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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

Reimagine. Reconnect. Reward GB Rewards Network€¦ · Reimagine. Reconnect. Reward . willistowerswatson.com 2 Welcome Radha Chakraborty, Willis Towers Watson. willistowerswatson.com

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Page 1: Reimagine. Reconnect. Reward GB Rewards Network€¦ · Reimagine. Reconnect. Reward . willistowerswatson.com 2 Welcome Radha Chakraborty, Willis Towers Watson. willistowerswatson.com

willistowerswatson.com

GB Rewards Network

10 May 2018

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

Reimagine. Reconnect. Reward

Page 2: Reimagine. Reconnect. Reward GB Rewards Network€¦ · Reimagine. Reconnect. Reward . willistowerswatson.com 2 Welcome Radha Chakraborty, Willis Towers Watson. willistowerswatson.com

willistowerswatson.com2

Welcome

Radha Chakraborty, Willis Towers Watson

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willistowerswatson.com

Today’s event

3

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

Breakout sessions: choose one of four

Closing remarks and lunch

11:15 – 11:35

12:20 – 12:30

Break and transfer

Break and transfer

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willistowerswatson.com

Fair Pay: A Broken

Contract?

4

Jessica Norton, Willis Towers Watson

Tamsin Sridhara, Willis Towers Watson

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willistowerswatson.com5

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

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willistowerswatson.com

What does

“becoming

more

personal”

feel like?

6

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willistowerswatson.com7

What was said, what was heard, what was felt

DRIVERGAPS

FTSE100

Mean

Hourly Pay

20.8%

FTSE100

Mean

Bonus Pay

46%

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willistowerswatson.com8

Do we have equal pay?

Audit

Pay management

Pay infrastructure

Pay increases

Amendments

Assurance

Immediate and longer-term answers

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willistowerswatson.com9

What do we do to close the gap?

Analyse

Track

Persist

Listen

Identify

Immediate and longer-term answers

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Where is this leading?

Pay fairness Talent diversity Organisation culture

Living wageEqual pay |

Gender pay

Executive:

Employee equityDiverse talent

10

GROUP – OWN

LOCAL – COMPLY

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Executive

Compensation: Today

and Tomorrow

Mark Reid, Willis Towers Watson

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The annual merry-go-round keeps turning

£

Strong support

Voices against

Little change

Uncertainty

12

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Board-level oversight of broader reward

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…and the CEO pay ratio

1 : ?00000!

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willistowerswatson.com15

Pay-for-Performance:

Innovation That

Actually Works

Radha Chakraborty, Willis Towers Watson

Carole Hathaway, Willis Towers Watson

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willistowerswatson.com16

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

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willistowerswatson.com17

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>

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And what isn’t…

“Kill your performance ratings” – Harvard Business Review

“Reinventing performance management” – Deloitte

18

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

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Approaches to

Rewarding Digital

Talent

19

Scott Cullen, Willis Towers Watson

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A digital

revolution is

underway

20

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willistowerswatson.com21

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

%

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willistowerswatson.com

Cars

without

drivers

22

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willistowerswatson.com 23 23

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Stores

without

cashiers

24

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willistowerswatson.com 25© 2018 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 25

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© 2018 Willis Towers Watson. All rights reserved.

Dark

warehouses

26

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© 2018 Willis Towers Watson. All rights reserved.

Dark

warehouses(with no operators)

27

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willistowerswatson.com 28© 2018 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 28

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© 2018 Willis Towers Watson. All rights reserved.

The

robots are

coming…

29

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“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

30

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© 2018 Willis Towers Watson. All rights reserved.

‘Robots will

destroy our jobs –

and we're not

ready for it’

31

Source: Dan Shewan, The Guardian Jan 2017

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Source: WTW Future of Work study 2017

of companies say AI and

robotics will augment

human performance

Despite the

headlines

%

32

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Number of jobs

created for every

one lost due to

the internet

Source: eonline news

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There

have been

losers

34

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willistowerswatson.com35© 2018 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only.

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willistowerswatson.com 36© 2018 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 36

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willistowerswatson.com 37© 2018 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 37

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willistowerswatson.com 38© 2018 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 38

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And

winners

39

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Some,

you have

heard of…

40

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willistowerswatson.com 41© 2018 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only.

41

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willistowerswatson.com 42© 2018 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 42

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WhatsApp to 419 million users in 4 years from launch

© 2018 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 43

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Others, you may be surprised at…

44

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© 2018 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only.

Graphic source: Slice Intelligence

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

45

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© 2018 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 46

Dominos shares rose

5,000%between

2008 and

2017

46

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© 2018 Willis Towers Watson. All rights reserved.

What does this

mean for digital

jobs and total

reward?

47

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What is a digital employee?

48

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

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

New ways of

getting work

done

New Roles

New

attitudes and

preferences

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Organisations are in very different places in their digital journey

49© 2018 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only.

We’re just

starting out

13%

We’ve made

progress in some

areas of the

business

40%

We don’t have a

strategy for

becoming

digitally enabled

20%

We’re fully

digitally

enabled

6%22%

We’re on the

way to

becoming full

digitally enabled

Source: Willis Towers Watson Digital Pulse Survey 2018

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The four big challenges to attracting and retaining digital talent

© 2018 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 50

No

established

career path

Perceptions

of Culture,

Brand or

Industry

We do

not pay

enough

1

2

3

4

Skills

shortages

Source: Willis Towers Watson Digital Pulse Survey 2018

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Do we need to treat digital employees differently?

© 2018 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 51

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

Source: Willis Towers Watson Digital Pulse Survey 2018

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Please move to the networking

area and to your first chosen

breakout by 10:30

52

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

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Pay-for-Performance: Innovation that actually works

© 2018 Willis Towers Watson. All rights reserved.

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

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Closing

remarks

56

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Thank you!

Please leave a

feedback form on

your chair 57