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willistowerswatson.com© 2018 Willis Towers Watson. All rights reserved.

24-25 May 2018

Getting Rewards Right – From big ideas to practical solutions

A Willis Towers Watson Modernising Total Rewards Event

2018 European Rewards Conference

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WelcomeJoris Wonders, Willis Towers Watson

© 2018 Willis Towers Watson. All rights reserved.


“We're not here to predict the future. We're here to help create agile organisations that can thrive in uncertainty.”

- Rowan Douglas, CBE


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Day one agenda

4

14:15 – 15:15: Getting Rewards Right – Why It Matters for Your People and Your BusinessAndrew Bates, GSK with Chantal Free and Amol Mhatre, Willis Towers Watson

15:15 – 15:45: Coffee break and networking

15:45 – 16:35: Breakout sessions (choose one of four)See descriptions in your conference brochure

17:05 – 17:55: Breakout sessions (choose one of four; repeat sessions)See descriptions in your conference brochure

19:00 – 19:30: Pre-dinner drinks in the Foyer19:30: Dinner begins in the Ballroom




Time to talk: discuss today’s total rewards hot topics during breaks

5

Join our subject-matter experts and peers in the networking corners

EQUAL PAYTamsin SridharaMichelle Ryan Joris Wonders

JOB LEVELLING AND ARCHITECTURE

Ralph LeyssensRuchi Arora

SHAREHOLDERS’ RIGHTS DIRECTIVE

Piia PilvSven Slavenburg

Noemie Tack


Check out our HR Software booth to view a demo of Willis Towers Watson Compensation Software and Market Data


Getting Rewards Right – Why It Matters for Your People and Your Business

An interview with Andrew Bates, GSK and Chantal Free, Willis Towers Watson

Facilitated by Amol Mhatre, Willis Towers Watson© 2018 Willis Towers Watson. All rights reserved.


Day one agenda

7

14:15 – 15:15: Getting Rewards Right – Why It Matters for Your People and Your BusinessAndrew Bates, GSK with Chantal Free and Amol Mhatre, Willis Towers Watson


15:45 – 16:35: Breakout sessions (choose one of four)See descriptions in your conference brochure

17:05 – 17:55: Breakout sessions (choose one of four; repeat sessions)See descriptions in your conference brochure

19:00 – 19:30: Pre-dinner drinks in the Foyer19:30: Dinner begins in the Ballroom




Breakout sessions begin at 15:45

8

Sales Incentives after a Merger: How TelenetHarmonised Sales Compensation for Customer FocusStudio 2

Modernising Rewards at Allied Irish Bank: How Getting the Basics Right Drives Talent and Culture ChangeStudio 1

A Software-Enabled Journey at Müller Service GmbH: Modernising Market Analysis & Compensation DesignStudio 4

Total Rewards Strategy at Maersk: Giving Employees a VoiceStudio 5

All sessions repeat during second

breakout session


willistowerswatson.com© 2018 Willis Towers Watson. All rights reserved.

24-25 May 2018

Getting Rewards Right – From big ideas to practical solutions

A Willis Towers Watson Modernising Total Rewards Event

2018 European Rewards Conference


Day Two WelcomeChantal Free, Willis Towers Watson



Day two agenda

11

08:30 – 09:00: Day one recap and day two introduction Chantal Free, Willis Towers Watson

09:00 – 10:00: General session – TED-style talksLed by Willis Towers Watson experts

10:00 – 10:10: Transfer

10:10 – 11:00: Day two breakout sessions (choose one of four)See descriptions in your conference brochure




Day two agenda (cont.)

