ABC: Achievement-Based Compensation

Xerox employs an incentive compensation plan referred to as Achievement-Based Compensation (ABC) as a motivational payment program for our people. It’s a compensation strategy that achieves long-term goals by setting short-term objectives.ABC is a variable-pay system built into an employee’s base pay. It hinges on achievement of specific metrics. Employees are paid according to how well they deliver on the immediate needs of the client and the company.

An exceptional Pay-for-Performance solution, ABC:

• Rewards individual performance – Quality, efficiency and productivity

• Is not a bonus or commission plan• Rewards positive employee behaviors

– Increased pay for self-starters and independent thinkers.

ABC is our most powerful employee retention tool. With its self-managing nature, it attracts and retains the brightest people and best workers.

Quality and Quantity, Hand in HandWe’re proud of the measurable benefits ABC delivers to our clients. In one data capture unit, an ABC implementation resulted in a 21 percent increase in production and a 98 percent quality measure. In a customer care center, absenteeism was reduced from 13 percent to three percent soon after ABC was introduced.

The ABC system works so well because employee compensation is tied directly and immediately to the quality and quantity of their performance. Typically, quality standards are tiered with a percentage attached to each level.

Win-Win-WinABC creates an immediate win-win-win solution:

Employees Win. Employees who focus on their work typically become high performers. They’re rewarded with higher pay that’s competitive in the job market, so they’re more satisfied with their jobs.

You Win. You receive higher-quality, lower-cost work, completed by highly motivated employees who:

• Exhibit correct behaviors • Treat clients well• Provide quality service• Ensure client satisfaction.

We Win. When employees and clients are satisfied, investment in the company increases. This is a clear win for shareholder value.

©2012 Xerox Corporation. All rights reserved. Xerox® and Xerox and Design® are trademarks of Xerox Corporation in the United States and/or other countries.

Xerox Prime Contract VehiclesCIO-SP3 – Government-Wide Acquisition Contract

GSA 36 (GS-03F-0015V) – Imaging and Mailroom Services

GSA 70 (GS-35F-0278W) – IT Professional Services

GSA 70 (GS-35F-0325V) – IT Professional Services

GSA MOBIS (GS-02F-0167N) – Course Development & Test Admin

CMS CCO – Call Center Operations

CMS MIC Review of Provider – Medicaid Integrity Data Analysis

We are also a subcontractor on several department and agency specific contract vehicles covering Civilian, Defense, and Homeland Security. Numerous QMS, security and industry-recognized certifications and compliance to include: FISMA, FISCAM, SSAE16, CMMI Level 3, ISO 20,000, Lean Six Sigma, ITIL v3, and PCI.

Achievement-Based Compensation

About XeroxXerox is the world’s leading enterprise for business process and document management. Its technology, expertise and services enable workplaces to simplify the way work gets done so they operate more effectively and focus more on what matters most: their real business. Xerox offers business process outsourcing and IT outsourcing services for commercial and government organizations. The company also provides extensive leading-edge document technology, services, software and genuine Xerox supplies for graphic communication and office printing environments of any size.

You can learn more about us at www.xerox.com/federalsolutions.

Our Benefits to You• Improves Productivity• Reduces Call Center Handle Time• Improves Quality Scores• Eliminates SLA Penalties• Increases Employee Satisfaction• Reduces Attrition and Absenteeism• Reduces Overall Labor Costs• Reduces Supervision and Coaching Time• Enables Use of Home-Based Employees• Increases Customer Satisfaction

Our MetricsWe maintain a dedicated ABC Oversight Team whose sole focus is to implement and improve upon ABC programs across the company. We use proven standards and best practices to implement this highly successful program. In studies conducted by the ABC Oversight Team, benefits realized were on average:

• 6.6 percent increase in transaction volumes• 30 percent reduction in FTEs• 26 percent reduction in total monthly

compensation• 30 percent reduction in average cost/unit• 19 percent increase in average

compensation/FTE

Recognition• #1 Best Performing BPO Providers, Global

Services 100• #1 Gartner’s Top BPO Vendors, Multiple

Processes• #2 Gartner’s Top 10 HR BPO Vendors,

Worldwide• #3 InformationWeek 500 List of Leading

Business Technology Innovators• Leader on Gartner’s Data Center Outsourcing

Magic Quadrant

You can learn more about us at www.xerox.com/federalsolutions.