What’s new in Reward.. Sally Knill September 2012

Agenda Introduction Introduction 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 Tactical Strategic vs Tactical What is reward not… What is reward not… Ask as we go along Ask as we go along

Introduction Mixture of industries Mixture of industries Retail, banking, IT, FMCG Retail, banking, IT, FMCG 20 years of reward 20 years of reward With some generalist too With some generalist too UK, Europe, Asia, America UK, Europe, Asia, America Mature and emerging markets Mature and emerging markets Dot com boom and Y2K… Dot com boom and Y2K…

What is reward… Principles are the same regardless of mature or maturing markets Principles are the same regardless of mature or maturing markets What employees talk about at the coffee machines What employees talk about at the coffee machines Salary, Allowances, Pensions, Medical, other benefits Salary, Allowances, Pensions, Medical, other benefits Anything else that no-one else wants! Anything else that no-one else wants! International mobility, job evaluation, share plans, sales incentives etc…. International mobility, job evaluation, share plans, sales incentives etc….

What’s new in reward… Tax changes Tax changes 50%/45% implemented 50%/45% implemented Salary sacrifices Salary sacrifices Auto-enrolment Auto-enrolment Massive commercial impact for businesses too Massive commercial impact for businesses too Executive remuneration Executive remuneration Transparency Transparency

What’s (kind of) not new… Limited salary budgets and the impact on employee engagement Limited salary budgets and the impact on employee engagement Strong link needed with Communications Strong link needed with Communications Senior management leadership Senior management leadership Link to performance management Link to performance management Force distribution or not??? Force distribution or not???

Strategic versus Tactical Reward strategy must align to the commercial / business objectives Reward strategy must align to the commercial / business objectives No point having a sales plan that targets the wrong products No point having a sales plan that targets the wrong products Must support high performance Must support high performance The tactical stuff has to happen without fuss and effort The tactical stuff has to happen without fuss and effort Difficult balance… Difficult balance…

What is reward not… Nothing but spreadsheets Nothing but spreadsheets An exact science An exact science Although line management think that there must be formulae to work out salaries etc. Although line management think that there must be formulae to work out salaries etc. Magic bullets Magic bullets Pay is often not the main issue Pay is often not the main issue But it’s fun!! But it’s fun!!

Any questions? Thank you for your time Thank you for your time