12

12:20 – 12:30: Transfer

13:15 – 13:30: Closing remarksJoris Wonders and Chantal Free, Willis Towers Watson

13:30 – 15:00: Lunch

11:30 – 12:20: Day two breakout sessions (choose one of four; repeat sessions)See descriptions in your conference brochure

12:30 – 13:15: The Evolved Organisation and Future of Total RewardsJohn Bremen, Willis Towers Watson



Today’s TED-style talks

The Evolving Career Framework: Are Agile and Teal Organisations the End of Jobs as We Know It?Ralph Leyssens and Ruchi Arora

Corporate Governance and the Shareholders’ Rights Directive –What You Need to Know (and Do)Sven Slavenburg and Piia Pilv

Modernising Benefits for a New World of WorkAmol Mhatre

Fair Pay: From Compliance to OpportunityJoris Wonders and Tamsin Sridhara



The Evolving Career FrameworkAre Agile and Teal Organizations the End of Jobs as We Know Them?

Ralph Leyssens and Ruchi Arora, Willis Towers Watson



Cause between dream and action there are laws, and practical objections…

Willem Elsschot, The Marriage

“

“


Want tussen droom en daadstaan wetten in de weg enpraktische bezwaren…

Willem Elsschot, Het Huwelijk

“ “


More Ways to Get Work DoneConventional Ways of Work


Time to reach 50 million users

Telephone

Radio

TV

Internet

Facebook

Angry Birds

75 years

38 years

13 years

4 years

3.5 years

35 days



The Emerging “Robo-gig” EconomyTechnology, digital media and robotics are transforming Work and Jobs

Sources: Digital Media & Society, World Economic Forum in collaboration with Towers Watson; Towers Watson Research; also reference McKinsey & Co

A truly connected world

collaboration…

Hum

an & m

achine

Social & OrganizationReconfiguration

All inclusive

Glo

bal T

alen

t Mar

ket

21© 2018 Willis Towers Watson. All rights reserved.


Corporate Governance and the Shareholders' Rights Directive: What You Need to Know (and Do)Sven Slavenburg and Piia Pilv, Willis Towers Watson



Shareholder pressure starts in the Netherlands in the 1600s...

26


…has followed major economic crashes ever since

27

First shareholder actions contesting executive bonuses

First newspaper articles on excessive pay levels

Tax rules for base salaries in the US lead to growth in LTIs

Shareholders demand more accountability and regulation as share prices slide

Regulation of pay in financial services companies

EU SRD2007-2017Financial crisis, economic stagnation

1990-2000Internet bubble bursts in 2000

1920-1940Great depression

1900 -1920Start of annual bonus plans


Policy Vote

Report Vote

EUD SRD introduces Say on Pay vote in all EU member states leading to…


Transparency of variable pay targets

Are our pay-outs defendable?

Increased remuneration disclosureCEO pay ratio?

Investor viewsConvergence to new market norm?

29

…further scrutiny on pay and pay-for-performance alignment


Preparation is starting in 2018

2020Shareholder voting

2019Year of implementation

2018Year of review

30


Modernizing Benefits for a New World of WorkAmol Mhatre, Willis Towers Watson



Definition*

*Oxford English Dictionary

modernize(British modernise)

VERB[with object]

adapt (something) to modern needs or habits, typically by installing modern equipment or by adopting modern ideas or methods.



Why modernize benefits?

Benefits matter – employees want core protection and choice

Health and financial well-being are important for a productive workforce

Costs of benefits are a growing concern

Companies are mostly focused on redesigning their plans

Local leadership and external benchmarking drive decisions



Modernizing benefits: How companies design, deliver and manage an optimal portfolio

Dimension Modernization Objectives

Benefits program Design an optimal benefits portfolio in line with objectives, market norms and employee preferences.

Financing Optimize the financing cost of benefits by allocating costs and risks efficiently.

Employee Interface and Experience

Enable employees to make informed decisions about their benefits and increase employee appreciation.

Administration and Operations

Efficiently administer benefits by leveraging technology and allocating organisation resources.

ProgramManagement

Use data-driven insights to govern strategic benefits related decisions.

