What’s new in Reward..What’s new in Reward..

Sally KnillSally KnillSeptember 2012September 2012

AgendaAgenda

IntroductionIntroduction What is reward?What is reward? What’s old in reward…What’s old in reward… What’s new in reward…What’s new in reward… What’s (kind of) not new…What’s (kind of) not new… Strategic vs TacticalStrategic vs Tactical What is reward not…What is reward not…

Ask as we go alongAsk as we go along

IntroductionIntroduction

Mixture of industriesMixture of industries Retail, banking, IT, FMCGRetail, banking, IT, FMCG

20 years of reward20 years of reward With some generalist tooWith some generalist too

UK, Europe, Asia, AmericaUK, Europe, Asia, America Mature and emerging marketsMature and emerging markets Dot com boom and Y2K…Dot com boom and Y2K…

What is reward…What is reward…

Principles are the same regardless Principles are the same regardless of mature or maturing marketsof mature or maturing markets

What employees talk about at the What employees talk about at the coffee machinescoffee machines

Salary, Allowances, Pensions, Salary, Allowances, Pensions, Medical, other benefitsMedical, other benefits

Anything else that no-one else Anything else that no-one else wants!wants! International mobility, job evaluation, International mobility, job evaluation,

share plans, sales incentives etc….share plans, sales incentives etc….

What’s new in reward…What’s new in reward…

Tax changesTax changes 50%/45% implemented50%/45% implemented Salary sacrificesSalary sacrifices

Auto-enrolmentAuto-enrolment Massive commercial impact for Massive commercial impact for

businesses toobusinesses too Executive remunerationExecutive remuneration

TransparencyTransparency

What’s (kind of) not new…What’s (kind of) not new…

Limited salary budgets and the Limited salary budgets and the impact on employee impact on employee engagementengagement Strong link needed with Strong link needed with

CommunicationsCommunications Senior management leadershipSenior management leadership

Link to performance Link to performance managementmanagement Force distribution or not???Force distribution or not???

Strategic versus TacticalStrategic versus Tactical

Reward strategy must align to Reward strategy must align to the commercial / business the commercial / business objectivesobjectives No point having a sales plan that No point having a sales plan that

targets the wrong productstargets the wrong products Must support high performanceMust support high performance

The tactical stuff has to happen The tactical stuff has to happen without fuss and effortwithout fuss and effort

Difficult balance…Difficult balance…

What is reward not…What is reward not…

Nothing but spreadsheetsNothing but spreadsheets An exact scienceAn exact science

Although line management think Although line management think that there must be formulae to that there must be formulae to work out salaries etc.work out salaries etc.

Magic bulletsMagic bullets Pay is often not the main issuePay is often not the main issue

But it’s fun!!But it’s fun!!

Any questions?Any questions?

Thank you for your timeThank you for your time