european reward conference 2017- "technology and talent: how improving the employee experience...

9 February 2017

Technology and talent: how improving the employee

experience leads to greater productivity

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

David Hargrave and Tom Hellier

Total Reward is no longer the driver of a differentiated employee value proposition (EVP)…

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In fact you could argue:

…Reward is a hygiene factor

• get it right and no-one notices, get it wrong and everyone knows

…most companies are doing similar things

• Benchmarking to similar peer groups…

• Targeting the median of the market…

• Not engaging employees sufficiently in their Rewards


In this session we’ll look at how you can leverage technology to:

1. Differentiate your EVP by creating exceptional employee experiences

2. Bringing efficiency to the Reward function to enable you to focus on value added activities

Total rewards is important for attraction and retention but less so for sustainable

engagement

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

Rank Drivers of Attraction Drivers of Retention Drivers of Sustainable engagement

1 Base pay/salary Base pay/salary Senior Leadership

2 Job security Career advancement opportunities Clear Goals & Objectives

3 Career advancement opportunities Physical work environment Supervision

4 Challenging work Job security Image & Integrity

5 Opportunities to learn new skills Ability to manage work-related stress Workload & Flexibility

What is Sustainable Engagement?

Engagement – Rational, emotional and behavioral attachment to the company

Enablement - A local work environment that supports productivity and performance

Energy - Individual physical, interpersonal and emotional well-being at work

Employee Drivers

Total Rewards is one part of a much bigger EVP picture

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Desired Culture

Human Capital

Strategy

EVPEmployee Value

Proposition

Business

Strategy

Human capital

dimensionsOutcomes

Customer Experience

Business Performance

Employee Performance

Employee Retention

Employee Engagement

Employee Attraction


An effective EVP lives in the employee lifecycle


RECRUITMENT

• Engages and filters the right

people

• Talk about more than rewards

• Clear expectations of partnershipON BOARDING

• Continues the recruitment

experience

• Sets out:

• what employees are

entitled to

• what’s expected of them

PERFORMANCE MANAGEMENT

• “Give” side of the EVP with clear

expectations of overall employee

performance and behaviours

EMPLOYEE DEVELOPMENT

• Triggers and guides people

development discussions

• People know how to

progress their careers

BEFORE JOINING

• The customer experience

reinforces your brand

• What people say about you on

social media

• What friends and family think

of you

LEAVING

• Contribution acknowledged

• Leaving experience positive –

door open for return

• Exit interview feels worthwhile

• Ambassador for the Company

EVPEmployee Value

Proposition

How can technology help reinforce the EVP across the employee lifecycle?

Employee Experience

Reward

Talent, Performance and Development

Social Collaboration

Workforce Analytics and Planning

Talent Acquisition and Onboarding

6© 2017 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only.

Online purchase

Internet search

FB post, tweet

Group Exercise: Use One Word to Describe Your Most Recent Experience With….

7© 2017 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only.

Group Exercise: Use One Word to Describe Your Most Recent Experience With….

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HR Intranet Site

Benefits Enrollment

Viewing your pay slip


What Is the Employee Experience as it relates to Rewards?

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Rewards delivering a

compelling employee

experience

PROGRAM DESIGN

Directly impacts culture and

perceptions of values

PROGRAM DELIVERY

Delivery via HR and

Managers

SYSTEMS USER INTERFACE

Tech & tools that provide ease

of use, access and interface

COMMUNICATION

Push and pull of information

and education


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How the business explained it How the project manager

understood it

How the team designed it How it got built How the consultant explained

it

How the project was

documented

How the regional teams

implemented it

How the budget was

managed

How the project was

supportedWhat the business really

needed

Expressing the EVP – Technology that micro-segments your populations

Part-time mum

High potential/Critical talent

New joiner

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Personalizing the Total

Rewards story to

maximize impact for

different employees.

High potential employee

gets told a story of

inspiration, including

career direction, training

support and global

mobility opportunities.

Expressing the EVP – Technology that delivers personalized messages

The importance of getting it right. Companies that deliver an effective EVP are:

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3 times as likely to report their employees are highly engaged

1.5 times as likely to report achieving financial performance significantly above their peers

* Willis Towers Watson Global Workforce Study



Is your experience similar?

How have you used technology to create

an engaging employee experience?

Typical Pay Review Cycle – How efficient is your process?

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

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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

Pay and communicate to Ees

1. Budgeting

Affordability

Market conditions

Organisation position

Economic Inflation

International

10 Countries

3 BU’s330

Domestic

1 Country

1 BU

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Global

50 Countries

6 BU’s3300

Typical reward processes are inefficient and have significant risk


• Just about manageable…

• Key person risk

• Medium complexity

• Risk of error – mostly manual

• 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


Is your experience similar?

How have you used technology to bring

efficiency to your Reward processes?

Case study: German Engineering Conglomerate


Globalising the compensation function

The company:• A German Engineering company with 250,000 employees around the world. It is highly diversified across many sectors and has a

significant operations in all corners of the globe

The issue:

• Moving from managing reward processes locally to greater centralisation,

• Little to no transparency on employee compensation and market pricing at a global level

• Salary surveys from multiple vendors purchased locally with significant duplication

• Business requirement for quick access to relevant market information

The Outcome:

• Licenced Willis Towers Watson Compensation Software

• Spend valuable C&B expert time on interpretation and consulting rather than handling data

• Instant ability to respond to global business requests (as compared to days/weeks of data collection and verification via excel

spreadsheets)

• Efficiencies in survey submission

• Increased understanding of pay philosophies, local practices in market pricing, creation of salary structures etc.

• Able to leverage best practices and/or raise efficiency in individual countries (e.g. salary structures vs. Individual benchmarking)

• Foundation for further centralisation raising efficiency and competence in the market intelligence functions (COE concept)

Where is the return on investment?


StaffingFocused on more value added activities – like the employee experience

Market Pricing50% reduction in time

Modelling and budgeting

50% reduction in time

Survey data submission

75% reduction in time

Pay bill optimisation Better control of salary costs

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In summary…Technology is evolving to enable you be more efficient and focus on the Employee

Experience


Employee

Experience

HR

Efficiency