making total rewards worktowers watson …：使總報(bào)酬工作塔沃森…

1、Getting the most out of your People Strategies in 2011 Synopsis of the presentationsOur expertiseHelping organisations improve performance through effective people, risk and financial managementRisk and Financial ServicesInsurance ConsultingInvestment ServicesReinsurance BrokerageFinancial Modeling

2、SoftwareRisk ManagementTalent and RewardsExecutive CompensationTalent ManagementRewardsCommunication and ChangeEmployee SurveysGlobal Data ServicesBenefitsRetirementHealth and Group BenefitsMergers and Acquisitions: From target evaluation to integration implementation3Getting the most out of your Pe

3、ople Strategies in 2011Overview of People Issues in 2011 2010 Towers Watson. All rights reserved.Hiring and Attrition are backIndia is once again witnessing increase in Hiring NumbersMost companies are facing issues in hiring mainly at the middle management and supervisory level. Todays middle manag

4、ement challenge will become a leadership challenge in a few years from nowWith Growth back on the radar, so is Attrition Better growth, better pay and personal reasons are the top three reason cited by employees when leaving an organisation We believe that internal factors like inequity of compensat

5、ion or lack of differentiation are likely reasons that contribute to the pushRetaining top performers and keeping them engaged is the top HR challenge in IndiaSource: Towers Watson HR Pulse Survey 2010Towers Watsons View on Total Reward A framework that captures all aspects of the work experienceTOT

6、AL REWARDPayBenefitsLearning and DevelopmentWork EnvironmentBase salaryBonusesRecognitionAllowancesGeographical and shift allowancesCareer developmentLearning experiencesPerformance managementSuccession planningTrainingTalent mgt.CoachingLeadershipCultureInvolvementDiversityWork/life balanceInterest

7、ing meaningful workJob securityLong-term sickness benefitPensionHolidayStaff restaurantRelocation assistanceLife insuranceMedium Term Talent Management Challenges for India Inc.HR Service DeliveryEffective Talent AcquisitionProductivity and Cost Management Management of AttritionAvoiding the middle

8、management trapKey Medium Term Talent Management Challenges INTEGRATED HR PHILOSOPHY AND SYSTEMS 8Getting the most out of your People Strategies in 2011Are companies getting the most out of their Compensation and Benefits spends? 2010 Towers Watson. All rights reserved.GrowthAsia still driving globa

9、l growth in 2011:ConcernsRising currenciesCommodity prices/inflationAsset bubblesSource: EIU Country Briefing Report, October 20103.71.7-2.23.12.42.00.4-2.62.31.52.60.6-4.11.40.88.35.54.97.86.420072008200920102011WorldUSEuro AreaAP (excl. Japan)Now compared to pre-financial crisisOne year from now a

10、s compared to nowAsia PacificIn 2010/11, Companies Expect Retaining Key Talent To Get More Difficult, Especially In Asia-PacificMost pressing challenges for HR in Asia PacificSource: Towers Watson 2009 Asia Pacific benefits trends survey report2010 2011 Salary Increases: General Industry Source: 201

11、0 Towers Watson Compensation Planning Report, October 20102011 Salary Increase presented are based on projected/forecasted figures shared by participating companiesA total of 2,560 companies shared information for 2010 and 2,200 for 2011 General Industry figuresBenefits preferred by employees in Asi

12、a-PacificSource: Towers Watson HR Perspectives on Benefit Trends 2010% of responsesBenefits challenges in Asia-PacificIrrespective of how much employers spend, some 40% of employees still dont really value benefits% of responsesSource: Towers Watson HR Perspectives on Benefit Trends 2010Growing tren

13、d towards employee choiceMore than one third of companies have or are considering implementing choiceSource: Asia Pacific Employee Benefit Trends 2009 (Towers Watson)16Getting the most out of your People Strategies in 2011Developing a sustainable Reward and Talent Management model 2010 Towers Watson

14、. All rights reserved.About the TM&R Survey Global ParticipantsGlobal Talent Management and Rewards SurveyConducted in May through June 2010Captures the current landscape of rewards and talent managementRepresents 1,176 companies across 17 locationsEmployee Data from Towers Watsons Global Workforce

