Post on 25-May-2020
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24-25 May 2018
Getting Rewards Right – From big ideas to practical solutions
A Willis Towers Watson Modernising Total Rewards Event
2018 European Rewards Conference
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WelcomeJoris Wonders, Willis Towers Watson
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“We're not here to predict the future. We're here to help create agile organisations that can thrive in uncertainty.”
- Rowan Douglas, CBE
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Day one agenda
4
14:15 – 15:15: Getting Rewards Right – Why It Matters for Your People and Your BusinessAndrew Bates, GSK with Chantal Free and Amol Mhatre, Willis Towers Watson
15:15 – 15:45: Coffee break and networking
15:45 – 16:35: Breakout sessions (choose one of four)See descriptions in your conference brochure
17:05 – 17:55: Breakout sessions (choose one of four; repeat sessions)See descriptions in your conference brochure
19:00 – 19:30: Pre-dinner drinks in the Foyer19:30: Dinner begins in the Ballroom
16:35 – 17:05: Coffee break and networking
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Time to talk: discuss today’s total rewards hot topics during breaks
5
Join our subject-matter experts and peers in the networking corners
EQUAL PAYTamsin SridharaMichelle Ryan Joris Wonders
JOB LEVELLING AND ARCHITECTURE
Ralph LeyssensRuchi Arora
SHAREHOLDERS’ RIGHTS DIRECTIVE
Piia PilvSven Slavenburg
Noemie Tack
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Check out our HR Software booth to view a demo of Willis Towers Watson Compensation Software and Market Data
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Getting Rewards Right – Why It Matters for Your People and Your Business
An interview with Andrew Bates, GSK and Chantal Free, Willis Towers Watson
Facilitated by Amol Mhatre, Willis Towers Watson© 2018 Willis Towers Watson. All rights reserved.
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Day one agenda
7
14:15 – 15:15: Getting Rewards Right – Why It Matters for Your People and Your BusinessAndrew Bates, GSK with Chantal Free and Amol Mhatre, Willis Towers Watson
15:15 – 15:45: Coffee break and networking
15:45 – 16:35: Breakout sessions (choose one of four)See descriptions in your conference brochure
17:05 – 17:55: Breakout sessions (choose one of four; repeat sessions)See descriptions in your conference brochure
19:00 – 19:30: Pre-dinner drinks in the Foyer19:30: Dinner begins in the Ballroom
16:35 – 17:05: Coffee break and networking
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Breakout sessions begin at 15:45
8
Sales Incentives after a Merger: How TelenetHarmonised Sales Compensation for Customer FocusStudio 2
Modernising Rewards at Allied Irish Bank: How Getting the Basics Right Drives Talent and Culture ChangeStudio 1
A Software-Enabled Journey at Müller Service GmbH: Modernising Market Analysis & Compensation DesignStudio 4
Total Rewards Strategy at Maersk: Giving Employees a VoiceStudio 5
All sessions repeat during second
breakout session
© 2018 Willis Towers Watson. All rights reserved.
willistowerswatson.com© 2018 Willis Towers Watson. All rights reserved.
24-25 May 2018
Getting Rewards Right – From big ideas to practical solutions
A Willis Towers Watson Modernising Total Rewards Event
2018 European Rewards Conference
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Day Two WelcomeChantal Free, Willis Towers Watson
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Day two agenda
11
08:30 – 09:00: Day one recap and day two introduction Chantal Free, Willis Towers Watson
09:00 – 10:00: General session – TED-style talksLed by Willis Towers Watson experts
10:00 – 10:10: Transfer
10:10 – 11:00: Day two breakout sessions (choose one of four)See descriptions in your conference brochure
11:00 – 11:30: Coffee break and networking
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Day two agenda (cont.)
12
12:20 – 12:30: Transfer
13:15 – 13:30: Closing remarksJoris Wonders and Chantal Free, Willis Towers Watson
13:30 – 15:00: Lunch
11:30 – 12:20: Day two breakout sessions (choose one of four; repeat sessions)See descriptions in your conference brochure
12:30 – 13:15: The Evolved Organisation and Future of Total RewardsJohn Bremen, Willis Towers Watson
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Today’s TED-style talks
The Evolving Career Framework: Are Agile and Teal Organisations the End of Jobs as We Know It?Ralph Leyssens and Ruchi Arora
Corporate Governance and the Shareholders’ Rights Directive –What You Need to Know (and Do)Sven Slavenburg and Piia Pilv
Modernising Benefits for a New World of WorkAmol Mhatre
Fair Pay: From Compliance to OpportunityJoris Wonders and Tamsin Sridhara
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The Evolving Career FrameworkAre Agile and Teal Organizations the End of Jobs as We Know Them?
Ralph Leyssens and Ruchi Arora, Willis Towers Watson
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Cause between dream and action there are laws, and practical objections…
Willem Elsschot, The Marriage
“
“
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Want tussen droom en daadstaan wetten in de weg enpraktische bezwaren…
Willem Elsschot, Het Huwelijk
“ “
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More Ways to Get Work DoneConventional Ways of Work
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Time to reach 50 million users
Telephone
Radio
TV
Internet
Angry Birds
75 years
38 years
13 years
4 years
3.5 years
35 days
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The Emerging “Robo-gig” EconomyTechnology, digital media and robotics are transforming Work and Jobs
Sources: Digital Media & Society, World Economic Forum in collaboration with Towers Watson; Towers Watson Research; also reference McKinsey & Co
A truly connected world
collaboration…
Hum
an & m
achine
Social & OrganizationReconfiguration
All inclusive
Glo
bal T
alen
t Mar
ket
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Corporate Governance and the Shareholders' Rights Directive: What You Need to Know (and Do)Sven Slavenburg and Piia Pilv, Willis Towers Watson
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Shareholder pressure starts in the Netherlands in the 1600s...
26
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…has followed major economic crashes ever since
27
First shareholder actions contesting executive bonuses
First newspaper articles on excessive pay levels
Tax rules for base salaries in the US lead to growth in LTIs
Shareholders demand more accountability and regulation as share prices slide
Regulation of pay in financial services companies
EU SRD2007-2017Financial crisis, economic stagnation
1990-2000Internet bubble bursts in 2000
1920-1940Great depression
1900 -1920Start of annual bonus plans
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Policy Vote
Report Vote
EUD SRD introduces Say on Pay vote in all EU member states leading to…
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Transparency of variable pay targets
Are our pay-outs defendable?
Increased remuneration disclosureCEO pay ratio?
Investor viewsConvergence to new market norm?
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…further scrutiny on pay and pay-for-performance alignment
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Preparation is starting in 2018
2020Shareholder voting
2019Year of implementation
2018Year of review
30
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Modernizing Benefits for a New World of WorkAmol Mhatre, Willis Towers Watson
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Definition*
*Oxford English Dictionary
modernize(British modernise)
VERB[with object]
adapt (something) to modern needs or habits, typically by installing modern equipment or by adopting modern ideas or methods.
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Why modernize benefits?
Benefits matter – employees want core protection and choice
Health and financial well-being are important for a productive workforce
Costs of benefits are a growing concern
Companies are mostly focused on redesigning their plans
Local leadership and external benchmarking drive decisions
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Modernizing benefits: How companies design, deliver and manage an optimal portfolio
Dimension Modernization Objectives
Benefits program Design an optimal benefits portfolio in line with objectives, market norms and employee preferences.
Financing Optimize the financing cost of benefits by allocating costs and risks efficiently.
Employee Interface and Experience
Enable employees to make informed decisions about their benefits and increase employee appreciation.
Administration and Operations
Efficiently administer benefits by leveraging technology and allocating organisation resources.
ProgramManagement
Use data-driven insights to govern strategic benefits related decisions.
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Fair Pay: From Compliance to OpportunityTamsin Sridhara and Joris Wonders, Willis Towers Watson
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36
Last time we met
Image: sewing machinists from Ford’s Dagenham plant striking for over sex discrimination in job grading in 1968. Equal Pay Act followed in 1970 © 2018 Willis Towers Watson. All rights reserved.
