MCF

Achieving Corporate Objectives through Employee Engagement

One Source Total Recognition®

Presented by:John Doe, Senior Vice President

October xx, 2008

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Our Approach 6

Value Proposition 5

Summing it Up 4

Agenda

Technology Behind the Solution 21

Marketing Communications 24

Formal & Informal Events 25

Organization Concerns Linked with Desired Behaviors 18

Top Five Main Employee Organization Concerns 9 Turnover Employee Turnover 10 Create a Communication Culture 12 Inspire Leadership 13 Continuous Training and Development 15 Encourage Diversity 16

What Keeps an Employee Engaged? 8 Implementation Process Flow 26

Investment Analysis 27

Our Journey to Today 28

Total Recognition Value of Partnership 29

Re-cap: 3 year Anticipated Results 30

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The New Standard CorporationSales and marketing consulting company that provides solutions to organizations to improve employee communication anddevelop performance-based programs for increasing customer satisfaction and product quality.

Summing it Up

Top Three Prevailing Themes

Quality Customer Experience/Satisfaction/Retention

Engaged Workforce/Dedicated/Recognition Culture

Improved Growth/sales and sustained Profits

Recognition is a driver that will deliver effective employee engagement, enhance employee motivation and satisfaction, increase

employee productivity, and contribute to improved organizational performance. Organizations that successfully implement employee

engagement programs tend to have a recognition strategy and architecture that are integrated, multi-faced, and multi-tiered.

Anticipated 3-Year Results: 100% Employee Participation Increase Employee Engagement by 20 to 30% Improve Customer Satisfaction Create an Engaging Workplace Boost Sales and Profits Growth and Development of Employees Develop a Recognition Culture

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Value Proposition

As a leading provider in global recognition solutions, it has been our experience that people performance starts at the top tomobilize an organization toward achieving their goals.

As the nucleus, our client’s priorities help us to linkrewards and performance to corporate goals andobjectives in order to strategically deliver a solutionthat supports corporate culture and cultivatescompany values.

It is important that employees not only know theircontribution is valued, but that they are recognizedfor their contribution.

Through our successful program(s) our clientshave measured success not just in terms of money[spent, saved, earned], but also in terms ofoptimizing the return on investment in theiremployees.

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Our Approach

By implementing our One Source Total Recognition® methodology, we can consolidate allof your employee recognition initiatives under one unique employee recognition program.

Our strategy is to create brand buy-in internally by creating a points program that will educate, motivate, involve and engage TheNew Standard Corporation’s employees to ensure the brand, its message, values, and strategy are effectively communicatedthroughout the organization.

Customized to meet your company’s goals & objectives

Flexible to accommodate TNS’s changes

Provide increased efficiency, control and selection

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Our Approach

One Source Total Recognition® methodology has three phases. Each phase plays a key role in developing a program that isperfect for your needs.

Phase 2:Implement

Phase 1:Develop

An interactive process during which our recognition experts will work with your internal team to understandyour organization’s critical business objectives, mission, vision, core values and desired employeebehaviors. By gathering this information, our team will be able to fully understand your objectives in orderto link them with the desired employee behaviors to determine an appropriate program design.

Phase 3:Measure

Assessment and measurement is an essential component of the recognition process. Successfulevaluation of an employee’s engagement is through employee assessment tools. The program is designedto assist your organization in determining the impact made to your solution. Post program data is collectedand compared with pre-program baselines, control group differences and expectations to generateperformance metrics.

The Total Vision Recognition® (Total Vision) is a complete points-based recognition portal that bindsinformation technology into the fabric of your recognition culture. It provides greater program visibility withrobust backend reporting functionality. Total Vision can handle the demands of companies of all sizes.This technologically advanced application is adaptable to diverse industries, manages multiple initiativessimultaneously, and offers extensive customizable features.

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What Keeps an Employee Engaged?

Source: Hewitt Associates LLC.

Company Policies HR Procedures

Processes &Procedures

Intrinsic Motivation & Values Work Tasks Resources

Work/Values

Compensation Pay Benefits

Quality of Life Work/Life Balance Physical Work Environment Safety

Opportunities Career Development Recognition

People Sr. Leadership Managers

Coworkers Customers

25% of workers have been at the same job forless than one year.

