Don't dumb down your data - Willis Towers Watson · 2017-10-27 · willistowerswatson.com...
Transcript of Don't dumb down your data - Willis Towers Watson · 2017-10-27 · willistowerswatson.com...
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Don't dumb down your data
Optimizing your compensation strategy by employing great data and technology
October 26, 2017
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Optimizing your compensation strategy with great data and technologyToday’s agenda
• Developing the right compensation strategy for your organization• Levelling your jobs and using market data to price your jobs• Developing your salary structures• Running your compensation process
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Optimizing your compensation strategy by employing great data and technology
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Does this sound familiar?
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How can we be more efficient and effective managing our compensation
process?
How can we move away from using
so many spreadsheets?
How can we bring consistency to
our compensation processes?
How do we know what data to use for market pricing
our jobs?
How can figure out how much we are spending for compensation?
How can we consolidate all our salary surveys
and know how well they are utilized?
How can we make our people managers jobs
easier at comp review time?
Different parts of the business want to do things their own way but our technology
can’t handle it!
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We need to simplify our
approach – one size fits all must be the way to go
– right?
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Developing the right compensation strategy for your organization
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Our experience tells us we’re at the start of what will be a significant shift in reward practice
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Uniformity Individualization
Grade-based Person-based
Traditional employment
Flexible arrangements
Flexible workforce
Rudimentary technology
Innovative technology
Integrated technology
Segmentation
Job-based
Where we’ve been: Where we are: What’s emerging:
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Is it time to review your compensation strategy?
Understand the business, workforce
and drivers of attraction, retention
and high performance
Formulate a compensation
strategy and guiding principles including a
segmentation strategy
Improve programs and processes to
optimize performance
INSIGHTS STRATEGY DESIGN1 2 3
“Are you able to attract and retain the talent that will
drive success now and in the future?
“What feedback are you getting from employees?
“When did you last review your
compensation strategy? Has your organization
changed in the interim?
“Does your current approach drive the
right behaviors?
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Compensation in the digital age
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Traditional approach New reality
Employees never discuss pay and benefit details with each other
“Living out loud” on Glassdoor; emerging legislative agendas that prescribe pay transparency
Jobs are easily identifiable, stable and easy to level and match
Jobs are disaggregating, work is done through other means, new skills and critical roles are emerging
Pay for performance = merit increase and incentive pay based on last year’s company performance + individual “performance rating”
Changing business models and nature of work means challenging the individual performance definition and the role of base pay
“One size fits all” Segmentation and customization
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Levelling your jobs and using market data to price your jobs
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Key considerations in levelling your jobs
Do you have clarity and consistency in your job architecture? Is there good information / knowledge about the jobs?
Do you have different types of jobs you need to level? Executives, people managers, individual contributors, blue-collar, admin.
Is there legislation you need to be mindful of in some parts of the world
Do you have a robust methodology to defend your decisions?
Will you use your job levelling for reward decisions, talent decisions? Both?
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Job levelling
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The basic market pricing processMarket pricing is the process of determining the “going rates” in relevant labor markets for a representative sample of jobs that have similar functions and comparable scope of responsibility
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Step 3 Select positions for analysis
Step 2 Select survey sources
Step 4 Define positions and responsibilities/scope
Step 5 Compare positions to survey jobs
Step 1 Determine relevant labor market
Step 6 Gather, interpret and adjust compensation data
Step 7 Develop market rates
Note: Does NOT include survey submissions
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Willis Towers Watson Data ServicesIndustry, geography and position coverage
Functions/job families
50More than 120 countries acrosssix continents
40covering over
industries
Jobs45,000representingall functions, disciplines, career levels and global grade possibilities
Over
68%FORTUNE 500
70%FORTUNE 1000
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Clients from small local organizations
with revenues less than $75 million to large multinationals with revenues
greater than $20 billion
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CEO vs. Accounting Professional
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Compensation by Organization Size and Geography
Chief Executive Officer Accounting ProfessionalManagement Median Base Salary ($)
Accounting Professional
$3,119
$4,463
$6,892
$8,507
$12,350
$15,073
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
< $1B $1B - $3B $3B - $6B $6B - $10B $10B -$20B
>$20B
Target TDC (000s)
Median Base salary (‘000) by Organization Size
Median Base Salary (‘000) by Geography
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78 77 76 81 81 80
0
20
40
60
80
100
Less than$1 Billion
$1 - $3Billion
$3 - $6Billion
$6 - $10Billion
$10 - $20Billion
Greaterthan $20
Billion
75 77 81 83 86
0
20
40
60
80
100
Atlanta Dallas Chicago Los Angeles New York
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Job pricing
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Developing your salary structures
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Salary structure
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Running your compensation process
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Typical pay review and compensation planning cycle
1 2
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5
2. Gather Performance Ratings
Performance reviews take place.
3. Model Potential Costs Models Understand how the budget will be
distributed Detailed market benchmarking for
roles Union negotiation
4. Finalize Distribution Gain line management
recommendations for discretionary spending / other recommendations
Finalise costs based on performance ratings and union negotiations
5. Finalize and Communicate to Employees
Final governance process for approval
Pay and communicate to EEs
1. Budgeting Affordability Market conditions Organisation position Economic Inflation
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In summary
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Ingredients for success
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Willis Towers Watson Compensation SoftwareBring data to life
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Enables Consistency
Manages Complexity
• Centralize your global survey library
• Simplify management of local pay elements
• Support workforce segmentation when one size does not fit all
Globalizes Compensation
• Multi-country
• Multi-currency
• Multi-language
Improve Efficiency
• Improve efficiency and accuracy by over 50% on analytics and deign work
• Realize a 75% reduction in time required for survey submission file generation
Enables Focus
• Minimize time doing administrative and tactical work
• Focus on strategic, value-add activities
• Integrated Global Job Framework
• Consistency in Benchmarking
• Common Analytics and Reporting
• Design and management of global, regional and/or local compensation programs
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On demand pulse surveys
Annual census surveys
Pre-populated action plans
Automated free-text analysis
Automatic issue prioritization by group
Immediate export to PPT or Excel
Advanced support for multilingual reporting
Workforce dashboards
Workforce analytics
Custom dashboard design and delivery
Workforce planning and scenario modeling
Predictive analytics Labor market
research (U.S.)
Personality questionnaires
Aptitude assessments Pre-hire behavioral
screening questionnaires
Career guidance Situational judgment
tests Leadership
assessments Client self-managed
assessment platforms Individual and
group/team overview reporting
Job leveling (Global Grading System methodology)
Interactive access to Willis Towers Watson compensation data
Survey library for global, cross-vendor data management
Market analysis Compensation program
design Analytics and modeling Compensation planning
and management Total Rewards Portal
Software
• Compensation, HR policies and benefits design practice survey reports for 120 countries
• Global publications and research reports
• Custom surveys and analysis
• Online, interactive reports and analysis
• Advice on market competitiveness and compensation design
Personalized, media-rich experience
Manager and HR community information
Personalized employee dashboards
Client-managed content
HR case management
Total Rewards Portal Software
HR Software, Data and Advisory Services
That’s the Willis Towers Watson difference
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Thank you!
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For More information…
Total Compensation ManagementGlobal Data Services RewardsWillis Towers Watson Compensation Software