What “personal” feels like
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UK gender pay: what was said, what was heard
Gender PayEqual Pay
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It’s about pay It’s about progression
39
The common questions
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Do we have equal pay?
How do we build greater talent diversity?
40
Do we have equal pay?
Audit
Pay managementPay infrastructure
Pay increases
AmendmentsAssurance
Immediate and longer-term actions
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41
How do we build greater talent diversity?
Analyse
Track
Persist
Listen
Identify
Immediate and longer-term actions
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Where is this leading?
Pay fairness Talent diversity Organisation culture
Living wage Equal pay | Gender pay
Executive: Employee equity Diverse talent
42
GROUP – OWN
LOCAL – COMPLY
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Day two agenda
43
08:30 – 09:00: Day one recap and day two introduction Pierangelo Scappini, Poste Italiane SpA with Chantal Free, Willis Towers Watson
09:00 – 10:00: General session – TED-style talksLed by Willis Towers Watson experts
10:00 – 10:10: Transfer
10:10 – 11:00: Day two breakout sessions (choose one of four)See descriptions in your conference brochure
11:00 – 11:30: Coffee break and networking
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Day two agenda (cont.)
44
12:20 – 12:30: Transfer
13:15 – 13:30: Closing remarksJoris Wonders and Chantal Free, Willis Towers Watson
13:30 – 15:00: Lunch
11:30 – 12:20: Day two breakout sessions (choose one of four; repeat sessions)See descriptions in your conference brochure
12:30 – 13:15: The Evolved Organisation and Future of Total RewardsJohn Bremen, Willis Towers Watson
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Breakout sessions begin at 10:10
45
Creating Competitive Local Employee Benefit Programs at OntexStudio 2
Executive Pay-for-Performance at Heineken: Setting Robust Targets Using Predictive AnalyticsStudio 4
Compensation and Benefits Harmonisation at ASML: Making Rewards Work in an M&A IntegrationStudio 1
Evolving Reward and Maintaining Engagement in a Co-Ownership Model at John Lewis Partnership Studio 5
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All sessions repeat during second
breakout session
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The Evolved Organization: The Future of Total Reward is HereJohn M. Bremen, Willis Towers Watson
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“Without a sense of purpose, no company can achieve its full potential…[and] will provide subpar returns to investors…”
— Larry Fink, BlackRock, 2018
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Source: Blackrock Larry Fink’s Annual Letter to CEOs, 2018
An Evolving Mindset…
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The Future isn’t coming…It’s here
48
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“We’re not here to predict the future. We’re here to help agile organizations that can thrive in uncertainty.” - Rowan Douglas, CBE (Willis Towers Watson)
So it's official: Facebook is now the world's
largest country
Source: eonline news
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The number of text messages sent and received in one day
exceeds the populationof the planet
Source: wikipedia.com.
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Number of jobs created for every one lost due to the internet:
Source: eonline news
2.6
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The number of independent professionals, or freelancers, in
the EU rose by 24% from 7.7 million to 9.6 million between
2008 and 2015
Source: Staffing Industry Analysts
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54% of EU jobs at risk of computerization
Source: Bruegel.org
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Baby Boomers areretiring at the rate of one every 9 seconds
between now and 2029
Source: USA Today Money
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Millennials accounted for 24%of the adult population in the EU
in 2013
Source: Pew Research
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Generation Z is entering the workforce in large
numbers
Source: wsj.com
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Percent of children entering school today who will end up in
jobs that do not exist yet65%
Source: Scott McLeod and Carl Fisch, quoted by World Economic Forum Future of Jobs Report, Davos, 2016
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85% of jobs that will exist in 2030 haven’t been invented yet
Source: Huffington Post.
