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

© 2017 Willis Towers Watson. All rights reserved.


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

2© 2017 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only.


Optimizing your compensation strategy by employing great data and technology

© 2017 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only.3


Does this sound familiar?

4

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!

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

We need to simplify our

approach – one size fits all must be the way to go

– right?


Developing the right compensation strategy for your organization



Our experience tells us we’re at the start of what will be a significant shift in reward practice


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:

willistowerswatson.com 7© 2017 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only.

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?

© 2017 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 8


Compensation in the digital age


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


Levelling your jobs and using market data to price your jobs



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?



Job levelling


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

12

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



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


Clients from small local organizations

with revenues less than $75 million to large multinationals with revenues

greater than $20 billion


CEO vs. Accounting Professional

14

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


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


Job pricing


Developing your salary structures



Salary structure


Running your compensation process



Typical pay review and compensation planning cycle

1 2

34

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



In summary



Ingredients for success



Willis Towers Watson Compensation SoftwareBring data to life


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



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


Thank you!


For More information…

Total Compensation ManagementGlobal Data Services RewardsWillis Towers Watson Compensation Software

Don't dumb down your data - Willis Towers Watson · 2017-10-27 · willistowerswatson.com...

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