What to do if you’re managing reward in Excel

NOVEMBER 2016

What to do if you are managing reward in Excel

© 2016 Willis Towers Watson. All rights reserved.

David Hargrave and Tom Hellier

Typical Pay Review Cycle

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1 2

3

4

5

2

2. Gather Performance Ratings

Performance reviews take place.

3. Model potential costs models

Understand how the budget will be distributed

Detailed market benchmarking for roles

Union negotiation

4. Finalise distribution

Gain line management recommendations for discretionary spending / other recommendations

Finalise costs based on performance ratings and union negotiations

5. Finalise and communicate to employees

Final governance process for approval

Finally pay and communicate to employees

1. Budgeting

Affordability

Market conditions

Organisation position

Economic Inflation

Global

50 Countries

6 BU’s3300

Domestic

1 Country

1 BU

The risks are high…

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International

10 Countries

3 BU’s

11

330

• Just about manageable…

• Key person risk

• Medium complexity

• Risk of error

• Very difficult to manage centrally…

• Key people risk

• Pressure on governance and control

• Inefficient and inconsistent

• Inherent risk of error and inconsistency

• Key team risk

• Requires significant resource

• Highly inefficient

What’s your experience?


Is your experience similar?

What issues does your current

process create?

How do you control the process?

How many people in your global

compensation team?

<5 <20 20+

Budgeting

Manager Recommendations

Salary Ranges

A picture of the future…from this


Market Data

Market Data

Market Data

Market Data

Finance

Finance

Budgeting

Survey Submissions

Survey Submissions

Survey Submissions

Survey Submissions



Analytics & Insight

Analytics & Insight

Analytics & Insights

Analytics & InsightFinance

Finance

Budgeting

Salary Ranges

Approvals

Reward Statements

Employee Data

Reward Statements

Benchmarking

Benchmarking

Benchmarking

Salary Ranges

Reward Communication

Approvals

Payroll Systems

Pro-RationCost Control Cost Control

Cost Control

Payroll SystemsPayroll Systems

Pro-Ration

Pro-Ration

Approvals

Approvals

…to this


A single source of all compensation data linked to internal and external data sources

Internal Data Compensation Software External Data

Benchmarking

Budgeting


Salary Ranges

Market Data

Survey Submissions

Analytics & Insight

FinanceApprovals

Reward Statements

Employee Data

Cost Control

Payroll Systems

Simplification

…enabling this


Consistent and efficient control of

compensation processes across

the globe

Reward skill-sets focused on

strategic insight rather than

data management

Global

Region 1

Country A

Country B

Country C

Region 2

Country D

Country E

Country F

Region 3

Country G

Country H

Country I

Case study 1: Siemens


Understanding the competitive landscape for talent

The company:

• Siemens is a German Engineering company with 350,000 employees around the world.

It is highly diversified across many sectors and has a significant operations in all

corners of the globe

The issue:

• On a journey to transforming their HR function – Developing a Reward Centre of Expertise

• Moving from managing reward processes locally to greater centralisation

• Little consistency in job definition and market benchmarking around the world

• Salary surveys from multiple vendors purchased locally with significant duplication

• Little management information on how compensation compared to the market

The solution:

• Licenced Willis Towers Watson Compensation Software

• A single, global library of all vendor salary surveys in 100+ countries

• Advice and guidance on bringing global consistency to definitions of pay across Base, total cash and

total direct compensation and links to market data

• Strong view on how they compare to the market

• Corrective action to ensure employees with critical skills for future growth are paid competitively

Case Study 2: A Utility Company


Bringing efficiency to a small reward team

The company:

• An Irish semi-state utility organisation

• 1,300 employees

• Heavily unionised

The issue:

• Pressure from government and shareholders to bring efficiencies and cost control in all areas

• On a modernisation agenda - very manual HR and compensation processes

• Small C&B team

• Began to build new HR infrastructure by grading organisation using WTW Global Grading System

• Needed to align to the market and manage compensation processes more efficiently

• Be responsive to management demands for data and analytics during union negotiations

The solution:

• Licenced Willis Towers Watson Compensation Software

• Loaded all job and employee data via feed from HR Information System

• Benchmarking and design/ impact of market-based salary ranges

• Modelled merit matrices and cost/model budgets for union negotiations

• Use the software as a one-stop shop for all compensation related analytics – focus their efforts on

the change and communication of reward programmes

Questions to the audience…

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1. Who is using some form of dedicated compensation

software?

For which elements of the process??

2. Who is still using Excel? And why??

3 practical actions to streamline compensation management

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Audit your annual Understand how

process to find inconsistencies

and key person risk;

understand where dedicated

technology could be integrated

functionality can help you

achieve a more efficient

process How will it link to your existing

data sources?

How scalable is it?

How will you tackle data

privacy?

What is the user experience

like?

case looking at return on

investment in key areas of the

process: Risks associated with status

quo

Governance, cost,

compliance, people

Market data management

Staffing the compensation

process

Salary drift control

Build a business

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Speaker details

David HargraveDirector, Talent and Rewards

Phone: +44 (0) 20 7170 2926

[email protected]

Tom HellierGB Practice Leader, Rewards

Phone: +44 (0) 20 7170 2009

[email protected]

What to do if you’re managing reward in Excel

Business

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