45% of workers want to change jobs every 3-5 years.

150% is the cost of employee turnover at currentsalary level (tangible and intangible).

A worker will change jobs ten times before age 40.

18 is the number of months where an employee ismost vulnerable to leaving.

Employee engagement is defined as "the extent to which employees commit to something or someone in their organization, howhard they work and how long they stay as a result of that commitment.“Corporate Leadership Council. (2004). Driving performance and retention through employee engagement. Washington, DC: Corporate Executive Board.

Turnover Employee TurnoverAccording to the U.S. Department of Labor, it costs one-third of a new hire’s annual salary to replace them. Direct costsinclude advertising, sign on bonuses, headhunter fees and overtime. Indirect costs include recruitment, selection andtraining and decreased productivity while current employees pick up the slack.

Create a Communication CultureEmployee engagement and communication is important, even necessary, to the success of any organization.

Inspire Leadership

Step Up Middle ManagementThe dividends of developing a reputation for ethical leadership leads to fewer legal problems, increased employeesatisfaction, increased employee commitment and increased ethical conduct.

Engage Senior LeadershipExecutives that exhibit a much higher level of engagement in the organization relative to their employees drivesengagement in the organization.

Continuous Training and DevelopmentOrganizations that outperform their competitors cite the opportunity for learning and development as one of the mostimportant elements in building employee engagement.

Encourage DiversityToday’s rapidly changing demographics and increasing emphasis on a global world continue to move workplacediversity to the forefront of effective organization strategies.

TNS’s Top Five Main Employee Organization Concerns

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Call Center Rep Estimated turnover cost:

$8,000 - $12,000 depending on industry.

Costs include: advertising, screening, recruitersalary, manager interview time, trainer salary &equipment, agent salary while in training andnot in production, cost of learning (mistakes)during transition to average number of calls.

Retail Worker Estimated turnover cost for an 8/hour

employee: $3,500

Costs include: customer service disruption,emotional costs, loss of morale,burnout/absenteeism among remainingemployees, loss of experience, continuity, and“corporate memory”.

SHRM 2005; Q&A: Training & Retaining Good Reps.

The Cost of Turnover

“Estimated costs of turnover in the United States

economy: $5 trillion per year. The cost of

disengagement: $300 billion Disengaged employees

miss an average of 3.5 more days per year.”- Frank, F.D., Finnegan, R. P., & Taylor, C.R.,The Race for

Talent Getting Engaged by Steve Bates, HR Magazine,February 2004.

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How Does Your Organization Compare?

“Research shows that engaged employees perform better and are more optimistic about their work goals. Employerswith engaged employees tend to experience low employee turnover and more impressive business outcomes.”Kevin Sheridan, HR Solutions

HR Solutions, Inc, 2007.

Employee Engagement

59%

16%

25%

Actively Disengaged16%

Ambivalent59%

Engaged25%

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Create a Communication Culture

Communication is essential for employeeretention, positive morale and good customerservice

Good communication is a hallmark of a high-retention work environment.

Source: sharedHR Monthly Bulletin, Good Communication results in Employee Retention.

“Engaged Employees demonstrate higher productivity,

loyalty and stamina, and that usually contributes to a

healthier bottom line. They are easier to retain, and

they help foster the retention of their fellow employees.

And employees who are given an even broader culture

of communication yield even greater benefits. They

tend to be innovators and thought-leaders who drive

progress for their organization.”

In a recent survey conducted by Chart YourCourse, International, 69% of respondentsreplied that they would like to see theirsupervisors “be better at communicating”.

In a survey conducted by Watson Wyatt(2008), employees stated the number onreason for leaving was the poor relationshipwith their supervisors (many attributing this topoor communication).

High-access Organizations shares informationand communicating to the highest extentpossible.Employees, given the maximum information, willmake good business judgments, and react morequickly to the changing needs of customers andthe environment.

Low-access Organizations have difficulty inresponding to change, traditional hierarchicalmanagement, failure to change and satisfycustomer needs and poor morale.Organizations experiencing problems due to lowaccess to information rapidly can improve a widearray of issues by improving communications.

- itzblog.com, May 16, 2007.