15、StudyConducted online in 22 markets around the world between November 2009 and January 2010 Includes over 22,000 full-time employees in mid-size to large organisationsGlobally, the recession forced companies out of business as usual mode and changed the employee mindsetTheme of RenewalLooking forwar

16、d, organisations must re-think the way they design and manage their reward and talent programsTheme of SecurityEmployees are looking for job security, stability and opportunities to earn higher levels of pay (which may be unavailable in current organisation)In India, the slowdown forced companies ou

17、t of irrational exuberance mode and changed the employee mindsetThe focus on cost control / management is here to stayPay, bonuses and training budgets are the programs organisations are most likely to change if economic or business conditions change substantially in either directionPay, Bonuses and

18、 Training Budgets are the programs organisations are most likely to change if economic or business conditions change substantially in either directionOver the next 12 months, which actions is your organisation most likely to take if it has: to cut costs?additional funds to spend on labor costs?Progr

19、amTop 3ProgramTop 3Reduce pay increases78%Increase salary increase budget69%Reduce budgets for training and development programs54%Hire more people54%Reduce or eliminate bonuses57%Increase bonus opportunities49%Lay off employees41%Increase budget for training and development programs55%Increase heal

20、th care premiums that employees pay18%Increase investment in better equipment for employees27%Reduce employee hours, e.g., furloughs, reduced workweek, etc.13%Increase bonus eligibility14%Reduce contribution to retirement programs8%Increase contributions to retirement programs7%Reduce number of days

21、 of paid time off or vacation6%Reduce health care premiums that employees pay4%Increase number of days of paid time off or vacation2%Economic uncertainty and company responses have affected drivers of attraction and retention Employers are having difficulty attracting and retaining top talent in gen

22、eralCritical Skill and Top Performers were reluctant to leave current employer due to uncertaintySeverity of difficulty varies across regions as economic recovery is unevenCritical skill, Top performing and High potential employees are categories where Indian companies are facing maximum difficulty

23、with retaining talent . Also, sustained economic growth means greater opportunities for talent and difficulties in attracting and retaining talent at all levelsAttraction Drivers in AsiaEmployers underestimate convenient work location and benefits as factors candidates consider in deciding whether t

24、o join a companyRetention Drivers in AsiaEmployers likewise do not share employees view on the availability of/better pension and better financial planning resources as retention factorsRetention drivers are also shifting, with increased emphasis on employee well-beingThere are large gaps between em

25、ployee and employer perceptions regarding the influence of security and flexibility on employee retentionEmployers underestimate the impact of pensions, job security and more flexible work arrangements on employees decision to leave their organisationIncreased compensationAvailability of/better pens

26、ionGreater job securityImproved work life balanceGreater career advancement opportunityMore flexible work hoursAllEmployee91%86%86%85%84%82%Employer88%30%43%66%87%27%Gap2%56%42%20%3%56%AsiaEmployee91%89%90%88%88%86%Employer94%28%47%61%90%27%Gap3%61%43%27%2%59%IndiaEmployee89%90%43%88%79%87%Employer9

27、1%21%90%51%91%42%Gap2%69%47%37%12%45%USAEmployee94%86%87%86%81%84%Employer83%37%48%70%83%37%Gap10%49%39%15%2%46%Percentages equal the percent of employees or employers responding to a moderate or great extent: How would receiving each of the following from a new employer influence your/your employee

28、s decision to leave your current organisation?Gaps are the difference between employee and employer percentages may not add up due to roundingWhat is an Employee Value Proposition (EVP)?Ultimately it comes down to the give and the getAn employee value proposition is the experience offered by an empl

29、oyer in exchange for the productivity and performance of an employee. Employee perspectiveEmployees connection with the EVP determines their level of discretionary effort in bringing the company mission, vision and values to life. Employer perspectiveA strategically designed EVP attracts, retains, e

30、ngages and motivates employees to drive business success. Elements of the EVP which are key, in IndiaQuestion: To what extent are each of the following, important elements of the way you view your companys EVP in India? Security / stability, Opportunity to develop skills/ abilities, Variety of jobs

31、/ work experiences and Opportunity to develop innovative products / services are key aspects of the EVP in IndiaElement of EVP Important to a great extent (% of employees)A secure and stable position51%A wide range of jobs and work experiences 50%Opportunity to rapidly develop skills and abilities 4

