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Strategy for Attracting and

Retaining Talent in a Low

Unemployment Rate: Compensation Design that

Balances Company Goals &

Industry Shifts

Guest Presenter: Mary MosquedaLockton Companies

TalentTakeawayswebinar & podcast series

AGENDAThe Series

TalentTakeawayswebinar & podcast series

Talent Takeaways Series

AGENDAAGENDA

Resource Library

Product Information

Product Tour & Demo

The Sponsor


Compensation Management Made for Managers

AGENDAWebinar Info


We are informal (and fun)

Ask Questions!

Q&A Session at end

HRCI & SHRM Credits

Slides will be available after

AGENDAAbout the Presenter


Mary Mosqueda is the Practice Leader for Lockton

Companies Compensation Global Consulting Practice and

is an in-demand national speaker on total rewards and

compensation. With over two decades of experience in

compensation, human resources, and work/life programs,

she has been a key contributor in the strategic

development of public and private sector executive

compensation and total rewards programs that attract

and retain top talent. She assists clients with strategy,

design, funding, administration, and communication of

total rewards programs and incentive compensation

plans—including annual and sales programs, executive

and board compensation negotiation, total remuneration

for international and expatriate compensation, pay-for-

performance systems, and work/life programs.

Lockton Companies |

Competitive Total Rewards

Pay: special attention to range penetration

Benefits: choice and flexibility

Retirement: student loan repayment

PTO: paid volunteer hours, parental leave

Other Perks

Employee Survey: Conjoint Analysis

Career Development

Culture/Brand/Employee Experience

Agenda

6

Total Rewards:

Competitiveness in the Market?

Lockton Companies |

Process for Creating a Total Rewards Strategy

Employee

survey/Pulse on

employee

engagement

•Conjoint analysis

Total Rewards

market analysis

(published

survey data)

•Compensation, benefits, retirement, PTO

• (Other non cash benefits)

What is “Desired”

position in the

market

•At or near the 50th percentile

•Above the 50th percentile for certain

elements

•Key stakeholder meetings

Inventory rewards

not offered •Determine cost impact

Develop Total

Rewards strategy

and communicate

8

Lockton Companies |

Sample Current Total Rewards Program

Compensation

Benefits

Medical

Vision

Dental

HSA, FSA

Basic Life

Supplemental Life

Spousal/Domestic

Partnership

Dependent Child(ren) Life

Personal Accident

STD, LTD (Low and High

Option)

Voluntary Benefits

Tuition Reimbursement

401(k)

Student Loan Assistance

Workplace Experience

Growth and development

Communication

Recognition

Referral awards

Member discount programs

Flexible schedules/

telecommuting

Base salary

Variable pay

Annual

incentives

Pay for

performance

Sales

compensation

SERP (executive

only)

9

Lockton Companies |

Market Study

Business Needs

Sample Current Total Rewards Program

TOTAL

REWARDS

PROGRAM

Fixed payPerformance

management

Health and

welfare

Savings/

retirement

Time offLearning and

developmentWorklife

Variable

pay

Employee

needs

Business

needs

Employee

Needs

Total Rewards

Programs

10

Lockton Companies |

When was the last time you did a compensation study?

Is your pay competitive?

Where do you anchor pay when you think of the entire employee value proposition?

Does your salary structure accommodate hiring ranges and movement through the range?

Are you bringing in new talent and paying them for what they are worth?

1st quartile to midpoint?

Are you moving current talent through the range appropriately and paying them for their performance and proficiency

Range analysis

How are you using incentive compensation?

How far down does it go?

Eligibility and participation?

Are goals and metrics set appropriately?

Pay

11

Lockton Companies |

Are they competitive in the market and do they match the employee life cycle?

HSA with high deductible vs. PPO low deductible

Does wellness play a role in the benefit package?

On site clinic vs. programs

Point system to lower deductible

Does the system in place promote healthy behavior or are people just trying to get the points to lower the deductible?

Is wellness a part of the culture?

Does financial wellness mean something to your organization?

Offering choice and flexibility

Have you considered “personalizing” benefit options?

Would your organization sustain “choice and flexibility” in plan design?

Student loan repayment vs. 529 plan (in lieu of certain percentage of the match)

Paid time off plans: would you exchange 1% match for more time off?

Benefits/Retirement

12

Lockton Companies |

Is your paid time off competitive in the market?

PTO bucket vs. vacation, sick, personal days

Should you have a purchase or buy back program

Parental leave/sabbaticals/paid volunteer hours

Maternity vs. paternity

Paid vs. unpaid sabbaticals (does that fit for the culture and our industry?)

Millennial generation wants to do more for the community (paid volunteer

hours)

½ day Fridays (summer hours/all year?)