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Modernizing HR and the Evolved OrganizationWhat matters to today’s forward-thinking CHRO…
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Technology-driven cultural transformation
Wea
rabl
es Creating the enterprise-wide leader
Deconstruction of work
Stability vs. Agility
Technology implications on human behavior
Psyc
hom
etric
sDisruption of technology on talent markets
Creating global community in virtual environment
Speed to performance
#AGILEHR
Future of Work. Future skills.Outcome thinking
Productivity optimizationHarnessing new Talent
Speed to innovation
Artificial IntelligenceSustainable talent platforms
Org
aniz
atio
nal C
hang
e
Adept at rewiring
Team collaboration, ideation, and incubation
Speed/agility of making “new” happenData privacy and security
Talent Philosophy
machine learning
Process simplification
VUCA World
Robotics
Enabling new behaviors
Learning orientation
Soci
al m
edia
DESIGN THINKING
the career journey Psychological Safety Augmented reality
Per
sona
lizat
ion
60
The VUCA world continues…even more so…
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We need:
VUCA: Judith Hicks Stiehm & Nicholas W. Townsend, The U.S. Army War College: Military Education in a Democracy; Temple University Press, 2002.1. Denise Caron, CTO Next IT.2. Bob Johansen, Distinguished Fellow, Institute for the Future.
“The kind of strategy that works is to be very clear about where you are going but very flexible in how you get there2
“Volatile… a rapid rate of change
Uncertain… unclear about future implications
Complex… multiple competing/conflicting forces
Ambiguous… lack of clarity about what events will mean — even as they occur
Clear intentClear directionClear visionAgility to adapt to a changing world1
61
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Conflicting Forces on HR…
62
Impacton HR
Technologyand
Digitization
Employeeas the
Consumer
The TalentExperience
SkillShortages
PoliticalShifts andRegulation
EmployeeWell-Being
&Purpose
Roboticsand AI
GenerationalShifts
HumanCapital Risk
Modernization
VolatileUncertainComplex
Ambiguous
Work andJob Scarcity
New MarketEntries
Talent aspirations have changed…and so have the risks
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Then NowReally Now
Yet, talent aspirations today translate far beyond just flexiblework arrangements
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Later Career Talent Earlier Career Talent
Live to work Work to live
Individualachievement Group oriented
Corner office Flexible schedules
Prestige Giving back
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The Evolved Organization
65
Exponential advances in technology’s capabilities, reshaping the ecosystem of the workplace
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The Evolved Organization
67
Organization Evolution
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Source for Distributed Network Organization: Paul Baran, Rand Corporation, 1964
Small Groups(unaffiliated)
Small Groups(locally affiliated)
LeadershipHierarchy
Functional Hierarchy/
Bureaucracy
Network(Paul Baran)
Tribal/Nomadic Coalition Command-and-Control
Industrial Distributed
Tight/Isolated Tight/Isolated Controlled Specialized Dynamic/Agile
Optimizing their assets and modernizing their approach
Evolved organizations connect the dots while coloring outside of the lines…
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Leadership
Pace, agility, and adaptation to change
Culture of innovation
Employee Well-being and purpose
Growth Mindset
Talent – and the talent experience
Work and way of getting work done
Organization
Total Rewards
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“The rate of internal change needs to exceed the rate of external change”
The traditional career path is making way for a portfolio of broad and nonlinear work experiences
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Evolved organizations… Offer a wider array of professional
development opportunities
Embody agile thinking, interpersonal and communication skills and digital adaptation — skills that are necessary for the changing nature of work
Prepare and promote talent that will evolve in parallel with that of the organization
The Evolved Organization is built within a different type of ecosystem: transforming culture and pace by embracing attributes that focus on the work and talent experience
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DIGITAL
AGILITY COLLABORATION EMPATHY
IDEATION
IMPACT
INNOVATION
HEALTHY
INSPIRATIONAL LEADERSHIP
LEADERSHIP CULTUREPERSONALIZATION
RESPONSIBILITY
RISK TOLERANCE
WELL-BEING
“Believe more in yourself and your capabilities. Don’t be afraid to fail. And don’t constantly worry that you have to prove yourself.” — Bridget Paradise, CHRO, Citadel, in Slate
…and redefining what culture, purpose and values mean in the process
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“The essence of inclusion is to help each of us to develop more compassion and understanding so we can all be more effective.” — Myrna Chao, I&D Thought Leader, Willis Towers Watson