32、6%Opportunity to develop innovative products/services45%Opportunity to earn significantly higher levels of compensation45%Organisations with global consistency report higher level of talent and reward program effectivenessProvides a platform for getting the basics rightFOCUS ON THE BASICSThose eleme

33、nts of the deal that are attractive across employee segmentsCompetitive Base PayChallenging WorkCareer Advancement OpportunitiesConvenient Work LocationVacation or Paid Time OffSecurity - retirementFormalise and CommunicateEVPDEVELOP LEADERSHIP COMPETENCIESTo ensure they can manage in the new and ch

34、anging environment.DIFFERENTIATERewards based on employees performanceElements of T&R based on different employee segments DEVELOP GLOBAL CONSISTENCYAcross regions, levels and talent and reward programsHigh Gain Actions for Building a Sustainable ModelGetting the most out of your People Strategies i

35、n 2011Are you ready for Globalisation? 2010 Towers Watson. All rights reserved.Globalization StrategiesThe modifier and adapterThe collaboratorThe thought leaderDevelops strong capabilities of dealing with a developing marketDesigns products for low-income marketsInnovates in processes to improve ef

36、ficiency in developing locationsStandardization to minimize training costs and human errorProcesses adapted to deal with poor infrastructureTakes advantage of similar conditions in other emerging countries with similar or lower level of developmentPartners on the basis of late-moverLow-cost advantag

37、esBack-end work, no brand valueVery specializedStarted servicing needs of developed MNCs in IndiaDeveloped managerial skills, expertise and understanding of developed MNCs needs Now expanding to developed countries toTo service clients betterTo increase client baseBPO in IT, R&D and Legal ServicesTh

38、ese firms have acquired first mover advantages:Innovation and ownership of technologyAcquisition of key assetsHave built a global brand Globally distributed value chainThis type of Indian MNCs are not common, but some interesting examples can be found inRenewable energyBiotechnology/PharmaTo Support

39、 Business and Growth StrategyAcquire people or technologyExpand geographicallyGain market shareReduce costs: sales, marketing, inventoryGoals of Buying CompetitorsSecure raw materials/inputsImprove qualityReduce costs: R&D, production, inventoryAcquire hard-to-duplicate assetsRespond to deregulation

40、Enter higher-margin industry segmentGoals of Buying SuppliersBalance market risksExpand product portfoliosEnter entirely new businessesIntegrate product lineGoals of DiversificationOwn distribution networkFreeze out competitorsReduce costs: production, inventory, salesImprove identity/visibilityGoal

41、s of Buying CustomersPotential reasons for expanding intogeographic marketsEuropean UnionGain access to large capital, consumer and business marketsEstablish regional manufacturing or distribution centersAcquire unique assets or human capitalCEE and RussiaGain access to emerging consumer and busines

42、s marketsSecure natural resources and raw materialsEstablish low-cost export manufacturing operationsMexico andSouth AmericaGain access to emerging consumer and business marketsSecure natural resources and raw materialsEstablish low-cost regional and export manufacturing sitesJapan, China, SE Asia a

43、nd IndiaGain access to massive and varied consumer and emerging business marketsSecure natural resources and raw materialsEstablish low-cost regional and export manufacturing sitesAcquire unique assets or human capitalNorth AmericaGain access to large capital, consumer and business marketsGain acces

44、s to technology and R&DAcquire unique assets or human capitalGetting the most out of your People Strategies in 2011Making M&As Work 2010 Towers Watson. All rights reserved.Why do M&As fail traditionally?RankTop 10 Pitfalls in Achieving SynergiesNegativeImpactNote: Survey of Forbes 500 CFOs. Assessed

45、 on a scale of 1 to 7, where 7 is high.1Incompatible cultures5.603Unable to implement change5.345Did not anticipate foreseeable events5.147Acquirer paid too much5.009Need to spin off or liquidate too much4.052Inability to manage target5.394Synergy non-existent or overestimated5.226Clash of managemen

46、t styles/egos5.118Acquired firm too unhealthy4.5810Incompatible marketing systems4.01“ India everywhere ”: Over the last 10 years, US$62 billion of Indian capital has been ploughed into M+A deals around the world *UK Tata Steel buys Corus for $12 billion in 2006UK Samvardhana Motherson buys VisioCor

