THE FUTURE OF REWARDPETER NEWHOUSEGLOBAL HEAD OF REWARDUNILEVER

NEW ERA OF HR

OUTLINE OF THE SESSION

TheVision Three Big

Drivers for Change

How Reward is Evolving

Foundations

for a newReward

Proposition

How RewardWorks

New Directions

1 23 4 5

6

How technology and the new generation are shaping THE FUTURE OF REWARD

Pay custom tailored to fit Lots of flexibility Easy to deliver Easy to change

THE VISION

3 BIG DRIVERS FOR CHANGE

CHANGE

PEOPLE DRIVERS

HOW WE WANT THINGS TO BE

Closed Open Inequitable Fair Erratic Consistent

Incoherent Explainable Rigid Flexible Hierarchical Flat

Zeitgeist

ORGANISATIONAL DRIVERS

Focus Standardisation Simplification Fewer resources

3 BIG DRIVERS FOR UNILEVER

1. Purpose driven business model

2. The Extended Organisation

3. Employee Centred

8

HOW REWARD IS EVOLVING

Centralised

Independent

De-centralised

Interdependent

Hopelessly Local

Mindlessly Global Multi-Local

Ad-Hoc andInconsistent

One SizeFits All Segmented

TECHNOLOGY

ENABLER ENABLERCONSTRAINT

Consistency Data Automation

Segmentation Personalisation

THE OPPORTUNITY

Technology with Humanity aligned to Purpose

LAYING THE FOUNDATIONS

New Principles New Data & New Technology New ways to look at Reward

OLD PRINCIPLES

Attract Retain Motivate

Pay More! Pay More!! Pay

More!!!

With only Pay - how do you ….?

ToughPlace to

WorkATTRACT

GoodPlace to

Work

Lonely Place to

Work

RETAIN

MOTIVATE

THE REWARD PROPOSITIONFI

XED

PAY

VARIABLE PAY

InterestingPlace to

Work?VocationalPURPOSE

The wayyou pay

will AttractRetain &Motivatedifferentkinds ofpeople

14

Systems &ProcessesReward

BehaviourValues

Culture

HOW REWARD WORKS

Individual

Collective

Insi

de

Outside

NEW DATA & NEW TECHNOLOGY

1. Reward Profile – analytics

2. ‘Rate-my-Reward’ – feedback

3. Market Data – positioning

4. Pay Philosophy – authenticity

5. Employee Engagement

6. Business Results

NEW WAYS TO LOOK AT PAY

NOW SOON LATER AFTER

SALARY

BENEFITS

BONUS

SHARES

PENSION

17

NEW STRUCTURES

Time

Leve

l

Cumulative ValueOver time

Trajectory – pay the person not the role

Reward Structure

NEW DIRECTIONS FOR REWARD

More benefits, less variable pay Reward as long term cash flows Lifestyle alignment “Advances” Giving people what they value

Pay custom tailored to fit Lots of flexibility Easy to deliver Easy to change

THE FUTURE OF REWARD

THE VISION OF WHERE WE WANT TO BE

DISCUSSION

THE FUTUREOF REWARD