Brexit talent and rewards survey results

Survey Results Webcast – 2 March 2017

BREXIT

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Brexit Talent and Rewards Survey

© 2017 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson client use only. 2

Presenting today

Richard Veal

Phone: +44 17 3727 4634

[email protected]

Martin Emmerich

Phone: +49 89 51657 4830

[email protected]

Tamsin Sridhara

Phone: +44 20 7170 2914

[email protected]

mailto:[email protected]



Immediately after Brexit clients told us that talent issues had

become more important

© 2017 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 3

Source: WTW Brexit Compass Survey (July 2016)

Not applicable responses removed

Which people issues have become more a priority as a consequence of Brexit

(% of respondent companies)

Mobility

55%

Critical skills

42%

Employee engagement

42%

Business choice

Since then, market volatility has created immediate issues and we

have greater clarity of the UK Government’s position


UNKNOWN

₤

Limitation on

movement Sterling

FTSE Restrictions on

freedom to trade

Business as usual

Change course

Market volatility Brexit terms

June 2016 March 2019March 2017

5

Brexit’s impact seven months on

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Brexit … seven months on


Almost 3-in-5 organisations expect their business in the UK will be significantly

affected by Brexit, but are less worried than in July 2016

Note: Very or extremely significant impact

Source: WTW Brexit Talent and Rewards Survey (July 2016 & February 2017)

UNITED KINGDOM EUROPE (excl. UK)

What do you think the impact of Brexit will be for your business in the UK?

Percentage significant or very significant

62%

SEVEN MONTHS ON

58%

July 2016

February 2017

71% 45%

July 2016

February 2017

4% 26%

Brexit … seven months on

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Brexit is being increasingly seen as just another disruption to be navigated

To what extent is Brexit another disruption to be navigated as part of the normal course of

business or a fundamental challenge to the way you do business?

ANOTHER DISRUPTION

NEUTRAL

FUNDAMENTAL CHALLENGE

62% 10%

28%

United Kingdom

59%15%

26%

Overall

52%28%

20%

Europe (excl. UK)

Source: WTW Brexit Talent and Rewards Survey (February 2017)

SEVEN MONTHS ON

Talent management is the biggest HR issue arising from Brexit



HR CHALLENGES

9

Preparing for change: A focus on

talent


Talent attraction and retention, and staff mobility have become more important


But the focus of concern has shifted compared to 2016

Have the following talent issues become more or less of a priority for your organisation in

response to Brexit and the resulting market uncertainty? Percentage more or much more

37%

32%

16%

33%

30%

TALENT

Mobility

Attraction &

Retention

Attraction and retention of EU

nationals with specific skills into the

UK

Attraction and retention of sufficient

number of staff within the UK to

meet business needs

Attraction and retention of UK

nationals in the rest of the EU

Mobility of senior staff between the

UK and the rest of EU

Mobility of other staff between UK

and rest of EU


32%

31%

11%

26%

26%

United

Kingdom

Europe

(excl. UK)

Nearly half of the companies have or planning to review talent needs and

resourcing in the UK and a third their talent sourcing Europe


Has your organisation completed any of the following talent related activities? Or do you plan

to do so in the next three months?

24%

6%

4%

5%

3%

4%

29%

43%

33%

18%

5%

2%

5%

13%

16%

15%

28%

16%

4%

34%

35%

49%

65%

64%

78%

90%

0% 20% 40% 60% 80% 100%


TALENT

Assessing the type and number of staff

needed in the UK

Reviewing talent resourcing and pipeline

in the UK

Reviewing talent resourcing and pipeline

in other EU member states

Reviewing locations of operations in the

UK and across the EU

Moving one or more roles from the UK to

another EU member state

Moving one or more roles from the UK to

outside the EU

Implementing hiring freeze in the UK

In progress or planned in

next 3 monthsConsidering Not planning

nor considering

Completed

13%

The survey (and our experience) tell us that most companies for whom

Talent is a concern are at Step 2 in assessing talent exposure


1. Talent questions

and data2. Analytics 4. Monitor impact

3. Decisions and

Action

Critical roles

Hard to recruit roles

Mobile roles

Decisions

nsights

Hiring i Manager insights

Actions

TACTICAL Talent Analytics Process

TALENT

What questions do we need

answering

What are the analyses telling

usHow well have we managed

the issue

What are we going to do

when

Those considering operating locations and moving roles are at an earlier

stage in the process


TALENT

STRATEGIC Talent Planning Process

Over one third companies released communication on Brexit


UK companies are more active in Brexit communications


COMMUNICATION

UNITED KINGDOM EUROPE (excl. UK)

32%

13%

55%

9%

26%

65%

45% 35%

Yes – a specific communication on Brexit

Yes – included as part of wider communication

Has your organisation released any communication to employees on Brexit in the last 3

months?

Yes – a specific communication on Brexit

Yes – included as part of wider communication

For those not communicating on Brexit … the issue is not top of

mind


We have too

much else going

on right now

46% 28% 22% 14% 5%


Brexit is not a big

enough business

issue

It is too far off to

be worth

communicating

We are unsure

what to

communicate

We are leaving

managers to

deal with

issues

COMMUNICATION

Reasons why your organisation has not issued a communication on Brexit?Percentage “to a great extent”

16

Other responses: Reward


Less concern and more tactical response on reward issues


Packages for Expats and Pensions more important issue

Have the following reward issues become more or less of a priority for your organisation in

response to Brexit and the resulting market uncertainty? Percentage more or much more

REWARD

Total

Rewards


£ UK rewards

packages less

attractive for non-

UK nationals

23% 22% 21%

20% 15%

Pension costsExpatriate

arrangements

Base pay

increases

Incentive

arrangements

Employers are keeping a watching brief on rewards strategy


Has your organisation completed any of the following reward related activities? Or do you plan

to do so in the next three months?

9%

4%

6%

13%

6%

6%

4%

16%

15%

16%

15%

10%

9%

5%

19%

68%

71%

73%

78%

84%

86%

91%

78%

0% 20% 40% 60% 80% 100%


REWARD

Making cost-of-living adjustments for Expats

Taking steps to reduce pension risks

Making adjustments to 2017 target setting

Making ad-hoc reward decisions to

attract/retain non-UK nationals

Reduced base pay increases

Freezing base pay

Making adjustments to 2016 incentive

payouts

Providing additional protection for Expat staff

moving to the UK

Main focus is on expat and non-national staff

In progress or planned in

next 3 monthsConsidering Not planning

nor considering

Completed

3%4%

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Any Questions?

Richard Veal

Phone: +44 17 3727 4634

[email protected]

Martin Emmerich

Phone: +49 89 51657 4830

[email protected]

Tamsin Sridhara

Phone: +44 20 7170 2914

[email protected]




Read more

Insights on Brexit

Statement from Willis Towers Watson's Head of

Great Britain

Statement from Willis Towers Watson's Head of

Western Europe


https://twitter.com/WTWhr

http://www.linkedin.com/company/willis-towers-watson

https://www.willistowerswatson.com/en-gb/insights/2016/06/the-eu-referendum

https://www.willistowerswatson.com/en-GB/insights/2016/06/the-eu-referendum-commentary-from-nicolas-aubert-head-of-great-britain

https://www.willistowerswatson.com/en-GB/insights/2016/06/the-eu-referendum-commentary-from-paul-morris-head-of-western-europe

https://twitter.com/WTWhr

http://www.linkedin.com/company/willis-towers-watson

Brexit talent and rewards survey results

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Transcript of Brexit talent and rewards survey results