47、p for $38.3 million in 2009USA Essar Group buys Minnesota Steel for $1.65 billion in 2008Brazil Shree Renuka Sugars buys Equipav SA for $329 million in 2010Portugal Wipro buys Enabler for S52.3 million in 2006South Africa Apollo Tyres buys Dunlop Tyres for $62 million in 2006Germany Suzlon Energy bu

48、ys RE power for S1.7 billion in 2007Russia ONGC buys Imperial Energyfor S2.8 billion in 2009Japan Lupin buys Kyowa PharmaFor an undisclosed amount in 2008Malaysia Avantha Group buys Sabah Forest for $261 million in 2007Australia Samvardhana Motherson buys Empire Rubber for $5.2 million in 2007 * Sou

49、rce: October 2010 issue of Fortune Magazine ()Key M&A process steps for HRNote: All deals are different; this timeline represents typical sequence of events.ImplementationIntegration PlanningDue DiligenceManage deal price and riskSecure top teamManage the messagesPrioritize and manage activitiesPlan

50、Develop change management planDesign and implement staffing modelAlign Total RewardsMeasure synergiesDefine and implement HR service deliveryExecuteOngoingHR Professionals can contribute at each stage of the deal to assist inStage 1: Target EvaluationFinding compatible business ventures and partners

51、Stage 2: Due DiligenceEnsuring the deal is sound and establishing the value propositionStage 3: Integration PlanningDefining the blueprint for all aspects of the merged entitiesStage 4: ImplementationExecuting the merger integration plan for the new enterpriseHR Due Diligence key questionsWhat are t

52、he people assets we are acquiring?nProfile key managementnOrganization chartnSkill profile/development programsnDemographic characteristicsHow will the people fit together?nCultural barriersnIncompatible job definitionsnIncompatible reward structuresnIncompatible process and structurenDuplicate jobs

53、!Is the people cost reasonable?nBenchmark a few jobsnBenchmark staffing levels in a few functional areasnWhat is the root cause?nInadequate skills?nDemographics?nExpatriatesPotential redundancy/ Workforce flexibility?nGoodwill issues/moralenProcedure stepsnLegal barriersnUnion issuesnTemporary/contr

54、act workersAdverse balance sheet impacts?nChange of control triggersnPension, welfare liabilities understatednContracts with executives may contain future liabilitiesnBook accruals understated, e.g. vacation, sales commissionAdverse revenue impacts?nSales incentive designnLikely employee turnovernRe

55、tention plansnPending industrial disputesAdverse margin impacts?nUnderstatement of ongoing program costnSeverance paymentsnCommitments to future cost increasesnCollective agreement commitmentsnExpatriatesnRelocation expensesOther?nCompliancenIllegal paymentsnDiscriminationnAcquired rightsnPayroll &

56、HRISWhat are the people assets we are acquiring? Profile key management Organization chart Skill profile/development programs Demographic characteristicsHow will the people fit together? Cultural barriers Incompatible job definitions Incompatible reward structures Incompatible process and structure

57、Duplicate jobs!Is the people cost reasonable? Benchmark a few jobs Benchmark staffing levels in a few functional areas What is the root cause? Inadequate skills? Demographics? ExpatriatesPotential redundancy/ Workforce flexibility? Goodwill issues/morale Procedure steps Legal barriers Union issues T

58、emporary/contract workersAdverse balance sheet impacts? Change of control triggers Pension, welfare liabilities understated Contracts with executives may contain future liabilities Book accruals understated, e.g. vacation, sales commissionAdverse revenue impacts? Sales incentive design Likely employ

59、ee turnover Retention plans Pending industrial disputesAdverse margin impacts? Understatement of ongoing program cost Severance payments Commitments to future cost increases Collective agreement commitments Expatriates Relocation expensesOther? Compliance Illegal payments Discrimination Acquired rig

60、hts Payroll & HRISWhy is leadership critical to success?Set priorities right and create business momentumProvide employees with commitment, engagement, confidence and comfortTo inspire a sense of purpose, coherence, community and trustTo be a comforting anchor in a turbulent sea of changeResearch ha