Good communication:“An organizationcharacterized by highaccess to information”.

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Stepping Up Middle Management

Source: Wayne Hochwarter, Associate Professor of Management in the College ofBusiness at Florida State University, Florida State University Study, January 2 ,2007.

“Leading with integrity is at the root of ethical

leadership. Broadly defined, ethical leadership is the

demonstration of normatively appropriate conduct

through personal actions and interpersonal

relationships and the promotion of such conduct

among followers through two-way communication,

reinforcement and decision-making process.”

The study found that Employees don’t leavetheir job or company, they leave their boss.

39% of workers said their supervisor failed tokeep promises.

37% said their supervisor failed to give creditwhen due.

31% said their supervisor gave them the “silenttreatment” in the past year.

27% said their supervisor invaded their privacy.

23% said their supervisor blamed others tocover up mistakes or to minimizeembarrassment.

700 people working in a variety of jobs abouthow their bosses treated them included menand women of various ages and races in theservice industry and manufacturing fromcompanies large and small.

- Society for Human Resource Management. (n.d.). SHRMHR glossary of terms, October 17, 2005.

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Hewitt finds that Employee Engagement Higher at Double-Digit Growth (DDG) Companies.

Engage Top Management

Hewitt found that DDG companies generate higher levels ofemployee and executive engagement than SDG companies.

Source: Hewitt, Research Brief, Employee Engagement Higher at Double-Digit Growth companies: Double-Digit Growth and Engagement. 2004.

People are a key component of any company’sability to execute its strategies and achieve itsgoals. Companies who are able to better engagetheir people also deliver better businessperformance and return to shareholders.

DDG companies effectively measure and rewardcontribution and employee engagement. Effectiveleaders who are committed to growth and successare at the helm of DDG companies. These leadersare engaged, motivating, and inspiring theiremployees toward a growth mind-set. Employee Engagement at DDG Companies (63%)

exceeds average employee engagement at SingleDigit Growth Companies (SSD) by over 20%.

28% more employees at DDG companies are morelikely to have confidence in their organization’s futurebusiness direction, and to feel that the company ispositioning itself for future growth.

When looking across all companies, executives’engagement levels are 25% higher than for otheremployees. In DDG companies, however, executiveengagement levels are 33% higher than for otheremployees – this manifests itself in how leadersspeak about the company and their confidence in thefuture.

DDG companies have 39% more employees who arehighly engaged, thus contributing even more to thecompanies success. Conversely, DDG companiesalso have 45% fewer highly disengaged employeeswho often drain the company’s ability to performeffectively.

DDG companies demonstrate higher levels ofengagement as tenure increases.

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Continuous Training & Development

40 hours of training a year for everyemployee is recommended by The AmericanSociety for Training and Development. Thisis consistent with the emphasis employeesplace on the opportunity to grow and developboth their skills and career while employed.

Source: Susan M. Heathfield, About.com, Training: Your Investment in PeopleDevelopment and Retention, 2008.

“Organizations that invest in opportunities for growth

and learning generate significant returns on employee

retention, motivation, trust and initiative.”- Strategic Training and Development: A Gateway to

Organizational Success”, SHRM, 1st Quarter 2008. The chance for ongoing development is one of

the top five factors employees want toexperience at work.

Training that helps each employee grow theirskills and knowledge to better perform theircurrent job is appreciated as a benefit.

The inability of an employee to see progress isoften a cited reason for leaving an employer.

Learning provides the basis for personalgrowth, job expansion, and career opportunity.

Top performers are 50% more likely to linktheir learning and development strategy totheir company’s strategic plan.

Training also increases employee loyalty, andthus retention, and helps attract the bestpossible employees.

Source: Raymond Baumruk and Ted Marusarz, Employee Engagement:Insights into Why It Matters and What You Can Do About It.

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Encourage Diversity

According to diversity practitioners, the mostsuccessful outcomes that resulted fromeffective diversity management in theorganizations were:

It is important for an organization to createand maintain a work culture that fosterseffective diversity management.

Source: SHRM 2007 State of Workplace Diversity Management: A Survey Report by theSociety for Humban Resource Management, February 2008.