© 2018 Willis Towers Watson. All rights reserved. 34


Fair Pay: From Compliance to OpportunityTamsin Sridhara and Joris Wonders, Willis Towers Watson


36

Last time we met

Image: sewing machinists from Ford’s Dagenham plant striking for over sex discrimination in job grading in 1968. Equal Pay Act followed in 1970 © 2018 Willis Towers Watson. All rights reserved.

What “personal” feels like

37© 2018 Willis Towers Watson. All rights reserved.

38

UK gender pay: what was said, what was heard

Gender PayEqual Pay


It’s about pay It’s about progression

39

The common questions


Do we have equal pay?

How do we build greater talent diversity?

40

Do we have equal pay?

Audit

Pay managementPay infrastructure

Pay increases

AmendmentsAssurance

Immediate and longer-term actions


41

How do we build greater talent diversity?

Analyse

Track

Persist

Listen

Identify

Immediate and longer-term actions


Where is this leading?

Pay fairness Talent diversity Organisation culture

Living wage Equal pay | Gender pay

Executive: Employee equity Diverse talent

42

GROUP – OWN

LOCAL – COMPLY



Day two agenda

43

08:30 – 09:00: Day one recap and day two introduction Pierangelo Scappini, Poste Italiane SpA with Chantal Free, Willis Towers Watson

09:00 – 10:00: General session – TED-style talksLed by Willis Towers Watson experts

10:00 – 10:10: Transfer

10:10 – 11:00: Day two breakout sessions (choose one of four)See descriptions in your conference brochure




Day two agenda (cont.)

44

12:20 – 12:30: Transfer

13:15 – 13:30: Closing remarksJoris Wonders and Chantal Free, Willis Towers Watson

13:30 – 15:00: Lunch

11:30 – 12:20: Day two breakout sessions (choose one of four; repeat sessions)See descriptions in your conference brochure

12:30 – 13:15: The Evolved Organisation and Future of Total RewardsJohn Bremen, Willis Towers Watson



Breakout sessions begin at 10:10

45

Creating Competitive Local Employee Benefit Programs at OntexStudio 2

Executive Pay-for-Performance at Heineken: Setting Robust Targets Using Predictive AnalyticsStudio 4

Compensation and Benefits Harmonisation at ASML: Making Rewards Work in an M&A IntegrationStudio 1

Evolving Reward and Maintaining Engagement in a Co-Ownership Model at John Lewis Partnership Studio 5


All sessions repeat during second

breakout session


The Evolved Organization: The Future of Total Reward is HereJohn M. Bremen, Willis Towers Watson


“Without a sense of purpose, no company can achieve its full potential…[and] will provide subpar returns to investors…”

— Larry Fink, BlackRock, 2018

© 2018 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 47

Source: Blackrock Larry Fink’s Annual Letter to CEOs, 2018

An Evolving Mindset…

© 2018 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only.

The Future isn’t coming…It’s here

48

49© 2018 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only.

“We’re not here to predict the future. We’re here to help agile organizations that can thrive in uncertainty.” - Rowan Douglas, CBE (Willis Towers Watson)

So it's official: Facebook is now the world's

largest country

Source: eonline news


The number of text messages sent and received in one day

exceeds the populationof the planet

Source: wikipedia.com.


Number of jobs created for every one lost due to the internet:

Source: eonline news

2.6


The number of independent professionals, or freelancers, in

the EU rose by 24% from 7.7 million to 9.6 million between

2008 and 2015

Source: Staffing Industry Analysts


54% of EU jobs at risk of computerization

Source: Bruegel.org


Baby Boomers areretiring at the rate of one every 9 seconds

between now and 2029

Source: USA Today Money


Millennials accounted for 24%of the adult population in the EU

in 2013

Source: Pew Research


Generation Z is entering the workforce in large

numbers

Source: wsj.com


Percent of children entering school today who will end up in

jobs that do not exist yet65%

Source: Scott McLeod and Carl Fisch, quoted by World Economic Forum Future of Jobs Report, Davos, 2016


85% of jobs that will exist in 2030 haven’t been invented yet

Source: Huffington Post.


