The Changing Role of the Compensation Profession

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The Changing Role of the Compensation ProfessionMay 22, 2012 A Research Initiative by the WorldatWork Compensation Advisory Board

2© 2012 Hay Group. All rights reserved

Panelists

Julie Griffin: VP Compensation, ConAgra Foods

J. Ritchie: Corporate VP Comp, Benefits & HR Operations, Microsoft Corp

Cathy Peffen: VP Global Comp & Benefits, Marriott Vacations Worldwide Corp

Tom McMullen: North American Reward Practice Leader, Hay Group


Key research questions

What is the current focus of the compensation function in

today’s business environment?

How will this focus change over the next two to three

years?

What are the implications on organization models,

structures and staff profiles?


Research focus

Variety of organization types

Range of organization size

Senior level reward/HR respondent


Respondent profilen=645 participants

Profile by Organization Size

Profile by Organization Type


Theme 1: Compensation function focus

Delivering a variety of compensation

programs to our employee population

Improving the function's

value proposition to the business

Creating unique, tailored

solutions for the business

Managing existing

compensation programs

59%

68%

66%

54%

72%

68%

27%

38%

27%

78%

84%

82%

76%

87%

83%

60%

68%

64%

57%

55%

53%

66%

57%

63%

69%

79%

69%

46%

36%

36%

100% 80% 60% 40% 20% 0% 20% 40% 60% 80% 100%

Current Focus Greater Focus•All organizations

•Large organizations

•Small organizations

Using performance measures to assess

the effectiveness of the function


Theme 1: Compensation function focus (cont.)

Reducing our compensation

function’s staffing and cost17%

25%

17%

72%

54%

64%

68%

52%

65%

83%

68%

75%

23%

60%

42% 35%

44%

31%

43%

49%

33%

48%

56%

44%

46%

51%

41%

15%

23%

17%

100% 80% 60% 40% 20% 0% 20% 40% 60% 80% 100%

Greater FocusCurrent Focus•All organizations



Streamlining the number of

compensation programs in our

organization

Ensuring compensation execution is

consistent across the organization for most

employees

Ensuring compensation designs are

consistent across the organization for

most employees

Ensuring compensation strategy is

consistent across the organization for

most employees


Theme 2: Reward communications

Communicating the value of

total rewards to employees

Communicating the value of

total rewards to line managers

Improving content and frequency of

compensation-related communications

Seeking feedback from internal

business customers and employees

Using a variety of digital communications to

connect with employees about compensation

17%

17%

64%

68%

83%

75%

23%

42%

15%

33%

43%

31%

35%

34%

0%

31%

25%

71%

54%

46%

24%

62%

66%

23%

60%

71%

74%

48%

52%

67%

71%

100% 50% 0% 50% 100%

Current Focus Greater Focus

•All organizations




Theme 3: Enabling the organization

Compensation function is focused on educating

and enabling employees regarding programs

Compensation function is focused on educating

and enabling managers regarding programs

People managers have a direct accountability for

compensation program implementation

Using HR business partners for primary

customer support around compensation matters

51%

42%

43%

68%

65%

54%

71%

55%

59%

68%

21%

0%

39%

38%

79%

63%

46% 39%

62%

29%

26%

44%

39%

42%

56%

100% 50% 0% 50% 100%






Theme 4: Required skills and competencies

14%

30%

48%

50%

53%

70%

21%

24%

34%

35%

47%

49%

51%

74%

75%

45%

49%

34%

40%

54%

16%

42%

27%

44%

100% 50% 0% 50% 100%

Moving toward a team of professionals

with specific responsibilities and skill sets

Moving toward a team of professionals with

broad areas of responsibility and skill sets.

Improving skills of our staff to better

serve the changing business

Restructuring to better serve

the changing business






Resources

Additional information on this subject can be found on the WorldatWork

website: www.worldatwork.org

The perfect way to sharpen your skills, stay connected and be proactive in

your career development.

For instance, did you know

that WorldatWork offers

personalized Career

Coaching? More than

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comes to career advice

The Changing Role of the Compensation Profession

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