Paid Time Off

13

Lockton Companies |

Pet insurance

Additional $60–100 any perk/

wellness

Genetic testing

Culture/family friendly work

environment

Onsite childcare

Bring your pet to work

Unlimited paid time off

Extended parental leave (full-time

and part-time)

Gender reassignment surgery

Adoption/surrogacy/egg

freezing/fertility

Employee relief fund for national

disaster

Education benefits (Starbucks pays

for employees to go to AZ State FT

up through BA)

Loan reimbursements/loan debt

Sabbaticals

Employee discount programs

PTO benefits for part-time employees

Gym membership (Free up to $50 per

month)

Extended bereavement leave

Top Perks in Best Places to Work

14

Poll Question

Do you believe you offer appropriate benefits and perks that create

the proper choice and flexibility for your multigenerational work

force?

Employee Survey:

Conjoint Analysis

Lockton Companies |

Employee Total Rewards Survey Process

Determine type

of employee

survey

(conjoint or

traditional)

Finalize

questions and

develop online

tool

Download and

analyze data

Develop final report

with recommendation

17

Lockton Companies |

Assesses the importance employees assign to different features of a

total rewards package.

Employees are asked to compare two benefits packages and choose the

benefits package they most prefer.

Conjoint Survey—Overview

Total Rewards Package #1 Total Rewards Package #2

Compensation No base pay increase 2% base pay increase

Medical 10% increase in health care premiums 20% increase in health care premiums

Retirement 6% matching contribution 3% matching contribution

Paid Time Off Vacation buying program Unlimited PTO

Work Life Catered lunch 1x per week Paid gym membership

18

Lockton Companies |

Understand and cultivate a value proposition that speaks to the unique

preferences and needs of an organization workforce

Identify the benefits employees value the most and understand the

trade-offs they would make

Conjoint Survey—Outcome

21%

14%

12%

9% 9%

7%

0%

5%

10%

15%

20%

25%

Base Pay Increase 401(k) Match at

3%

Regular Healthcare

Premiums

Paid Time Off Bonus Gym Wellness

Reimbursement

+7%The largest delta between two features is from the

most important to second-most important.

19

Lockton Companies |

Conjoint analysis: Feature importance sample

21%

14%12%

9% 9%7% 6%

5% 5% 5% 4% 3%

0%

5%

10%

15%

20%

25%

+7%The biggest delta between two features is from most

important to second-most important

Base pay increase is 50% more important than the next

more important features

20

Lockton Companies |

Scores for each level can be used in an Excel-based simulation to model

expected satisfaction of potential total rewards packages

Conjoint Survey—Outcome

21

Career Development

Lockton Companies |

Do you have clear career paths for development and progression

Does your organization have a reimbursement program?

Does it pay for all or some?

Does it have to be related to your current or future job with the

organization?

Will you pay for certifications or management programs?

Does the organization have a “university” to help continued growth and

development of all employees at all levels of the organization?

In manufacturing: pay for progression?

Career Development

Lockton Companies |

Job Family/Career Level Example

Level Entry Level Mid Level Senior Level

Education and

Experience

• 0-2 years of related experience in an office

setting.

• Bachelor’s degree in business administration or

related field required.

• 3-4 years of experience in general or tax

accounting.



• Certified Public Accountant (CPA) desirable

• 5+ years of accounting general or tax accounting

experience.



• Certified Public Accountant (CPA) desirable.

Knowledge, Skills,

Abilities

• Proficient knowledge and understanding of

financial statements, banking activity and

financial reporting.

• Basic understanding of statistics and related

financial concepts.

• Comprehensive knowledge and

understanding of financial statements, banking

activity and financial reporting.

• Intermediate understanding of statistics and

related financial concepts.

• Advanced of financial statements, banking

activity and financial reporting.

• Advanced understanding of statistics and

related financial concepts.

• Intermediate computer skills within Outlook,

Word, Power Point, Excel, and Access Database.

• Intermediate problem solving and analytical

skills. Strong attention to detail.

• Ability to manage multiple priorities and

deadlines.

• Comprehensive knowledge and

understanding computer skills within Outlook,

Word, Power Point, Excel, and Access Database.

• Advanced problem solving and analytical skills.

Strong attention to detail.

• Advanced ability managing competing

priorities and deadlines. Leads moderately

complex resolutions.

• Advanced knowledge and understanding

computer skills within Outlook, Word, Power

Point, Excel, and Access Database.

• Expert problem solving and analytical skills.

Extreme attention to detail.

• Expert ability managing competing projects and

deadline. Leads complex resolutions.

• Intermediate quantitative modeling abilities. • Advanced quantitative modeling abilities. • Expert quantitative modeling abilities.