PSYCHOLOGICAL SAFETY
ACCOUNTABILITYOPEN-MINDEDNESS
INCLUSION & DIVERSITY
SOCIAL WELL-BEING
VULNERABILITYRESPECT
CHOICE
#LIVINGOUTLOUD
COMPASSION GROWTH MINDSET
INTERDEPENDENCE
CONVERGENCESPIRITUALITY
HOLISTIC THINKING
TAKING RISK
EMPOWERMENT
Google identified that psychological safety
was the most critical factor to making a team work
Source: Harvard Business Review, 2016
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Psychological Safety
What is psychological safety?“A shared belief held by members of a team that the team is safe for interpersonal risk-taking and a feeling of confidence that a team will not embarrass, reject or punish someone for speaking up”
Source: “Psychological Safety and Learning Behavior in Work Teams”by Amy Edmondson
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How do we measure it?• Pulse/engagement surveys • Glass door comments• Virtual focus groups• 360 surveys
Psychological safety in the headlines…
Why psychological safety mattersIt directly links to business results by: Increased innovation and creative problem solving
in teams Enhanced attraction and retention More effective managers and teams Increased employee engagement Direct contribution to a more inclusive workplace
1 in 3 employees are not sure if is safe to speak up at work (Source: WTW US National Norm)
74
Attributes of the Evolved Leader
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Agile in adapting to uncertainty
Willing to challenge the status quo (and get bruised in the process)
Have a tolerance for risk/failure
Recognize and respect
Inspire, impact, and leadwith purpose
Leaders who are relentless in their drive to change will influence the way employees think, the pace in which cultures evolve, and the way in which work gets done.
Source: Willis Towers Watson CHRO Thinking Ahead Group
Purpose-driven companies outperform the market by
42%
Source: DDI, EY, Conference Board Global Leadership Forecast 2018
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What are the Implications for Total Reward
77
Total Reward is no longer just about competitive practice and design…optimization and the talent experience are essential
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Focus on being a workforce data/analytics expert (and understanding talent as consumers) as much as technical expert
Focus on career journey (horizontaland vertical), as opposed to path
Focus on new skills (agility, digital, communication/translation, global deployment)
Focus on linkages between Total Rewardand talent well-being
Move from rigid to inspired, from risk averse to speed2talent, innovation, and growth mindset
Enable organization purpose and instill continued healthy company values through culture
Instill evolved mindset through flexibility, personalization and leadership culture
Evolved organizations understand what it means to optimize their Total Reward spend
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50%
9%
7%3%
15%
4%6%
Base PayBonusRetirementDentalMedicalRecognitionOther
What is the best level ofinvestment in employees?
What is the best allocation of that investment to maximise
desired behaviours(e.g., retention, motivation)?
Do the answers vary by organization level, geography, business unit, other demographic characteristics?
Total Investments in Selected Rewards
Optimize
Total Reward remains an integral component of the Talent ExperienceBut needs to function in the context of the four fundamental dimensions
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tXTalent
Experience
Talent Experience
Doing great work in athriving organization
Do I enjoy the work I do? Am I able to deliver what you want?
Individual growth and reward opportunities in return
Do the rewards motivate? Do I understand how they work?Where’s my career going?
A strong sense of purpose
Do I believe in where you are going? Do I know how I support that?
Connection with greatpeople and leaders
Do leaders inspire me? Do diversity and culture enable
high-performing teams?Will I be working with great people?
71%
51%
Engagement: Increase employee engagement in health and well-being
Employee experience: Enhance the technological and physical environment around your health care and well-being programs
The majority of employers are seeking to improve the consumer experience
Source: 2017 Willis Towers Watson Benefits Trends Survey, Western Europe.
Importance over the next three years (‘% of ‘Very important’ or ‘Important’)
A majority of employers consider engagementand consumer experience to be a priority over the next three years*:
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Talent Experience
Offer choice in health benefit options 50%
Offer choice and variety in the types of benefits 49%
Provide employees with greater flexibility to direct employer-provided benefit payments 43%
To what extent will the following be important to
enhancing member experience with your
health care benefits over the next three years?
