Transforming the Total Rewards Function · compensation or improve pay benchmarking Top “AI in...

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The opinions expressed in this presentation are those of the speaker. The International Society and International Foundation disclaim responsibility for views expressed and statements made by the program speakers. Transforming the Total Rewards Function Andre Rooks Principal, Senior Consultant, Rewards Mercer Chicago, Illinois Brian Buck Principal, Senior Consultant, HR Transformation Mercer Chicago, Illinois 16C-1

Transcript of Transforming the Total Rewards Function · compensation or improve pay benchmarking Top “AI in...

Page 1: Transforming the Total Rewards Function · compensation or improve pay benchmarking Top “AI in HR” investments for 2019 Executives’ number one workf orce concern this year is

The opinions expressed in this presentation are those of the speaker. The International Society and International Foundation disclaim responsibility for views expressed and statements made by the program speakers.

Transforming the Total Rewards FunctionAndre RooksPrincipal, Senior Consultant, RewardsMercerChicago, Illinois

Brian BuckPrincipal, Senior Consultant, HR TransformationMercerChicago, Illinois

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A C H A N G I N G B U S I N E S S W O R L D

H U M A N - L E DT E C H N O L O G Y- E N A B L E D

FUTURE OF WORK

EMPLOYEEEXPERIENCE

DIGITALTRANSFORMATION

H E A L T H W E A L T H C A R E E R

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M E R C E R I S A G L O B A L F O R C E O F O V E R 2 3 , 0 0 0 U N I Q U E I N D I V I D U A L S W I T H A P A S S I O N F O R E N H A N C I N G T H E H E A L T H , W E A L T H , A N D C A R E E R S O F 1 1 5 M I L L I O N P E O P L E W O R L D W I D E .

W E ’ R E U N I T E D B Y A S I N G L E I D E A – T O M A K E L I V E S B E T T E R T O M O R R O W T H R O U G H T H E A C T I O N S W E T A K E T O D A Y

H U M A N A G E

FUTURE OF WORK

EMPLOYEEEXPERIENCE

DIGITALTRANSFORMATION

H E A L T H W E A L T H C A R E E R

A C H A N G I N G B U S I N E S S W O R L D

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M E R C E R I S A G L O B A L F O R C E O F O V E R 2 3 , 0 0 0 U N I Q U E I N D I V I D U A L S W I T H A P A S S I O N F O R E N H A N C I N G T H E H E A L T H , W E A L T H , A N D C A R E E R S O F 1 1 5 M I L L I O N P E O P L E W O R L D W I D E .

W E ’ R E U N I T E D B Y A S I N G L E I D E A – T O M A K E L I V E S B E T T E R T O M O R R O W T H R O U G H T H E A C T I O N S W E T A K E T O D A Y

But are they focusing on the right things to prepare their workforce for the future – in terms of size, shape and skillset?

How should organizations develop personalized reward programs and craft the types of work experiences that people crave?

How should business, technology and HR leaders collaborate to meet employees’ expectations for a consumer-grade digital workplace?

73% of business executives expect significant disruption in the next

three years

99% of HR leaders are already taking action to prepare for the

future of work

Only 13% of organizations offer a fully digital experience for

employees

and 1 in 3 employees say their company does not provide them

with the tools they need to do their job efficiently

Thriving employees are 4x more likely to work for a company that

has a strong sense of purpose,

offers them opportunities to develop their skills

ensures equity in pay and promotion decisions

H U M A N A G E

FUTURE OF WORK

EMPLOYEEEXPERIENCE

DIGITALTRANSFORMATION

H E A L T H W E A L T H C A R E E R

A C H A N G I N G B U S I N E S S W O R L D

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H E A L T H W E A L T H C A R E E R

F U T U R E O F W O R K

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D O Y O U R E M E M B E R Y O U R F I R S T T I M E ?

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W H AT D O E S I T M E A N F O R U S

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I T S M E A N S W E N E E D T O P R O V I D E A F I R S T C L A S S E X P E R I E N C E

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W H A T M A K E S A D I F F E R E N C E ?

Thriving employees work in an inclusive, flexible environment that offers a strong sense of purpose and valuable learning opportunities

Has a strong sense of purpose that resonates with their personal valuesx 3.6 Makes a positive societal impactx 2.4

x 3.5 Offers them opportunities to develop their skills x 2.7 Focuses on their health &

well-being

Makes efforts to be intentionally diversex 2.2 Offers flexible work optionsx 2.1

Helps them achieve their financial goalsx 4.9 Ensures equity in pay

and promotion decisionsx 4.3

AFFINITYPRIDE

PURPOSE

CAREER & WELL-BEING

COMPENSATION & BENEFITS

WORKPLACE / LIFESTYLE

They work for a company that . . .

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Top 6 reasons for joining

Employee view

11%

10%

10%

7%

7%

6%

Job security

Careeropportunities

Competitive pay

Developmentopportunities

Meaningful work

More interestingwork

Top 6 reasons for staying

Employee view

26%

20%

20%

20%

19%

18%

Job security

Medical benefits

Developmentopportunities

Flexibility inhours

Competitive pay

Careeropportunities

Top 6 reasons for leaving

Employee view

11%

9%

7%

7%

7%

6%

Competitive pay

My manager

Job security

More interestingwork

Careeropportunities

Developmentopportunities

H O W S H O U L D W E C O N T I N U A L L Y A T T R A C T T A L E N T

#2

#1

#5

#1

#4

#10

#2

#6

#10

HR view HR view HR view

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H O W C A N W E E M B R A C E D I G I T A L H R A N D U S E A N A L Y T I C S T O V A L I D A T E E M P L O Y E E R E S O N A N C E

Areas of concern:

18% What is the impact of different pay strategies on performance and retention?

