Thom Janssen

Practice LeaderOrganisational Surveys & Insights

Towers Watson

Creating a superior Employee Value Proposition

Agenda:

• The role reward plays in attracting employees• Understanding how to retain top talents• A view on what drives engagement in UAE

The whole employee experience…..

3© 2014 Towers Watson. All rights reserved.

45%of employersindicate thathiring activityhas increasedcompared tolast year.

30%of employersreport thatturnoveris rising.

Talent mobilityhas increased.

Only 31% of employersare able to do a good job ofhiring critical talent.

39% of employers experiencedifficulties with retaining highlyqualified people.

…and is effected by what happens in Middle East:

Sources: Towers Watson 2014 Global Workforce Study, 2014 Talent Management & Rewards Study.

GET (Employee experience) GIVE (Employer expectations)

EVP

1. Organization

2. People

3. Work

4. Rewards

5. Opportunity

Purpose& Values

Jobs,Culture &

People

TotalRewards

1. Measurable performance

2. Discretionary effort

3. Self-investment

4. Values and behavior

The Employee Value Proposition is the“Give and Get” for employees

Employee Value Proposition – why?

Supports organizations to:

Attract the right employees Retain skilled and top-performing talents Engage the workforce in a sustainable way

The 2014 Global Talent Management & Rewards Study Annual study of employers’ views on trends and issues in rewards

and talent management

1,637 Employers participated globally 30+ Middle East participants

The 2014 Global Workforce Study Bi-annual study on employees’ view

32,000 full-time workers 1,800 Middle East respondents

Attraction Drivers

Middle East

Employee View2014

Employee View2012

Career advancement opportunities 1 3Job security 2 2Base pay/salary 3 1Learning and development opportunities 4 4Challenging work 5 -

Sources: Towers Watson 2014 Global Workforce Study, 2014 Talent Management & Rewards Study.

+2

-2

The role of cash in attracting talents has changed…..

Age: < 30 30-39 40-49

1 Career advancementopportunities

Learning and developmentopportunities Base pay/salary

2 Learning and developmentopportunities Job security Job security

3 Challenging work Base pay/salary Career advancementopportunities

4 Base pay/salary Career advancementopportunities

Learning and developmentopportunities

5 Job security Challenging work Organisation’s reputation asgood employer

6 Organisation’s reputation asgood employer

Organisation’s reputation asgood employer Challenging work

7 Vacation/paid time off Vacation/paid time off Organisation’s mission, visionand values

…..particularly true for the new generation

Sources: Towers Watson 2014 Global Workforce Study, 2014 Talent Management & Rewards Study.

Retention DriversEmployeeView 2014

EmployeeView 2012

Base pay/salary 1 1Career advancement opportunities 2 2Job security 3 3Relationship with supervisor/manager - -Learning and development opportunities 5 5Short-term incentives 4 -Trust/Confidence in senior leadership - 4

EmployerView 2014

12-3-

4

5Sources: Towers Watson 2014 Global Workforce Study, 2014 Talent Management & Rewards Study.

Retention; employers overlook the importance of job security:

To get best performance from your people; Sustainably Engage them

Financial impact of Sustainable Engagement

There is much to do still…….

26%Disengaged

16%Detached

36%Highly engaged

22%Unsupported

Driver: Middle East2014

Middle East2012

1. Image(Brand + Integrity) Snr. Leaders

2. Communication Supervisor

3. Supervisor Communication

4. Goals & Objectives Benefits

5. Snr. Leaders Image

Key Drivers of Engagement:

+4

+1

+3

+1

+4

SustainableEngagement

Employer BrandEmployer Brand

ReputationReputation

Integrity in dealingsIntegrity in dealings

TransparencyTransparency

Company PerformanceCompany Performance

Educate on Culture &Values

Educate on Culture &Values

Leading by exampleLeading by example

Support & RecognitionSupport & Recognition

Interest in employee well-beingInterest in employee well-being

Leadership

Driving Engagement:

And less likely to report having difficulty attracting and retaining employeesAnd less likely to report having difficulty attracting and retaining employees

Companies with a clearly defined Employee Value Proposition are: