and targeting

controlled by sender

 Often published annually

 Used to promote compensation and

benefits

 Practical form of delivery for small

populations and groups without Internet access

 All information in one place

 Booklet about sender with glossy

pages and color print has impact

 Easily shared with family  Employer chooses modeling

assumptions

Background on Comerica

 Founded in 1849, Comerica is a financial services company

headquartered in Dallas, Texas, with operations in Arizona, California, Florida, Michigan and Texas and total assets of $65.4 billion at

December 31, 2012

 Fast facts

 Among the 25 largest U.S. banking companies

 Located in seven of the ten largest U.S. cities

 #2 pre-paid commercial card issuer (Nilson Report)

 489 offices as of December 31, 2012

 #3 among DiversityInc® “Top 10 Regional Companies for Diversity” in 2012

 Publicly traded on NYSE (CMA)

A look back — The Comerica paper statement

 Prior to Total Rewards, information about Comerica’s contribution to

employee benefits was fragmented and primarily focused on retirement benefits

 Pension statement provided annually in third quarter based on information as

of December 31st of the prior year

 Savings plan statements provided quarterly

 Annual health and welfare materials told employees how much they

would be paying for benefits and nothing about Comerica’s expense

 These statements told employees about what they have

 Total Rewards tells employees about Comerica’s investment in them

 Comerica offers great benefits overall, but we were not telling our

employees

 There was no single way to gauge employee understanding or

The business case for change

 Comerica had a number of goals that were not being met with printed

statements

 Colleagues thought about retirement or health and welfare benefits

separately and had little awareness about total benefits

 Colleagues had no information about what Comerica was paying on their

behalf for any of these programs

 Comerica wanted to align the delivery of Total Rewards with the new

“Colleague Connect” employee portal

 The online statement was expected to bring the following benefits

— Increase awareness of Comerica benefit plans and programs

— Build awareness of what they might be missing by not participating

— Promote awareness and appreciation of the value of Total Rewards at Comerica

The future now — The online statement

 The online statement was released to employees on October 2, 2012

 9,000 employees received the online statement

 Statement was done in English only

 Data was aggregated from two data sources to produce the statement

 Single sign-on technology was used to link to other systems without requiring

another ID and password

 Implementation timeline was May to October

 Statement was launched prior to Open Enrollment

 “Ah ha” moments for employees:

— Comerica’s portion of the cost for the medical plan

— Comerica’s annual cost for pension

— How much of the parking cost that Comerica pays for employees!

— Summing the various incentive pay buckets for the revenue generators

Implementation — Lessons learned, successes and quick

wins

 Find your inner actuary — You can never provide enough review of

individual pension benefits and calculations

 Leadership is important — Make the senior leader video a prominent

feature of the statement

 People like to compare — Gather and provide information about your

organization’s competitive position in the market

 Think Big, Start Small, Scale Up — You don’t need to boil the ocean

during the first implementation phase

 Successes and quick wins

 Statement was accurate and on time

 Statement was easily printable

 Average colleague understood the site

 Major lines of business and managers felt prepared for launch

Measurement — So how did we do?

 97% of those surveyed found the Total Rewards Statement site easy to

navigate and the information they needed easy to find

 95% found it easy to understand the total value of their compensation

and benefits programs

 95% agreed that Comerica does a good job of providing information

about their compensation and benefits programs

 Comments from Comerica colleagues:

 “Very nice tool to use!!”

 “Great website and easy to understand”

 “I will use this for the better understanding of my benefits and to plan for

retirement”

 “It’s nice to be able to look at a glance and see just how much the corporation

Coming attractions — Future enhancements

 Develop a manager update campaign to encourage readership

 Expand to small populations in Canada and Mexico

 Continue to simplify navigation and explanations

 Include the value of training and leadership development

 Show 401(k) projections if contributions were increased

 Project pension benefits and show the value of the benefit yet to be

earned (the cost of leaving)

 Provide more detail for incentive compensation

 Drawings and business unit competitions to increase readership in first

30 days after launch

 Provide more “Did you know…” statements showcasing Comerica's

Today’s presenters

HR Technology, Senior Consultant jonathan.sears@towerswatson.com 215.246.7711 Suzanne Spisak SVP Benefits Director sspisak@comerica.com 214.462.4103