Modernizing HR and the Evolved OrganizationWhat matters to today’s forward-thinking CHRO…


Technology-driven cultural transformation

Wea

rabl

es Creating the enterprise-wide leader

Deconstruction of work

Stability vs. Agility

Technology implications on human behavior

Psyc

hom

etric

sDisruption of technology on talent markets

Creating global community in virtual environment

Speed to performance

#AGILEHR

Future of Work. Future skills.Outcome thinking

Productivity optimizationHarnessing new Talent

Speed to innovation

Artificial IntelligenceSustainable talent platforms

Org

aniz

atio

nal C

hang

e

Adept at rewiring

Team collaboration, ideation, and incubation

Speed/agility of making “new” happenData privacy and security

Talent Philosophy

machine learning

Process simplification

VUCA World

Robotics

Enabling new behaviors

Learning orientation

Soci

al m

edia

DESIGN THINKING

the career journey Psychological Safety Augmented reality

Per

sona

lizat

ion

60

The VUCA world continues…even more so…


We need:

VUCA: Judith Hicks Stiehm & Nicholas W. Townsend, The U.S. Army War College: Military Education in a Democracy; Temple University Press, 2002.1. Denise Caron, CTO Next IT.2. Bob Johansen, Distinguished Fellow, Institute for the Future.

“The kind of strategy that works is to be very clear about where you are going but very flexible in how you get there2

“Volatile… a rapid rate of change

Uncertain… unclear about future implications

Complex… multiple competing/conflicting forces

Ambiguous… lack of clarity about what events will mean — even as they occur

Clear intentClear directionClear visionAgility to adapt to a changing world1

61


Conflicting Forces on HR…

62

Impacton HR

Technologyand

Digitization

Employeeas the

Consumer

The TalentExperience

SkillShortages

PoliticalShifts andRegulation

EmployeeWell-Being

&Purpose

Roboticsand AI

GenerationalShifts

HumanCapital Risk

Modernization

VolatileUncertainComplex

Ambiguous

Work andJob Scarcity

New MarketEntries

Talent aspirations have changed…and so have the risks


Then NowReally Now

Yet, talent aspirations today translate far beyond just flexiblework arrangements


Later Career Talent Earlier Career Talent

Live to work Work to live

Individualachievement Group oriented

Corner office Flexible schedules

Prestige Giving back


The Evolved Organization

65

Exponential advances in technology’s capabilities, reshaping the ecosystem of the workplace


The Evolved Organization

67

Organization Evolution


Source for Distributed Network Organization: Paul Baran, Rand Corporation, 1964

Small Groups(unaffiliated)

Small Groups(locally affiliated)

LeadershipHierarchy

Functional Hierarchy/

Bureaucracy

Network(Paul Baran)

Tribal/Nomadic Coalition Command-and-Control

Industrial Distributed

Tight/Isolated Tight/Isolated Controlled Specialized Dynamic/Agile

Optimizing their assets and modernizing their approach

Evolved organizations connect the dots while coloring outside of the lines…


Leadership

Pace, agility, and adaptation to change

Culture of innovation

Employee Well-being and purpose

Growth Mindset

Talent – and the talent experience

Work and way of getting work done

Organization

Total Rewards


“The rate of internal change needs to exceed the rate of external change”

The traditional career path is making way for a portfolio of broad and nonlinear work experiences


Evolved organizations… Offer a wider array of professional

development opportunities

Embody agile thinking, interpersonal and communication skills and digital adaptation — skills that are necessary for the changing nature of work

Prepare and promote talent that will evolve in parallel with that of the organization

The Evolved Organization is built within a different type of ecosystem: transforming culture and pace by embracing attributes that focus on the work and talent experience