“New, innovative solutions must be continually

created, implemented and evaluated to find, keep and

motivate employees who require different things from

the work experience.”- “A Workforce Engagement”, WorldatWork Press, 2007.

Creating a work environment or culture thatallows everyone to contribute all that they canto the organization.

Achieving appropriate representation of racialand ethnic groups.

Enhancing the ability of people from differentbackgrounds to work effectively together.

96% of HR professionals indicated that thistype of work culture was extremely orsomewhat important for developing effectivediversity management.

75% of HR professionals believe it wasextremely important for their organizations toleverage the diverse talents of their workforce.

94% of HR professionals indicated thatenhancing their employee’s diversitymanagement skills was extremely orsomewhat important.

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Diversity Accomplishments

Source: SHRM 2007 State of Workplace Diversity Management: A Survey Report by the Society for Human Resource Management, February 2008.

When asked to whatextent theirorganization’s diversitypractices accomplishedspecific objectives:

More than half (52%)reported that theirorganization’s practiceshad created a workenvironment or culture thatallowed everyone tocontribute all that theycould to the organization toa “large extent”.

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Organization Concerns Linked with Desired Behaviors

OrganizationConcerns

DesiredEmployeeBehaviors

Teamwork

Create aCommunication

Culture

InspireLeadership

EncourageDiversity

Transfer ofKnowledge

LoyaltyTrust

Respect

ThinkCreatively

CommunicateEffectively

CompanyPride

ContinuousTraining &

Development

Focus onAchievement

TurnoverEmployeeTurnover

Cho

osin

g to

Eng

age

Employee Engagem

ent

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Concerned Behaviors Communication Incentives

Desired Behaviors

LoyaltyROI

• Turnover Turnover• Create a Communication Culture• Inspire Leadership• Continous Training and Development• Encourage Diversity

• Voluntering• Mentoring• Coaching• Longevity• Respect for Fellow Worker

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Incentives

MajorConcerns

DesiredBehaviors

Communicate

Employee Engagement

ROI

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MajorConcerns

DesiredBehaviors

Incentives

Communication ROI

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DesiredBehaviors

Major Concerns

Incentives

Comm

unica

tion

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Solution

Total Engagement Points Program:

A revolutionary program entirely designed to achieve anorganization’s goals by focusing on the drivers that impactemployee engagement.

“The answer is employee engagement or the ability to capture

the heads, hearts, and souls of your employees to instill an

intrinsic desire and passion for excellence. Engaged employees

want their organization to succeed because they feel connected

emotionally, socially, and even spiritually to its mission, vision,

and purpose.” - “Human Sigma”, John H. Fleming, Ph.D., and Jim Asplund

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Marketing Communications

Applying an employee-focused marketing communications campaign will: Create awareness and participation. Help raise more employees to a deeper level of commitment and support regarding the company’s mission, vision and core values.

Marketing communications is more than the coordination of outgoing messages between media and the consistency of themessage throughout. You must capture the attention of the employees so that they properly attribute the message to your newprogram and are motivated to participate.

Intranet

Brochures

Posters

While there are literally hundreds, if not thousands, of marketing vehicles available, the following are examples of the vehiclesavailable to help roll out a new recognition program in an effort to create awareness and excitement among employees:

Postcards

Virtual MeetingsE-mail Blasts

Paycheck Insert

Newsletters Voicemail/Broadcast

Kiosks

Meetings/Gatherings

MemosLetters

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Total Recognition Value of Partnership

Interactive Voice Response Ordering Available Extensive Web-based Gift Catalog User Friendly Ordering System Activity Order & History Statements Updateable User Profile Dedicated 800# Call Center

Recognition Portal Multiple Opportunities to be Recognized Hassle-free Return Policy 24/7 365 Availability

Online Reporting Dedicated Relationship Coordinator Local Management Vendor and SKU Management Employee Data Management & Security Fulfillment & Distribution Branded Recognition Solution

Capabilities Program Flexibility Global Supply Chain Management

Attributes Extensive Gift Selection ISO 9001 Certified SAS 70 Compliant Merchandise Guaranties Extended Warranties Proven Track Record 98% Customer Retention Rate Leader in Innovation Industry Thought Leader Award Winning Management Team High Retention Rate Ownership Commitment

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