Goal is a personal, social, consumer-grade experience
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What’s in it for me and others? Which outcomes are the best for me?
The team? How does it impact positive outcomes?
How do my benefits work? How can I save money? How am I getting/giving feedback?
Talent Experience
This stuff actually works….Best practice companies achievebetter outcomes
Talent Experience
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3xas likelyto report employees are highly engaged
93%more likelyto report significantly outperforming their industry peers financially
10%less likelyto report difficulty attracting and retaining key employees segments
27%fewer regrettable new hires in the first year
17%lower voluntary turnover
Well-being has emerged as a broader strategic principle for both mainstream and evolved organizations
79%Differentiate our health and
well-being from other organizations with which we compete for talent, customize for critical workforce segments
PHYSICAL
Identify and effectively manage population health
risks and chronic conditions across the workforce
63%
EMOTIONAL
Identify and manage stress and behavioral health issues across
the workforce
70%
FINANCIAL
48%Improve financial well-being and retirement readiness
SOCIAL
Increase focus on creating social connections in communication (stories, examples etc.) or look to build a culture of health and well-being in the workplace to encourage healthy behaviors in the next three years
62%
Source: 2017 WTW Benefits Trend Survey, Western Europe.Note: Percentage responding ‘Very important’ or ‘Important’.
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Percentage of companies that say these components of well-being are important over the next 3 years
84
Well-Being
Employees’ financial concerns are on the rise
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Source: 2017 Global Benefits Attitudes Survey, Western Europe; 2017 Benefits Trends Survey, Western EuropeEmployer sample: Companies with at least 1,000 employees. Employee sample: Full-time employees.
have become a more important issue for employees over the last two or three years
(% of ‘Strongly agree’ or ‘Agree’)
55% 55%Employer Employee
53% of employers agree to take an active role in encouraging employees to better manage their personal finances
85
Well-Being
Financialconcerns
Over one-third of households in Western Europe are living paycheck to paycheck
Live paycheck to paycheckNo significant savings
Strongly agree or agree37%
Lack of financial resilienceCould not come up with $2,000 if an unexpected need arose within the next month
Could certainly not or probably not33%
Financial Well-Being Hierarchy
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Equity (LTI) Retirement DB DC Healthcare/wellness Compensation Training LTD HSA Career opportunities
Total Rewards DriversFinancialIndependence
Wealth Creation
Long-Term Savings
Short-Term Savings
Positive Cash Flow
Debt Control
Solvency
Non-Poverty
Financial Literacy
Well-Being
Financial worries and health
issues
Financial worries and no health
issues
No financialworries andhealth issues
No financial worries and no health issues
42% 14% 25% 19%
Highly engaged 22% 34% 36% 46%Disengaged 35% 28% 25% 15%
Absence (days) 8.2 3.2 5.6 2.3Presenteeism (days) 13.3 15.0 13.8 10.3
Expect to work past 70 20% 19% 9% 9%High stress 59% 47% 32% 26%
Financial satisfaction 31% 43% 63% 73%Live paycheck to paycheck 51% 51% 21% 17%
Financial well-being, health and stress are interconnected and issues compound
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Note: Employees with health issues has either fair, poor or good health in general.Source: 2017 Global Benefits Attitudes Survey, Western Europe.
87
Well-Being
43%
59%
73%
62%57%
38%
23% 26% 25%
44%
54%
65% 68%
2004 2006 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Employer confidence in offering health care benefits over the next 10 years continues to growHow confident are you that your organization will continue to sponsor health care benefits to active employees in 10 years? (Very confident)
Sample: Employers with at least 1,000 employees.Note: Responses represent “Very confident.” Years 2004-2017 are based on prior years of the survey. Source: 2018 Willis Towers Watson Voluntary Benefits Survey; Willis Towers Watson Best Practices Survey, various years; Willis Towers Watson Emerging Trends Survey, 2018
5-Year Confidence: 96% very confident, that the organization will continue to sponsor health care benefits in five years.