DIGITAL

AGILITY COLLABORATION EMPATHY

IDEATION

IMPACT

INNOVATION

HEALTHY

INSPIRATIONAL LEADERSHIP

LEADERSHIP CULTUREPERSONALIZATION

RESPONSIBILITY

RISK TOLERANCE

WELL-BEING

“Believe more in yourself and your capabilities. Don’t be afraid to fail. And don’t constantly worry that you have to prove yourself.” — Bridget Paradise, CHRO, Citadel, in Slate

…and redefining what culture, purpose and values mean in the process


“The essence of inclusion is to help each of us to develop more compassion and understanding so we can all be more effective.” — Myrna Chao, I&D Thought Leader, Willis Towers Watson

PSYCHOLOGICAL SAFETY

ACCOUNTABILITYOPEN-MINDEDNESS

INCLUSION & DIVERSITY

SOCIAL WELL-BEING

VULNERABILITYRESPECT

CHOICE

#LIVINGOUTLOUD

COMPASSION GROWTH MINDSET

INTERDEPENDENCE

CONVERGENCESPIRITUALITY

HOLISTIC THINKING

TAKING RISK

EMPOWERMENT

Google identified that psychological safety

was the most critical factor to making a team work

Source: Harvard Business Review, 2016


Psychological Safety

What is psychological safety?“A shared belief held by members of a team that the team is safe for interpersonal risk-taking and a feeling of confidence that a team will not embarrass, reject or punish someone for speaking up”

Source: “Psychological Safety and Learning Behavior in Work Teams”by Amy Edmondson


How do we measure it?• Pulse/engagement surveys • Glass door comments• Virtual focus groups• 360 surveys

Psychological safety in the headlines…

Why psychological safety mattersIt directly links to business results by: Increased innovation and creative problem solving

in teams Enhanced attraction and retention More effective managers and teams Increased employee engagement Direct contribution to a more inclusive workplace

1 in 3 employees are not sure if is safe to speak up at work (Source: WTW US National Norm)

74

Attributes of the Evolved Leader


Agile in adapting to uncertainty

Willing to challenge the status quo (and get bruised in the process)

Have a tolerance for risk/failure

Recognize and respect

Inspire, impact, and leadwith purpose

Leaders who are relentless in their drive to change will influence the way employees think, the pace in which cultures evolve, and the way in which work gets done.

Source: Willis Towers Watson CHRO Thinking Ahead Group

Purpose-driven companies outperform the market by

42%

Source: DDI, EY, Conference Board Global Leadership Forecast 2018



What are the Implications for Total Reward

77

Total Reward is no longer just about competitive practice and design…optimization and the talent experience are essential


Focus on being a workforce data/analytics expert (and understanding talent as consumers) as much as technical expert

Focus on career journey (horizontaland vertical), as opposed to path

Focus on new skills (agility, digital, communication/translation, global deployment)

Focus on linkages between Total Rewardand talent well-being

Move from rigid to inspired, from risk averse to speed2talent, innovation, and growth mindset

Enable organization purpose and instill continued healthy company values through culture

Instill evolved mindset through flexibility, personalization and leadership culture

Evolved organizations understand what it means to optimize their Total Reward spend


50%

9%

7%3%

15%

4%6%

Base PayBonusRetirementDentalMedicalRecognitionOther

What is the best level ofinvestment in employees?

What is the best allocation of that investment to maximise

desired behaviours(e.g., retention, motivation)?

Do the answers vary by organization level, geography, business unit, other demographic characteristics?

Total Investments in Selected Rewards

Optimize

Total Reward remains an integral component of the Talent ExperienceBut needs to function in the context of the four fundamental dimensions


tXTalent

Experience

Talent Experience

Doing great work in athriving organization

Do I enjoy the work I do? Am I able to deliver what you want?

Individual growth and reward opportunities in return

Do the rewards motivate? Do I understand how they work?Where’s my career going?

A strong sense of purpose

Do I believe in where you are going? Do I know how I support that?

Connection with greatpeople and leaders

Do leaders inspire me? Do diversity and culture enable

high-performing teams?Will I be working with great people?

