1. Total Rewards Cost Project Update Presentation to C&B Managers
C&B Operations F&C GAR / Cost Management Globe D&B HR / Business Excellence
June 2013
Corporate HR | C&B Operations
7 December 2018

2. The New Reality … and make wise choices
A fierce, volatile and competitive operating environment…
Full of opportunities
….We need to manage contradictions
… and make wise choices
Sustainability
Compliance
Our ambition
The leading Nutrition, Health and Wellness Company
A reference for financial performance
Trusted by all stakeholders
Corporate HR | C&B Operations

3. Fast changing global Trends...
The New Reality – Total Rewards, COST EFFICIENCY and impact on employment
Fast changing global Trends...
.....Evolving and constant changes in local Segmentation
If you are not investing, designing and communicating around this local understanding of Rewards, you are spending with limited impact
Human Resources | C&B Operations | Jérôme Dano
7 December December 2018

4. Globally coherent…locally relevant
Building a competitive advantage to attract & retain local talents and motivate them for performance
Rewards and Recognition
become one dimension
of People Plans that is both cost effective and customer valued
Total approach: Leverage & integrate HR Initiatives
A competitive advantage built on Employee Insight, Benchmark with Competition and Business situation
A differentiated approach by performance
Reward and recognition become one dimension of HR Strategy
Total approach: Leverage & integrate HR Initiatives
A competitive advantage built on Employee Insight, Benchmark with Competition and Business situation
A differentiated approach by performance and employee group
A paradigm shift in Rewards communication
Human Resources | Sub-Community | Author’s name
7 December December 2018

5. When damaged or undermined, there’s no platform.
Nestlé Total Rewards Policy – Vital part of the Growth engine to attract, retain and engage people in the Group
Business drivers
Competitive context
Local drivers of attraction, retention and engagement
Nestlé and I
Segmentation (significant differences in employee groups)
Quality of leadership perceived as a critical Reward.
Pay for Performance
....
‘Hygiene Factors’
Fairness & Equity
When damaged or undermined, there’s no platform.
Step 1
UNDERSTANDDEEPLY
ATTRACT
RETAIN
ENGAGE
ATTRACT
RETAIN
ENGAGE
Step 2
INVEST
EFFECTIVELY
Step 3
COMMUNICATE
With
MASTERY
More to Life…
We Make Nestle…
Local Message
Segmentation
Mediums/ Channels
60% of Company MOGE!
Human Resources | C&B Operations | Jérôme Dano
7 December December 2018

6. Hay Group Typical breakdown of Company Personnel Costs
Other = travel & accommodation, redundancy, vacation days payouts, etc.

7. Potential Benefits of Good Knowledge of Employee Costs Components
Increased reward and employee costs effectiveness, should inform spending where impact is highest
Corporate HR | C&B Operations

8. Total Rewards for Competitive Advantage
Improving Employee/rewards Costs data reporting & management has been flagged by the markets as a priority in the C&B roadmap
Support the Business to win
Total Rewards programs to attract & retain Talent
Total Rewards Cost
Engage employees for Performance
Strong Communication platforms to link Performance and Total Rewards
Recognition Programs
Total Rewards for Competitive Advantage
Enhance C&B Capabilities across C&B Community, HRBPs & LM
C&B Maturity
C&B Talent & Capability
Network consolidation
Promote Excellence in C&B
Nestlé Total Rewards Solutions
Compliance and NCE C&B KPIs
External Benchmark & Best practices
Corporate HR | C&B Operations

9. Improvement opportunities in current reporting on Total Rewards/Employee costs
*Multiple sources
*Low level of common understanding of the data sources (GL Accounts, Wage Types, Payroll, non Payroll, Legacy)
Data Sources
*No total employee costs standardised reports in SAP
*Manual processes/data integration outside SAP *Reports not often comprehensive on the costs
The Reports
Michael
Roles: Lack of clarity, overlap and double work (F&C, NBS, HRBP and C&B) 9
Corporate HR | C&B Operations

10. What we want to achieve :
Business Reporting & Analysis for decision making
KPIs on employee costs & Business performance
Clear Roles & Responsibilities amongst stakeholders
C&B knowledge of the Business & HR closer collaboration on cost management
Total Rewards Costs Planning (tbc) 10
Corporate HR | C&B Operations

11. How the project will benefit Nestlé
Common language within the Group and Markets thanks to the Reward cost classification
Real time access to the comprehensive employee costs data, and in a simplified way
Common tool to ensure data availability for analysis simulation and reporting
Corporate HR | C&B Operations

12. BW Tool Development Components, Benefits & Demo
Corporate HR | C&B Operations

13. BW Tool Development components
Configuration view
Wage-Types & Cost Elements
Configuration view
Cost Centers & Business Units
Simplified version
Employee
Cost Report
(non-confidential)
FI/CO & Non-GLOBE PY
Upload Tool
Main Employee
Cost Report
Corporate HR | C&B Operations

14. Profile needed in the Markets’ Pilot team
A HR profile with knowledge of C&B, payroll and authorizations access to sensitive salary data
A F&C profile with knowledge of Cost Centre accounting and Reporting
Corporate HR | C&B Operations

15. Overview of the project challenge
Benefits to
Employees
Payroll
Salary
Allowances
Bonus
Overtime …
Schooling tuition
support
housing
cars…
Non-
Payroll
Reward costs
to Nestlé
Challenge is to get common definitions and bring the non payroll costs down to the level of the individuals
Corporate HR | C&B Operations

16. Complete mappings of local market data for the Project Team:
Required inputs from markets to pilot with the Tool (on configuration of payroll costs)
Complete mappings of local market data for the Project Team:
Template mapping Employee Costs elements to Wage Types
Template mapping Costs Centers to org.units & Business Units
Corporate HR | C&B Operations

17. What is expected from the pilots on non payroll costs:
Review and validation of reward scope and classification (of the non payroll costs)
Establish guidance for assignment of Non-payroll costs
Feed-back and testing of the tool
Recommendation on the underlying operational process
Corporate HR | C&B Operations

18. Total Rewards Costs Project Phases – Full Cycle
Tasks
2012
2013
2014
2015
PHASE 1 - Standard Reporting
(a) Agree Standards for Reports
(b) Pilot with Market(s) / Scale up & roll out
PHASE 2 – Total Rewards / Personnel Costs KPIs:
(a) Agree the indicators, analysis & frequency of reporting, reporting tool, test with Pilots
(b) Roll out
PHASE 3 – Planning tool (tbc):
(a) Explore & agree planning tool
(b) Develop & implement
PHASE 4 - Clear Roles & Responsibilities definition on use of BW Tool (C&B, HRBP, BUC & GNBS)
PHASE 5 – Training for C&B, HRBP & BUC, NBS 18

19. Discussions / Q&A
Corporate HR | C&B Operations

20. Thank you
Corporate HR | C&B Operations