Well-Being
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Top benefits priorities over the next three years
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Source: 2017 Benefits Trends Survey
Western Europe
Central & Eastern Europe Middle East Africa Asia Pacific Latin America
Manage benefit costs
better
Managebenefit costs
better
Information in one place
Greatergovernance
and oversight
Managebenefit costs
better
Managebenefit costs
better
Influence employee behaviors
Information in one place
Managebenefit costs
better
Managebenefit costs
better
Influence employee behaviors
Influence employee behaviors
Information in one place
Greatergovernance
and oversight
Greatergovernance
and oversight
Influence employee behaviors
Greatergovernance
and oversight
Greatergovernance
and oversight
Transparency of benefit
costs
Simplify administration
Transparency of benefit
costs
Information in one place
Information in one place
Information in one place
Greatergovernance
and oversight
Influence employee behaviors
Influence employee behaviors
Transparency of benefit
costs
Simplify administration
Health & well-being
programs
1
2
3
4
5
Well-Being
Strategy navigator framework to modernize benefits Items for consideration
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Benefits Program Financing Employee Interface and Experience
Administration and Operations
Program Management
Optimal portfolio of benefits
Efficient financing of cost and risk
Employee engagement & appreciation
Operational efficiency Data-driven decision-making
Voluntary benefits for
flexibility and choice
Core protection & top up/down
Operating cost management
Risk retention & captive strategy
Risk transfer
Talent value proposition
Employee communication
Education and decision-making
support
Automation & technology for administration
Resource optimization
Participant data analytics & reporting
Market alignment of
benefits Purchasing scale leverage
Program analytics & reporting
Data management
Vendor & advisor management
Governance
Compliance
Wellbeing
Cost sharing
Self-service
Customer support
Operational policies and procedures
Well-Being
Getting to now… The required new skill sets and capabilities [for the future]
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Digital Skills
0%
10%
20%
30%
40%
50%
60%
70%
Total Americas APAC MEA Europe
Digital business skills
Ability to work virtually
Understanding of corporate IT
Digital design skills
Ability to use social media and web 2.0
Agile Thinking
0%
10%
20%
30%
40%
50%
60%
70%
Total Americas APAC MEA Europe
Ability to consider and prepare for multiple scenarios
Innovation
Dealing with complexity and ambiguity
Managing paradoxes, balancing opposing views
Ability to see the “big picture”
Source: Global Talent 2021 Study conducted by Oxford Economics and Towers Watson, 2012.
91
New Skills
Getting to now… The required new skill sets and capabilities [for the future]
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Interpersonal and Communication Skills
Global Skills
Source: Global Talent 2021 Study conducted by Oxford Economics and Towers Watson, 2012.
0%
10%
20%
30%
40%
50%
60%
TOTAL Americas APAC MEA Europe
Co-creativity and brainstorming
Relationship building (with customers, partners, government, etc.)
Teaming (including virtual teaming)
Collaboration
Oral and written communication
0%
10%
20%
30%
40%
50%
60%
TOTAL Americas APAC MEA Europe
Ability to manage diverse employees
Understanding international markets
Ability to work in multiple overseas locations
Foreign language skills
Cultural sensitivity
92
New Skills
New jobs are emerging…However a number of current baseline skills will continue to be relevant
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MYTHWorkplace automation will have a largely negative impact on workers and jobs.
BUSTEDAutomation will result in new combinations of work, talent, skill requirements and work relationships (e.g., FTE, PT, contingent).
AI EthicsEvaluator
RobotTrainer
Virtual Culture Architect
Data, Talent &AI Integrator
Cyber Ecosystem Designer
The top 10 skills that will be in demand by all employers by 2020
Source: Future of Jobs Survey, World Economic Forum, January 2016Source: CHREATE Consortium
10 Cognitive flexibility
9 Negotiation skills
8 Service orientation skills
7 Judgment & decision making
6 Emotional intelligence
5 Coordinating with others
4 People management
3 Creativity
2 Critical thinking
1 Complex problem solving
New Skills
The Evolved CHRO: Chief employee experience officer
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Personnel director Tactical Operationally focused Employee as cost Implement programs Local Manager/director level
Vice president, HR Broader Organization focused Employee as resource Design programs National Vice president level
CHRO Strategic Business focused Employee as asset Direct programs Global C-suite level
Chief employee experience officer Futurist/strategist Differentiation focused Employee as value Transcend programs Borderless Board advisor
New Skills
The Evolved CHRO: Chief employee experience officer
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New Skills
CHRO
“I direct programs to balance the needs of employees, the company and shareholders.”