Client Interaction • Occasional interaction with external clients.

Typically in supporting role.

• Moderate interaction with external clients.

Serves in supporting role or lead role for less

complex assignments.

• Regular interaction with external clients. Serves

in lead role for complex assignments.

Scope of

Responsibility

• Performs routine daily tasks and standard

project work. May conducts analyses, create

presentations, research discrepancies and/or

writes copy for marketing materials.

• Performs both routine daily tasks and full

project work assignments. Conducts analyses,

create presentations, research discrepancies

and/or writes copy for marketing materials.

• Performs complex project work assignments and

some fulltime work. Conducts analyses, create

presentations, research discrepancies and/or

writes copy for marketing materials.

Lockton Companies |

Job Family/Career Level Example

Level Entry Level Mid Level Senior Level

Problem Solving/

Troubleshooting• Basic problem solving using standard practices

and procedures. Problems are solved with the next

highest level or guidance from a more experienced

associate.

• Problem solving becomes more advanced and

requires independence. Expected to resolve

most regular issues and develop standardized

solutions; new policy implementation requires

approval from supervisor or manager.

• Problem solving is complex and will likely

involve problems that are unique or highly

complex. Ability to use senior level expertise to

resolve complex issues. Will collaborate with other

internal and external resources to develop solution

and implement results.

Judgment/

Managerial Skills

• Prioritizes and executes tasks as assigned

accurately and efficiently.

• Prioritizes and executes multiple tasks and

assists in special projects.

• Leads priorities for the team and manages

workloads in lieu of the Supervisor.

• Prioritizes and executes multiple tasks and multiple

special projects.

Decision Making • Decision making is based on internal and

standardized policies, guidelines and procedures.

• Decision making setting priorities and collaborating

with internal and external resources when

necessary. Identifies critical issues and escalates

to higher levels, as appropriate.

• Independent judgment is exercised to identify

and apply appropriate procedures and/or approach

solutions in addition to using internal policies,

guidelines, and procedures as necessary.

Decision Making

Authority

• Independent decisions are made based on

standard policies and practices. Must obtain

approval from immediate supervisor for non-

routine decisions.

• Independent decisions are made based on

standard policies and practices. May develop own

solutions for non-routine issues, but must obtain

approval from immediate supervisor prior to

implementation.

• Exercises independence and latitude in

making decisions using standard policies, practices

and personal experience. Collaborates with

management on complex or non-routine decisions.

Decision Making

Examples

• Examples of Decisions Include:

Example 1

Example 2

Example 3

• Examples of Decisions Include:

Example 1

Example 2

Example 3

• Examples of Decisions include:

Example 1

Example 2

Example 3

Supervision • Work is directly supervised – receives

instruction, guidance, and direction from others

• Work is moderately supervised and directed –

work is reviewed at critical points for soundness,

judgment and overall accuracy.

• Little to no supervision – works independently,

using solid independent judgment, and receives

minimal guidance.

Poll Question

Do you have defined career paths in your organization by job family?

Creating a Culture and Brand

Lockton Companies |

How would you describe your culture?

Paternalistic

Inclusive

Collaborative

Reinforces the values of the organization

What the company “stands for” is very important to millennials

Where is the organization in their life cycle?

Transformative

Stagnate

High growth

How does your culture come across to the organization?

Positive

Negative

Needs changing/updating/enhancing

Merge/acquisition (unsteady)

Culture

Lockton Companies |

Do you have a brand that people want to work for?

How would you describe your brand?

Is the brand known? (if not is the culture known?)

How does Glassdoor describe your organization?

What does social media have to say about you?

What is the “image” you are trying to present?

How are you communicating your brand?

Social media

Word of mouth (referrals from employees?)

Are we cultivating the brand and communicating to employees?

Brand

Lockton Companies |

Employee Experience

Lockton Companies |

It’s all touchpoints of an employee’s time with the organization

Starts with exceptional onboarding and then extends throughout the

employee life cycle

Employee needs to “feel”:

Welcomed

Basic needs are met

Needed and appreciated

Physical workspace is efficient and “fun”

Technology that is superior

Corporate culture “fits” their personality

Employee Experience

AGENDAQ & A


Live Q&A

AGENDAAGENDAResources & Support


Resource Library

Product Information

Product Tour & Demo

HRsoft.com

RISK MANAGEMENT • EMPLOYEE BENEFITS • RETIREMENT SERVICES

Our Mission | To be the worldwide value and service leader in insurance brokerage,

risk management, employee benefits and retirement services

Our Goal | To be the best place to do business and to work

© 2018 Lockton, Inc. All rights reserved.

LOCKTON.COM

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