Future Trends In Compensation 3qf2o
This document was ed by and they confirmed that they have the permission to share it. If you are author or own the copyright of this book, please report to us by using this report form. Report 3b7i
Overview 3e4r5l
& View Future Trends In Compensation as PDF for free.
More details w3441
- Words: 942
- Pages: 11
Future trends in compensation Leading through uncertain times
A presentation by Martin Emmerich November 2, 2011
© 2011 Towers Watson. All rights reserved.
What do we currently see?
Attraction and retention in today’s economic environment is complicated
Employers say they are having problems attracting critical skill and high-performing employees
The employment deal is still changing
Most organizations expect employees to work more hours than they did prior to the recession and over half expect this to continue
This strain has fallen particularly hard on professional level employees
Employers must take a long-term view to lead successfully in this uncertain environment
Key principles can serve as guides for sustainable talent and rewards programs
towerswatson.com
© 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. P11_001_Future Trends in Compensation_v1.0.ppt
2
What can companies do to face these issues?
Is your employment deal sustainable going forward?
In order to attract, retain and engage key employees, companies should have in place an approach to talent management and reward that manages their risks while remaining vital no matter the economic cycle.
towerswatson.com
© 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. P11_001_Future Trends in Compensation_v1.0.ppt
3
How can companies create a sustainable talent management and reward model?
Agility Adapting programs to changing conditions
Segmentation Defining different employment experiences for different employee segments
Integration Aligning talent management and reward programs with each other as well as to the business strategy and objectives Globally consistent compensation programs
towerswatson.com
© 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. P11_001_Future Trends in Compensation_v1.0.ppt
4
What does that mean? Integration
Align programs with strategic objectives
Align programs with what you stand for both in the market and your EVP
Align talent & rewards programs with each other
Leverage technology to deliver programs
Leverage the performance management process across a range of programs
Integrate your competency model with other programs
towerswatson.com
Segmentation
Define workforce segments and differentiate the employment deal
Be on the look out for emerging segments
Drive diversity
Meet the execution challenge
Agility
Use more flexible reward programs where possible
Monitor program effectiveness to make datadriven decisions
Develop leadership capability and use managers to deliver your programs to meet employee needs
Communicate with employees and then encourage more self-direction
Manage change effectively
© 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. P11_001_Future Trends in Compensation_v1.0.ppt
5
Multinational companies increasingly have globally consistent and integrated programs in place
75% 70%
70%
67%
58%
58%
50%
61%
61% 52%
42%
42% 33%
25%
36% 24%
27%
0% Short-term incentives
Long-term incentives
Performance management
Source: Towers Watson 2011 Talent Management and Rewards Survey. towerswatson.com
Job leveling
Base pay
Sales compensation
Top Management
Recognition programs
Other employees
© 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. P11_001_Future Trends in Compensation_v1.0.ppt
6
With regard to workforce segmentation, companies still have room for improvement
While most organizations formally identify top performers, less than half are identifying critical skill employees or informing high-potentials.
%
68
Formally identify high potential employees
%
%
28 71 Inform employees who have been identified as highpotential employees
Formally identify topperforming employees
%
44
Formally identify employees with critical skills
Source: Towers Watson 2011 Talent Management and Rewards Survey. towerswatson.com
© 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. P11_001_Future Trends in Compensation_v1.0.ppt
7
Not only segmentation, but as well its execution is critical
The importance of segmentation and differentiation needs to be socialized throughout the organization.
Managers and HR need to overcome their unwillingness to treat different employee groups differently, especially since employees already recognize their organizations’ failure to execute these programs well.
Fewer than half of all employees report that high-performing employees are rewarded for their performance
Source: Towers Watson 2011 Talent Management and Rewards Survey. towerswatson.com
© 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. P11_001_Future Trends in Compensation_v1.0.ppt
8
Employees who perceive performance-based pay decisions as fair are more likely to be engaged
Towers Watson study results show that employee engagement matters:
Within a three-year period the operating margin …
5,0%
… increased by 3.7% at companies with high employee engagement *
3,7%
2,5% 0,0% -2,5%
-2%
… decreased by 2.0% at companies with low employee engagement *
-5,0%
* Based on an analysis of 360.000 employees in 41 global companies. towerswatson.com
© 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. P11_001_Future Trends in Compensation_v1.0.ppt
9
In order to ensure agility total rewards need to be designed flexibly
towerswatson.com
© 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. P11_001_Future Trends in Compensation_v1.0.ppt
10
Leading through uncertain times: Leverage three principles to achieve sustainability
Use these three principles
Integration
to improve
Risk Management Segmentation
and achieve
Sustainability Return on Investment
Agility
Although budgets remain tight, these principles can help guide actions organizations can take to reduce human capital risks and increase ROI on their reward and talent management programs.
towerswatson.com
© 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. P11_001_Future Trends in Compensation_v1.0.ppt
11
A presentation by Martin Emmerich November 2, 2011
© 2011 Towers Watson. All rights reserved.
What do we currently see?