Chief employeeexperience officer
“I create an employee experience that unleashes the potential of our talent to create
incremental value for our customers and shareholders.”
Using “big data” and workforce analytics strategically
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Causal Analysis/ Controlled Evaluation
Projections/ Future-State Modeling
Trending
Bench-marking
ExternalReference Point
Directional Insight Future Risk Management
Outcome Optimization
Return on Investment
How are we performingrelative to benchmarks?
Foundational
Analytical Sophistication
How are we performing over time?
How do we predict performance?
How do we drive performance?
How are weperforming today?
InternalTracking
Dashboard/ Metrics
Reporting
Global Data Warehouse
How do we access data to monitor performance?
Data Management
96
Workforce Data/Analytics
The HR time spend continues to morph…
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0%
25%
50%
75%
100%
1950 1960 1970 1980 1990 2000 2010 2020 2030 2040
Operations Program Design Employee Analysis
Percent of Time
Workforce Data/Analytics
Top Ten Total Reward themes
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Evolved Mindset
.
.
.
Future FocusedEmerging work dynamics and skills and multi-generational workforce re-write the deal
Technology Advancements Expansion of digitization ofthe Total Rewards deliveryand experience
Good GovernanceBeing agile and nimble to adaptto changing, fast-movingbusiness strategies
Analytics & InsightsEvaluating what matters with Total Rewards analytics and data measurement
SegmentationMore tailored Total Rewards with increased choice for workers
Pay TransparencyLegislative and social mediaincrease public scrutiny
Expansion of worker choiceand voluntary benefits
Consumerism & Flexibility
Renewed focus on financial security now and in the future
Financial Concerns
Talent Experience Emphasis on workplace differentials that enhance the environment and Talent Value Proposition
Well-beingContinued focus on holistic physical, financial, social and emotional health
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Becoming an #evolved
organization
Evolving the journey with your organization
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8 Empower HR to be a catalyst for evolving the organization
7 Invoke a leadership culture resonate of empathy, authenticity, responsibility, respect, talent recognition, and risk-acceptance
6 Enable organization purpose and instill continued healthy company valuesthrough culture
5 Move from rigid to inspired, from risk averse to speed2talent, innovation, andgrowth mindset
4 Focus on linkages between Total Rewards, the talent experience and total well-being
3 Leverage workforce data/preferences to respond to employee choice, consumerism and personalization
2 Focus on the career journey (horizontal and vertical), as opposed to path
1 Focus on new skills (agility, flexibility, digital, communication/translation,global deployment)
8 Empower HR to be a catalyst for evolving the organization
7 Invoke a leadership culture resonate of empathy, authenticity, responsibility, respect, talent recognition, and risk-acceptance
6 Enable organization purpose and instill continued healthy company valuesthrough culture
5Focus on linkages between Total Rewards, the talent experience and total well-being
3 Leverage workforce data/preferences to respond to employee choice, consumerism and personalization
2 Focus on the career journey (horizontal and vertical), as opposed to path
1 Focus on new skills (agility, flexibility, digital, communication/translation,global deployment)
8 Empower HR to be a catalyst for evolving the organization
7 Invoke a leadership culture resonate of empathy, authenticity, responsibility, respect, talent recognition, and risk-acceptance
6 Enable organization purpose and instill continued healthy company valuesthrough culture
5Focus on linkages between Total Rewards, the talent experience and total well-being
3 Leverage workforce data/preferences to respond to employee choice, consumerism and personalization
2 Focus on the career journey (horizontal and vertical), as opposed to path
1 Focus on new skills (agility, flexibility, digital, communication/translation,global deployment)
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Thank you!
John Bremen
John.Bremen@willistowerswatson.com
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Closing remarksJoris Wonders and Chantal Free, Willis Towers Watson
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