Which populations are failing to progress within the organization?29%

In 2019, we saw significant increase in the use of analytics to determine: How total rewards programs are being utilized

Why people are choosing to join the company

9% 23%

15% 25%

2018 2019

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T H E PAT H F O R W A R D

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H O W S H O U L D W E C O N T I N U A L L Y A T T R A C T T A L E N T ?L E A D I N G T R E N D S

P E R S O N A L I Z E D , A G I L E , A N D

H O L I S T I C

A leading organization must understand the need to create personalized, agile, and holistic rewards systems. This is essential to attracting, motivating, and developing talent.

The days of designing rewards programs as a straightforward mix of compensation and traditional benefits are over.

O N E - S I Z E D O E S N O T F I T A L L

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An employer’s value proposition should be multi-faceted – just like the talent that contributes to an organization’s success.

In a transparent world, the consumer brand and employee brand are one and the same –authenticity is critical.

Attractiveness is a two-way street. A deal’s appeal can be diminished by negative perceptions of the brand or an inability to uphold brand values.

H O W S H O U L D W E C O N T I N U A L L Y A T T R A C T T A L E N T ?B R A N D R E S O N A N C E

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H O W S H O U L D W E C O N T I N U A L L Y A T T R A C T T A L E N T ?C U R A T E T H E H R E X P E R I E N C E : P E R S O N A L I Z E T H E E X P E R I E N C E

O n b o a r d i n g

D e v e l o p m en t

T r a n s i t i o nC r i t i c a l

E x p e r i en c e s

N e w M a n a g e rE x i t

P e r f o r m a n c e

P r o m o t i o n

R e c r u i t i n g

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Chatbots for employee

self-service

AI to identify employees at risk of leaving

AI to recommend job openings and/ or career paths to

employees

AI as part of the performance

management process

AI to customize compensation or improve pay benchmarking

Top “AI in HR” investments for 2019

Executives’ number one workforce concern this year is meeting employees’ expectations for a consumer-grade digital experience

H O W C A N W E U S E E M B R A C E D I G I T A L H R A N D U S E A N A L Y T I C S ?R E T H I N K T H E H R L I F E C Y C L E T O M E E T E M P L O Y E E E X P E C T A T I O N S

41% 40% 39% 38% 38%

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H O W C A N W E U S E E M B R A C E D I G I T A L H R A N D U S E A N A L Y T I C S ?T R A N S F O R M T H E H R F U N C T I O N

Digitization

HR in digital organizations are 6X

more likely to be seen as a significant

contributor

HR Core2019 process redesign efforts focused ontalent acquisition & career management

HR Admin48% of companies plan to increase the

number of functional staff per head as they grow the business

Simplify

the work experience is exec’s 2nd people priority

Automate

60% of companies plan to increase automation

HR Strategy

31% of HR leaders very confident strategywill deliver future needs

Process Orientation

1 in 3 employees say it takes 1+ hour to do

straightforward HR tasks (e.g., time off)

LeanExecutives say

improving HR efficiency is the #1 area for business technology investments

Agile30% of executives describe

their organization aschange agile

Focused45% of executives strongly agree that HR is effective in aligning people strategy with strategic business priorities

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H O W S H O U L D W E C O N T I N U A L L Y A T T R A C T T A L E N T ?C U R A T E T H E H R E X P E R I E N C E : U S E A N A L Y T I C S

I D E N T I F Y I N G P E R S O N A S

Team Leader – OfficeManages team of direct

reports

New HireRecent college hire,

reports to Team Leader

PRIMARY CHALLENGE: Having the right resources to support employees as they onboard and grow their careers within the organization

PRIMARY CHALLENGE: The unknown of what lies ahead –how to begin my new work life, who to talk to, how to navigate the organization and meet expectations

D E T E R M I N I N G P R I M A R Y P E R S O N A S

Mapping the future state experience for how employees and managers will leverage technologies and third‐party services to streamline their HR workflows.

Identifying the impact of change relative to a set of primary personas who will engage with core HR journeys.

Identifying all potential personas involved in the HR journeys, determining and developing the primary personas for each journey.Team Leader Personas

Team Leader – OfficeTeam Leader – FieldDirectorExec/ Sr. Leader (VP+)

Employee PersonasEmployee – OfficeEmployee – FieldNew Hire – OfficeNew Hire – FieldNew Hire – Executive

Candidate PersonasExternal CandidateExternal – College GradExternal – ExecutiveInternal Candidate

HR PersonasHRBP – OfficeHRBP – FieldCOEShared ServicesHR Generalist / Analyst

Library of all potential personas involved in HR journeys…

“I want to feel welcome, understand exactly what’s expected of me and have a single place to go for all of my onboarding activities and needs.”

Mobile enabled Onboarding Platform integrated with HCM technology

Virtual orientation and suggested learnings available to me

Peer Resource identified, welcome pack sent prior to start

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B R I N G I T A L L T O G E T H E R

Crafting the employee experience through standardization, simplification, and automation of HR processes.

Identify key personas with distinct characteristics and design the user 

experience for each journey, eliminating pain points depicted in the Emotional 

Curve for each persona  

Guided by design thinking, transform HR processes to eliminate 

unnecessary complexity, improve adoption and re‐align roles/responsibilities 

Identify opportunities for automation, either within the Workday environment or suggest additional tools/platforms such as AI, Bots or RPA to support the persona 

experience through each journey 

Identify impact on data governance and HR policies which support redesigned processes to ensure 

sustained effectiveness 

Conduct Interviews

Develop Personas

Simplify & Automate

Map the Backstage

Document & Refine

Identify Impact

Define Touch‐points

Design UX Journeys

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Questions?

Thank You

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