Attraction and retention in today’s economic environment is complicated
Employers say they are having problems attracting critical skill and high-performing employees
The employment deal is still changing
Most organizations expect employees to work more hours than they did prior to the recession and over half expect this to continue
This strain has fallen particularly hard on professional level employees
Employers must take a long-term view to lead successfully in this uncertain environment
Key principles can serve as guides for sustainable talent and rewards programs
towerswatson.com
© 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. P11_001_Future Trends in Compensation_v1.0.ppt
2
What can companies do to face these issues?
Is your employment deal sustainable going forward?
In order to attract, retain and engage key employees, companies should have in place an approach to talent management and reward that manages their risks while remaining vital no matter the economic cycle.
towerswatson.com
© 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. P11_001_Future Trends in Compensation_v1.0.ppt
3
How can companies create a sustainable talent management and reward model?
Agility Adapting programs to changing conditions
Segmentation Defining different employment experiences for different employee segments
Integration Aligning talent management and reward programs with each other as well as to the business strategy and objectives Globally consistent compensation programs
towerswatson.com
© 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. P11_001_Future Trends in Compensation_v1.0.ppt
4
What does that mean? Integration
Align programs with strategic objectives
Align programs with what you stand for both in the market and your EVP
Align talent & rewards programs with each other
Leverage technology to deliver programs
Leverage the performance management process across a range of programs
Integrate your competency model with other programs
towerswatson.com
Segmentation
Define workforce segments and differentiate the employment deal
Be on the look out for emerging segments
Drive diversity
Meet the execution challenge
Agility
Use more flexible reward programs where possible
Monitor program effectiveness to make datadriven decisions
Develop leadership capability and use managers to deliver your programs to meet employee needs
Communicate with employees and then encourage more self-direction
Manage change effectively
© 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. P11_001_Future Trends in Compensation_v1.0.ppt
5
Multinational companies increasingly have globally consistent and integrated programs in place
75% 70%
70%
67%
58%
58%
50%
61%
61% 52%
42%
42% 33%
25%
36% 24%
27%
0% Short-term incentives
Long-term incentives
Performance management
Source: Towers Watson 2011 Talent Management and Rewards Survey. towerswatson.com
Job leveling
Base pay
Sales compensation
Top Management
Recognition programs
Other employees
© 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. P11_001_Future Trends in Compensation_v1.0.ppt
6
With regard to workforce segmentation, companies still have room for improvement
While most organizations formally identify top performers, less than half are identifying critical skill employees or informing high-potentials.
%
68
Formally identify high potential employees
%
%
28 71 Inform employees who have been identified as highpotential employees
Formally identify topperforming employees
%
44
Formally identify employees with critical skills
Source: Towers Watson 2011 Talent Management and Rewards Survey. towerswatson.com
© 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. P11_001_Future Trends in Compensation_v1.0.ppt
7
Not only segmentation, but as well its execution is critical
The importance of segmentation and differentiation needs to be socialized throughout the organization.
Managers and HR need to overcome their unwillingness to treat different employee groups differently, especially since employees already recognize their organizations’ failure to execute these programs well.
Fewer than half of all employees report that high-performing employees are rewarded for their performance
Source: Towers Watson 2011 Talent Management and Rewards Survey. towerswatson.com
© 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. P11_001_Future Trends in Compensation_v1.0.ppt
8
Employees who perceive performance-based pay decisions as fair are more likely to be engaged
Towers Watson study results show that employee engagement matters:
Within a three-year period the operating margin …
5,0%
… increased by 3.7% at companies with high employee engagement *
3,7%
2,5% 0,0% -2,5%
-2%
… decreased by 2.0% at companies with low employee engagement *
-5,0%
* Based on an analysis of 360.000 employees in 41 global companies. towerswatson.com
© 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. P11_001_Future Trends in Compensation_v1.0.ppt
9
In order to ensure agility total rewards need to be designed flexibly
towerswatson.com
© 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. P11_001_Future Trends in Compensation_v1.0.ppt
10
Leading through uncertain times: Leverage three principles to achieve sustainability
Use these three principles
Integration
to improve
Risk Management Segmentation
and achieve
Sustainability Return on Investment
Agility
Although budgets remain tight, these principles can help guide actions organizations can take to reduce human capital risks and increase ROI on their reward and talent management programs.
towerswatson.com
© 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. P11_001_Future Trends in Compensation_v1.0.ppt
11
Related Documents 3m3m1z
Future Trends In Compensation 3qf2o
April 2022 0
New Trends In Compensation Management 723c1h
November 2021 0
Future Trends Of Information System In Business 5xx58
November 2019 33
Future Trends In Supply Chain Management 2w5k4b
April 2022 0
Future Trends In Fiber Optics Communication 5z473
October 2022 0
Current And Future Database Trends 5w702q
December 2021 0More Documents from "Ranjana Kejariwal" 4c2g5h
Future Trends In Compensation 3qf2o
April 2022 0
Kushan Period Costumes 2n2e4
October 2019 50