1. Extending our reach and relevance - Membership Sue Upton Branch Chairs and Council Representatives meeting 9 October 2013 1

2. Strategic priorities – 2013 and beyond Extending impact and voice Research and policy focus, Big Themes, strategic partnerships, positioning on the strategic HR agendas, strengthening relationship with the top of the profession Broadening our reach, relevance and value Working with organisations (B2B), support for SMEs, better focus on L&D and consultants, Centres and students Developing progression paths, career development and means of recognition Extending the Profession Map, CPD and learning support, certification, endorsements, supporting career development, job and mentoring support Developing the membership offer Segmentation to reflect different groups, seniority, access to assets, international membership offer etc Strengthening branch networks and regions Establishing regions to better support branches, members, centres, engage with regional agendas Clarifying and extending our international presence Focus on key regional markets, international businesses, evolving international standards, strategic relationships 2

3. Membership vision FROMTO Flat growthYear on year growth One size fits allDifferentiated propositions and pricing. Qualifications plus upgrade and EA as main routes to membership More flexible and accessible routes to membership that recognise changing HR careers and specialisms High lapse rates for key groups of members e.g. students, international Delivery of relevant and valued propositions that drive retention Members ‘stuck’ in wrong gradesFit for purpose structure and progression routes Student relationship primarily with centre (300 plus centres) CIPD closer to students and channel partners CPD policy not perceived to ‘have legs’Clearly articulated policy with clear signposting to development interventions Employers and other stakeholders confused by the various accreditations (membership and qualifications) we offer and how they can be accessed Clearer market and customer understanding and relevance. To create a fit for purpose membership model (structure, routes, proposition, fees) that drives recruitment, progression and retention 3

4. eee Chartered Companion Chartered CCIPD Chartered Fellow Chartered FCIPD Chartered Member Chartered MCIPD Associate Member * Assoc CIPD Graduate (Ending June 2014) Student (on pathway to Prof Membership) Affiliate (Subscriber) Academic Fellow Academic FCIPD Academic Fellow Academic FCIPD Academic Member Academic MCIPD Academic Member Academic MCIPD Academic Associate Academic Assoc CIPD Academic Associate Academic Assoc CIPD By invite only Professional membership *From 1 January, Associate membership will automatically be awarded to members who have successfully completed a CIPD approved or awarded certificate or diploma qualification or undertaken an equivalent assessment. 4 Membership structure and routes

5. Networking Career Development Personal Development Access to information Professional status and recognition CPD Membership proposition and fees CPD People Management Practical tools Branches Profession Map Professional recognition Communities Research CPD 5

6. Segmentation by grade to reflect the fact that needs vary at different stages in career Increase accessibility and flexibility o joining fees o fixed renewal dates o price Strengthen student proposition – CIPD as ‘career partner’ Invest in brand building in terms of the value of the ‘badge’, particularly at Chartered level No overall loss in membership revenue – any gains to be invested in improved member service 6 Design principles

7. StudentAssociate Chartered Member Chartered Fellow CIPD £138 Chartered Management Institute £65£125£150£175 Chartered Institute of Marketing £124£146£169£220 Chartered Institute of Purchasing & Supply £110 £155£188 Chartered Institute of Management Accountants £103-£235£247 £259 7 Some comparators

8. Qualitative proposition testing Chartered Members and Fellows 8 focus groups conducted by independent researcher to explore: o how the status and value of Chartered Fellow and Chartered Member might be enhanced from the point of view of the members themselves o willingness to pay a differential membership fee to reflect status, and to give something back to those at the start of their career Student and centres Interviews with centres prior to centres conference Follow up focus groups and sessions at conference Benchmarking with other professional bodies Student research Chartered Fellows from a mix of backgrounds2 groups Chartered Fellows working in private sector roles1 group Chartered Fellows working in public sector roles1 group Chartered Fellows working as independent consultants1 group Chartered Members from a mix of backgrounds3 groups 8

9. Key findings The critical value associated with Chartered Fellow and Chartered Member status lies in what the badge says about the individual The range of resources provided by CIPD meet many day to day needs but there is scope for improvement CIPD seen to have upped our game in recent years and many members see signs of a more outward-looking and professional body Most Fellows and Members over-estimate how much they currently pay for their membership and believe we already operate a differentiated fee structure When viewed in the context of fees charged by other bodies, Fellows and Members feel the current fee is relatively modest and represents good value for money 9

10. Key findings – continued Most participants would accept a small rise in fees if this means students would be charged less – with or without any service enhancements Retired members and the unemployed/ not currently earning were also identified as groups we should do more for Willingness to pay more tends to reflect the individual's circumstances based on sector, salary and whether self-funding or not When prompted for thoughts on service enhancements, participants found it hard to come up with new ideas but would like o better and cheaper access to services already in place (and more access outside London/SE) o well targeted networking opportunities with a specific focus on issues of relevance to senior practitioners o there is an appetite for more involvement in professional activities e.g. coaching/mentoring and to contribute to our work in the media – Chartered Fellows are an untapped resource Acceptable range for Members and Fellows is in the range of £150-220 10

