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willistowerswatson.com

GB Rewards Network

10 May 2018

Reward right now – a more dynamic approach for a changing workforce

Reimagine. Reconnect. Reward

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Welcome

Radha Chakraborty, Willis Towers Watson

Today’s event

09:15 – 10:15

10:15 – 10:30

10:30 – 11:15

11:35 – 12:20

12:30 – 13:30

TED-style Talks

Break and transfer

Breakout sessions: choose one of four

Closing remarks and lunch

11:15 – 11:35

12:20 – 12:30

Break and transfer

Fair Pay: A Broken

Contract?

Jessica Norton, Willis Towers Watson

Tamsin Sridhara, Willis Towers Watson

Last time we met

Image: sewing machinists from Ford’s Dagenham plant striking for over sex discrimination in job grading in 1968. Equal Pay Act followed in 1970

What does

“becoming

personal”

feel like?

What was said, what was heard, what was felt

DRIVERGAPS

FTSE100

Hourly Pay

FTSE100

Bonus Pay

Do we have equal pay?

Pay management

Pay infrastructure

Pay increases

Amendments

Assurance

Immediate and longer-term answers

What do we do to close the gap?

Analyse

Persist

Listen

Identify

Immediate and longer-term answers

Where is this leading?

Pay fairness Talent diversity Organisation culture

Living wageEqual pay |

Gender pay

Executive:

Employee equityDiverse talent

GROUP – OWN

LOCAL – COMPLY

Executive

Compensation: Today

and Tomorrow

Mark Reid, Willis Towers Watson

The annual merry-go-round keeps turning

Strong support

Voices against

Little change

Uncertainty

Board-level oversight of broader reward

…and the CEO pay ratio

1 : ?00000!

Pay-for-Performance:

Innovation That

Actually Works

Radha Chakraborty, Willis Towers Watson

Carole Hathaway, Willis Towers Watson

Drivers of change

Return on

investment

Organisations are

seeing little correlation

between performance

management outcomes,

individual/team

productivity and overall

business success

A focus on the

experience

Manager and

employee engagement

in the process has been

relatively low across

sectors

Technological

advances

Facilitate a trend

towards continuous

performance

management ‘on the

go’, through which

employees and

managers can interact

at any time

What is changing…

INTEGRATIONDiscrete performance

management processIntegrated and articulated philosophy –

drives more than reward

DEFINING

PERFORMANCEIndividually orientated

measurementBroader definition of performance

EMPHASIS OF

PROCESSYear-end, event-based

assessmentOngoing conversations with little emphasis

on year-end

FOCUSBackwards looking Focus on performance against objectives and

future potential and contribution

MANAGER

EFFECTIVENESSProcess follower Increased discretion and role as a

performance coach

TRADITIONAL EMERGING>

And what isn’t…

“Kill your performance ratings” – Harvard Business Review

“Reinventing performance management” – Deloitte

Already

taken action

Planning to

take action

Considering

taking action

Not taking

action

Increasing frequency and

improving quality of performance

conversations

33% 23% 24% 19%

Measuring future potential 28% 20% 25% 27%

Implementing new enabling

technology15% 16% 21% 48%

Eliminating performance

ratings/scores entirely8% 3% 15% 74%

Eliminating ratings/scores for PM but

keeping for compensation purposes5% 4% 14% 77%

PREVALENCE OF CHANGES TO THE

PERFORMANCE MANAGEMENT PROCESS

Perception

Reality

Source: Willis Towers Watson EMEA performance management survey (2016)

HIGH PERFORMING

COMPANIES….

• Have maintained and

streamlined their

approach to ratings,

not removed them

• For those who have

gone ratingless, they

have invested heavily

in manager capability

and reviewed their pay

for performance

linkages

Approaches to

Rewarding Digital

Talent

Scott Cullen, Willis Towers Watson

A digital

revolution is

underway

Percent of children

entering school

today who will end

up in jobs that do

not yet exist

Source: Scott McLeod and Carl Fisch, quoted by World Economic Forum Future of Jobs Report, Davos, 2016

without

drivers

willistowerswatson.com 23 23

Stores

without

cashiers

warehouses

warehouses(with no operators)

robots are

coming…

“BAD BOT Google boss

warns over evil ‘sci-fi

style’ robots that could

‘manipulate people’ and

steal your job”

Source: Sean Keach The Sun April 2018

‘Robots will

destroy our jobs –

and we're not

ready for it’

Source: Dan Shewan, The Guardian Jan 2017

Source: WTW Future of Work study 2017

of companies say AI and

robotics will augment

human performance

Despite the

headlines

Number of jobs

created for every

one lost due to

the internet

Source: eonline news

have been

losers

winners

you have

heard of…

WhatsApp to 419 million users in 4 years from launch

Others, you may be surprised at…

Graphic source: Slice Intelligence

The fastest growing online razor and blades brand is Harry’s

Dominos shares rose

5,000%between

2008 and

What does this

mean for digital

jobs and total

reward?

What is a digital employee?

Source (Adapted as wordcloud): CEB TALENTNEURON research 2015 – US top functions and skills

New ways of

getting work

New Roles

attitudes and

preferences

Organisations are in very different places in their digital journey

We’re just

starting out

We’ve made

progress in some

areas of the

business

We don’t have a

strategy for

becoming

digitally enabled

We’re fully

digitally

enabled

We’re on the

way to

becoming full

digitally enabled

Source: Willis Towers Watson Digital Pulse Survey 2018

The four big challenges to attracting and retaining digital talent

established

career path

Perceptions

of Culture,

Brand or

Industry

not pay

enough

Skills

shortages

Do we need to treat digital employees differently?

We need to think about people structures in a

different way

Be innovative in our methods of attracting

digital employees

There may be a need to address pay for some roles

but need to also think about total reward

Please move to the networking

area and to your first chosen

breakout by 10:30

SESSION ROOMFair Pay: A Broken Contract? London Wall

Pay-for-Performance: Innovation that Actually Works

Broadgate 2

(this main room)

Executive Compensation –

Today and Tomorrow

Broadgate 1

Approaches to Rewarding

Digital Talent

Bishopsgate

Pay-for-Performance: Innovation that actually works

John Edwards, RBSTracey Wilson, RBSRadha Chakraborty, Willis Towers WatsonCarole Hathaway, Willis Towers Watson

Closing

remarks

Thank you!

Please leave a

feedback form on

your chair 57

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