71%

51%

Engagement: Increase employee engagement in health and well-being

Employee experience: Enhance the technological and physical environment around your health care and well-being programs

The majority of employers are seeking to improve the consumer experience

Source: 2017 Willis Towers Watson Benefits Trends Survey, Western Europe.

Importance over the next three years (‘% of ‘Very important’ or ‘Important’)

A majority of employers consider engagementand consumer experience to be a priority over the next three years*:


Talent Experience

Offer choice in health benefit options 50%

Offer choice and variety in the types of benefits 49%

Provide employees with greater flexibility to direct employer-provided benefit payments 43%

To what extent will the following be important to

enhancing member experience with your

health care benefits over the next three years?

Goal is a personal, social, consumer-grade experience


What’s in it for me and others? Which outcomes are the best for me?

The team? How does it impact positive outcomes?

How do my benefits work? How can I save money? How am I getting/giving feedback?

Talent Experience

This stuff actually works….Best practice companies achievebetter outcomes

Talent Experience


3xas likelyto report employees are highly engaged

93%more likelyto report significantly outperforming their industry peers financially

10%less likelyto report difficulty attracting and retaining key employees segments

27%fewer regrettable new hires in the first year

17%lower voluntary turnover

Well-being has emerged as a broader strategic principle for both mainstream and evolved organizations

79%Differentiate our health and

well-being from other organizations with which we compete for talent, customize for critical workforce segments

PHYSICAL

Identify and effectively manage population health

risks and chronic conditions across the workforce

63%

EMOTIONAL

Identify and manage stress and behavioral health issues across

the workforce

70%

FINANCIAL

48%Improve financial well-being and retirement readiness

SOCIAL

Increase focus on creating social connections in communication (stories, examples etc.) or look to build a culture of health and well-being in the workplace to encourage healthy behaviors in the next three years

62%

Source: 2017 WTW Benefits Trend Survey, Western Europe.Note: Percentage responding ‘Very important’ or ‘Important’.


Percentage of companies that say these components of well-being are important over the next 3 years

84

Well-Being

Employees’ financial concerns are on the rise


Source: 2017 Global Benefits Attitudes Survey, Western Europe; 2017 Benefits Trends Survey, Western EuropeEmployer sample: Companies with at least 1,000 employees. Employee sample: Full-time employees.

have become a more important issue for employees over the last two or three years

(% of ‘Strongly agree’ or ‘Agree’)

55% 55%Employer Employee

53% of employers agree to take an active role in encouraging employees to better manage their personal finances

85

Well-Being

Financialconcerns

Over one-third of households in Western Europe are living paycheck to paycheck

Live paycheck to paycheckNo significant savings

Strongly agree or agree37%

Lack of financial resilienceCould not come up with $2,000 if an unexpected need arose within the next month

Could certainly not or probably not33%

Financial Well-Being Hierarchy


Equity (LTI) Retirement DB DC Healthcare/wellness Compensation Training LTD HSA Career opportunities

Total Rewards DriversFinancialIndependence

Wealth Creation

Long-Term Savings

Short-Term Savings

Positive Cash Flow

Debt Control

Solvency

Non-Poverty

Financial Literacy

Well-Being

Financial worries and health

issues

Financial worries and no health

issues

No financialworries andhealth issues

No financial worries and no health issues

42% 14% 25% 19%

Highly engaged 22% 34% 36% 46%Disengaged 35% 28% 25% 15%

Absence (days) 8.2 3.2 5.6 2.3Presenteeism (days) 13.3 15.0 13.8 10.3

Expect to work past 70 20% 19% 9% 9%High stress 59% 47% 32% 26%

Financial satisfaction 31% 43% 63% 73%Live paycheck to paycheck 51% 51% 21% 17%

Financial well-being, health and stress are interconnected and issues compound


Note: Employees with health issues has either fair, poor or good health in general.Source: 2017 Global Benefits Attitudes Survey, Western Europe.

