HR Management Institute 2016

Considering Compensation and Benefit TrendsJOSEPH ZUNIGAHEAD OF TOTAL REWARDSPARKLAND HEALTH AND HOSPITAL SYSTEM

A little background about me Retail - 36,000 employees in 49 states

Banking – 55,000 employees in 13 states

Consumer Goods – 20,000 employees world wide

Social Services Non-profit – 8,000 employees in 50 states

Non-Profit Healthcare System – 30,000 employees in 5 states

Education – 5,000 employees

Non-Profit Healthcare System – 12,000 regional employees

What is Total Rewards

Total rewards can be defined as all of the employer’s available tools that may be used to attract, motivate, and retain employees.

There is no standard Total reward philosophy and is tailored to specific organizational needs.

Total Rewards Should Help Answer Questions Like:

why do employees choose to remain with a particular employer?, why do they leave?,

what factors motivate performance and commitment?.

The objective of a well-designed Total Rewards

program • DRIVE DESIRED BEHAVIORS IN THE WORKFORCE,

• REINFORCE OVERALL BUSINESS STRATEGY,

• ENSURE ORGANIZATIONAL SUCCESS.

Total Rewards includes: • BASE PAY• INCENTIVES• EQUITY• RECOGNITION• BENEFITS & WELLNESS• ALL TIED TO PERFORMANCE MANAGEMENT

Reasons why employees quit a job

BAMBOOHR RECENTLY CONDUCTED A SURVEY ASKING EMPLOYEES THE REASONS WHY THEY QUIT A JOB. THE SAMPLE INCLUDED MORE THAN 1,000 U.S. EMPLOYEES OVER THE AGE OF 24 YEARS OLD.

Reason # 1: They decided that work wasn’t something they wanted to do (28%).

Reason #2: They thought they were given different work than they expected from the hiring process (26%).

Reason #3: Their boss was a jerk (23%).

Reason #4: They didn’t receive enough training.

How can Total Rewards help in engagement?

What are the most pressing issues in the Total Rewards Space?

Salary, Health Benefits Top the Compensation List

Human Capital Media Advisory Group Survey

91 percent of the roughly 120 HR professionals included said salary and pay were employees’ most important compensation offering

68 percent said health care

33 percent of HR professionals cited Work Culture as employees’ most-cherished compensation offering

When it comes to measuring compensation offerings, HR professionals identified employee satisfaction and retention as the top two ways they measure the success of their program.

67% Employee Satisfaction

67% Retention

43% Employee engagement

33% each — Benchmarking or job offer

18% Directly measure return on investment

Most HR respondents plan to keep benefits offerings at current-year levels.

71 % planned to neither increase or decrease benefits offerings over the next year

5% planning to significantly increase benefits offerings

16% planned to slightly increase benefits offerings.

0% planned to significantly decrease benefits offerings

8% planned to slightly decrease benefits offerings over the next year.

On Compensation 44 of 120 respondents plan to slightly increase employee

compensation

42% likely keep it at current levels over the next year.

11% plan to significantly increase compensation

2% plan to slightly decrease compensation

Less than 1% plan to significantly decrease employee compensation over the course of the next year

How Total Rewards can assist in Engagement

1. Define Your Compensation Strategy

2. Identify Your Critical Healthcare Talent

3. Build a Pay for Performance Model

4. Pay Competitively. Pay Appropriately. Pay Accurately.

5. Create a Compensation Communication Plan

Benefits - Need to play not to Win

Any Consumer Driven initiative not already in place – start to bend the trend line in health costs; 20% of employees make up 80% of the medical costs

Care Management and Disease Management have far better ROI than Wellness

Measure your turnover – is it worth the investment? Not in retail Employee Information portals – need better decisions No cost items that bring value – Economies of Scale Voluntary

Benefits Increase the perceived value of benefit offerings, i.e. pension and

401(k)

Emerging issues in Compensation at Parkland

Career Path Progression Clinical Ladders Advanced Practice Providers

Total Rewards Initiatives – How to push through

C- Suite support, it’s critical to have HR at the C-Suite table or at least a strong voice

Align HR and TR Objectives with Organizational Align yourself with Finance Build strong relationships with your vendors Be astute in actuarial and underwriting methodologies Be ahead of the C-Suite in emerging trends

Align with Finance

HR and Finance….

you tell me which one is which?

What “gene” is needed in a leader?

“I have never seen a great leader that didn't have the generosity gene. Take care of your people, let them know where they stand, cheer them, never take credit for what they do, and they'll go to the moon for you.”

“I wish I'd identified the generosity gene as a clear requirement. I never would have made as many mistakes picking people as I did.”

“Once you're in charge of people, it's no longer about you--it's about your team. Any leader who still thinks it's about him is destined to fail.”

Jack Welch – Former CEO of General Electric

Thank you!