11. 11 Proposition proposed Tailored conferences/events Targeted only at senior level HR people Arranged around themes/topic areas of relevance to seniors Pay to attend Webinars/video casting Online events targeted at seniors Arranged around themes/topic areas of relevance to seniors Online access to content of sessions from events such as the Annual Conference Directory of Chartered Members/Fellows Validation/stamp of approval from professional body for individual members Searchable online directory for employers, clients etc Option to limit listings to those who have demonstrated up to date CPD records Quarterly journal with: Thought leadership focus Strategic outlook International outlook Modelled on the style of publications such as Harvard Business Review Networking events Networking events for seniors Online networking opportunities with access restricted to seniors Partnerships with other professions enabling networking and conversations, eg CFO, COO, CEO

12. Key findings –centres and students © CIPD 2012 6-8 weeks for certification is too long Renewal period doesn’t work No membership outcome makes it hard to sell Provide CIPD accredited certificate on completion You’re not relevant to international students Don’t understand upgrading or why it’s important Resources good but difficult to find No immediate value, no urgency to join You’re too expensive Clarify the relationship between the qualification and membership We don’t know who you are and what you do Improve the attractiveness of HR as a profession Make more effort to engage with us 12

13. Proposed student journey AttractEngageDevelop Position HR as an attractive and rewarding career option. Promote CIPD qualifications. Support CIPD centres to attract students on to their programmes. Provide students with study support during their programme. Contribute to their study experience by providing an engaging community they can interact and grow in. Provide ongoing support towards their development and enable them to progress in their careers. Provide clear guidance and support to helping them achieve professional membership. Grow our pipeline Grow our membership Retain our members 13

14. Likely proposal for Council approval in May 2014 Flat joining fees between £40 - £60 Differentiated fee structure with a minimum fee of £99 for students and maximum fee of £199 for Chartered Fellows Explore ways to enhance in particular the student and chartered membership propositions Introduce anniversary of joining renewal from late 2014/early 2015 Continue to support members in difficult financial circumstances Will have a dependency on changes to the Charter (AGM Jan 2014) 14

15. Questions? © CIPD 2012

16. Breakout discussions What is your reaction to the proposed changes to the fees model? What are your thoughts on how we strengthen and develop the proposition for o Chartered Members and Fellows o Students?

17. Proposition proposed Tailored conferences/events Targeted only at senior level HR people Arranged around themes/topic areas of relevance to seniors Pay to attend Webinars/video casting Online events targeted at seniors Arranged around themes/topic areas of relevance to seniors Online access to content of sessions from events such as the Annual Conference Directory of Chartered Members/Fellows Validation/stamp of approval from professional body for individual members Searchable online directory for employers, clients etc Option to limit listings to those who have demonstrated up to date CPD records Quarterly journal with: Thought leadership focus Strategic outlook International outlook Modelled on the style of publications such as Harvard Business Review Networking events Networking events for seniors Online networking opportunities with access restricted to seniors Partnerships with other professions enabling networking and conversations, eg CFO, COO, CEO

18. Reactions to the proposition Competitors already doing this… Popular with all types of member Quick wins? - Podcasts from ACE - Webinars Too complex Unclear what the value would be Directory Success will depend on quality Highest potential to add status? Most appealing Most likely to add value Hardest to “get right” Quarterly journal Ideally, choice of format (paper and/or app) And choice over PM as well - Tailored events - Networking Combine into one event with both content and networking Pricing is a real concern LEAST VALUE GREATEST VALUE

19. Proposed student journey AttractEngageDevelop Position HR as an attractive and rewarding career option. Promote CIPD qualifications. Support CIPD centres to attract students on to their programmes. Provide students with study support during their programme. Contribute to their study experience by providing an engaging community they can interact and grow in. Provide ongoing support towards their development and enable them to progress in their careers. Provide clear guidance and support to helping them achieve professional membership. Grow our pipeline Grow our membership Retain our members

20. Be part of something big © CIPD 2012 Access to 135,000 like minded professionals across 120 countries Practitioner talks Social Media (LinkedIn) PM jobs board Continuing Professional Development CIPD Profession Map Professional recognition Online resources Webinars Practical tools Professional Development Global Network Link to Employers Study Support Accelerate your learning and career prospects Meeting the right people at the right time Find what you need when you need it Every step is clear

21. © CIPD 2012 Business ready skills – office politics, ethics, returning to work etc Mentoring scheme – local, international and cultural Engage Benefits pack (Tangible) Dedicated site with integrated online content Practical tools and exercises integrated with modules Events including competitions for individuals & intercentre Interactive learning community CPD pack (Intangible) Career start to end initiative CPD support and guidance Map – blueprint for practitioners Professional membership Fee Lower feesRenewal periodPayment plans/options Process (Separate mandate) RegistrationCertification Membership outcome Proposition proposed