87

Well-Being

43%

59%

73%

62%57%

38%

23% 26% 25%

44%

54%

65% 68%

2004 2006 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Employer confidence in offering health care benefits over the next 10 years continues to growHow confident are you that your organization will continue to sponsor health care benefits to active employees in 10 years? (Very confident)

Sample: Employers with at least 1,000 employees.Note: Responses represent “Very confident.” Years 2004-2017 are based on prior years of the survey. Source: 2018 Willis Towers Watson Voluntary Benefits Survey; Willis Towers Watson Best Practices Survey, various years; Willis Towers Watson Emerging Trends Survey, 2018

5-Year Confidence: 96% very confident, that the organization will continue to sponsor health care benefits in five years.

Well-Being


Top benefits priorities over the next three years


Source: 2017 Benefits Trends Survey

Western Europe

Central & Eastern Europe Middle East Africa Asia Pacific Latin America

Manage benefit costs

better

Managebenefit costs

better

Information in one place

Greatergovernance

and oversight

Managebenefit costs

better

Managebenefit costs

better

Influence employee behaviors


Managebenefit costs

better

Managebenefit costs

better




Greatergovernance

and oversight

Greatergovernance

and oversight


Greatergovernance

and oversight

Greatergovernance

and oversight

Transparency of benefit

costs

Simplify administration


costs




Greatergovernance

and oversight




costs

Simplify administration

Health & well-being

programs

1

2

3

4

5

Well-Being

Strategy navigator framework to modernize benefits Items for consideration


Benefits Program Financing Employee Interface and Experience

Administration and Operations

Program Management

Optimal portfolio of benefits

Efficient financing of cost and risk

Employee engagement & appreciation

Operational efficiency Data-driven decision-making

Voluntary benefits for

flexibility and choice

Core protection & top up/down

Operating cost management

Risk retention & captive strategy

Risk transfer

Talent value proposition

Employee communication

Education and decision-making

support

Automation & technology for administration

Resource optimization

Participant data analytics & reporting

Market alignment of

benefits Purchasing scale leverage

Program analytics & reporting

Data management

Vendor & advisor management

Governance

Compliance

Wellbeing

Cost sharing

Self-service

Customer support

Operational policies and procedures

Well-Being

Getting to now… The required new skill sets and capabilities [for the future]


Digital Skills

0%

10%

20%

30%

40%

50%

60%

70%

Total Americas APAC MEA Europe

Digital business skills

Ability to work virtually

Understanding of corporate IT

Digital design skills

Ability to use social media and web 2.0

Agile Thinking

0%

10%

20%

30%

40%

50%

60%

70%

Total Americas APAC MEA Europe

Ability to consider and prepare for multiple scenarios

Innovation

Dealing with complexity and ambiguity

Managing paradoxes, balancing opposing views

Ability to see the “big picture”

Source: Global Talent 2021 Study conducted by Oxford Economics and Towers Watson, 2012.

91

New Skills

Getting to now… The required new skill sets and capabilities [for the future]


Interpersonal and Communication Skills

Global Skills

Source: Global Talent 2021 Study conducted by Oxford Economics and Towers Watson, 2012.

0%

10%

20%

30%

40%

50%

60%

TOTAL Americas APAC MEA Europe

Co-creativity and brainstorming

Relationship building (with customers, partners, government, etc.)

Teaming (including virtual teaming)

Collaboration

Oral and written communication

0%

10%

20%

30%

40%

50%

60%

TOTAL Americas APAC MEA Europe

Ability to manage diverse employees

Understanding international markets

Ability to work in multiple overseas locations

Foreign language skills

Cultural sensitivity

92

New Skills

New jobs are emerging…However a number of current baseline skills will continue to be relevant


MYTHWorkplace automation will have a largely negative impact on workers and jobs.

BUSTEDAutomation will result in new combinations of work, talent, skill requirements and work relationships (e.g., FTE, PT, contingent).

AI EthicsEvaluator

RobotTrainer

Virtual Culture Architect

Data, Talent &AI Integrator

Cyber Ecosystem Designer

The top 10 skills that will be in demand by all employers by 2020

Source: Future of Jobs Survey, World Economic Forum, January 2016Source: CHREATE Consortium

10 Cognitive flexibility

9 Negotiation skills

8 Service orientation skills

7 Judgment & decision making

6 Emotional intelligence

5 Coordinating with others

4 People management

3 Creativity

2 Critical thinking

1 Complex problem solving

New Skills

The Evolved CHRO: Chief employee experience officer


Personnel director Tactical Operationally focused Employee as cost Implement programs Local Manager/director level

Vice president, HR Broader Organization focused Employee as resource Design programs National Vice president level

CHRO Strategic Business focused Employee as asset Direct programs Global C-suite level

Chief employee experience officer Futurist/strategist Differentiation focused Employee as value Transcend programs Borderless Board advisor

New Skills

The Evolved CHRO: Chief employee experience officer


New Skills

CHRO

“I direct programs to balance the needs of employees, the company and shareholders.”

Chief employeeexperience officer

“I create an employee experience that unleashes the potential of our talent to create

incremental value for our customers and shareholders.”

Using “big data” and workforce analytics strategically


Causal Analysis/ Controlled Evaluation

Projections/ Future-State Modeling

Trending

Bench-marking

ExternalReference Point

Directional Insight Future Risk Management

Outcome Optimization

Return on Investment

How are we performingrelative to benchmarks?

Foundational

Analytical Sophistication

How are we performing over time?

How do we predict performance?

How do we drive performance?

How are weperforming today?

InternalTracking

Dashboard/ Metrics

Reporting

Global Data Warehouse

How do we access data to monitor performance?

Data Management

96

Workforce Data/Analytics

The HR time spend continues to morph…


0%

25%

50%

75%

100%

1950 1960 1970 1980 1990 2000 2010 2020 2030 2040

Operations Program Design Employee Analysis

Percent of Time

Workforce Data/Analytics

Top Ten Total Reward themes


Evolved Mindset

.

.

.

Future FocusedEmerging work dynamics and skills and multi-generational workforce re-write the deal

Technology Advancements Expansion of digitization ofthe Total Rewards deliveryand experience

Good GovernanceBeing agile and nimble to adaptto changing, fast-movingbusiness strategies

Analytics & InsightsEvaluating what matters with Total Rewards analytics and data measurement

SegmentationMore tailored Total Rewards with increased choice for workers

Pay TransparencyLegislative and social mediaincrease public scrutiny

Expansion of worker choiceand voluntary benefits

Consumerism & Flexibility

Renewed focus on financial security now and in the future

Financial Concerns

Talent Experience Emphasis on workplace differentials that enhance the environment and Talent Value Proposition

Well-beingContinued focus on holistic physical, financial, social and emotional health


Becoming an #evolved

organization

Evolving the journey with your organization


8 Empower HR to be a catalyst for evolving the organization

7 Invoke a leadership culture resonate of empathy, authenticity, responsibility, respect, talent recognition, and risk-acceptance

6 Enable organization purpose and instill continued healthy company valuesthrough culture

5 Move from rigid to inspired, from risk averse to speed2talent, innovation, andgrowth mindset

4 Focus on linkages between Total Rewards, the talent experience and total well-being

3 Leverage workforce data/preferences to respond to employee choice, consumerism and personalization

2 Focus on the career journey (horizontal and vertical), as opposed to path

1 Focus on new skills (agility, flexibility, digital, communication/translation,global deployment)




5Focus on linkages between Total Rewards, the talent experience and total well-being







5Focus on linkages between Total Rewards, the talent experience and total well-being





Thank you!

John Bremen

[email protected]


Closing remarksJoris Wonders and Chantal Free, Willis Towers Watson



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