1.
LEADING THROUGH AND BEYOND COVID-19 WEBINAR SERIES
EMPLOYING
AGILE REWARD
STRATEGIES
FOR A
VOLATILE
WORLD
Tuesday, March 24, 2020

2.
2
Agenda SPEAKERS:
Introduction
Polling questions
Insights from experts
Where to find out more
1.
2.
3.
4.
DON
LOWMAN
Global Leader,
Rewards & Benefits
AMANDA
WETHINGTON
Workforce Rewards
Leader
TODD
MCGOVERN
Executive Pay
Leader
JOE
DIMISA
Salesforce
Effectiveness
Leader
MARK
QUINN
EMEA Rewards
& Benefits
Leader

3.
1. We have not yet experienced a significant negative impact on our results.
2. We have experienced some impact but too early to quantify how much.
3. We have experienced a modest impact (20% or less reduction of near-term revenues)
4. We have experienced a significant impact (greater than 20% reduction of near-term
revenues)
5. The near-term impact has been positive for our revenues.
POLLING QUESTION #1
To what extent has your company felt a negative economic
impact of COVID-19 so far?
(select only one)

4.
Principles
© 2019 Korn Ferry. All rights reserved 4
Be balanced
when assessing
labor cost
reduction
alternatives.
Ensure your
immediate
priority is
employee well-
being.
1
4
Leaders lead
by example.
Remember
this is
temporary and
prepare for a
rebound.
2
5
Tailor actions to fit
your organization;
learn from others,
but “best practice”
is what is best for
you.
Be direct with
employees
and treat them
like adults.
3
6

5.
1. Too soon to tell/we are still deliberating
2. No changes expected as a result of COVID-19
3. Reduction in overtime pay
4. Base salary freeze
5. Base salary reductions
6. Short term incentives / bonuses reduction, deferral or delays
7. Reduction in benefits and perquisites
8. Increase in overtime pay
9. Increase in base salaries
10. One-time bonuses
POLLING QUESTION #2
Which actions have you taken, or are you contemplating, to
manage your workforce rewards−excluding executives?
(select all that apply)

6.
Wage and benefit continuity
© 2019 Korn Ferry. All rights reserved 6
▪ No sick-time for 70% of US
workers.
▪ Staffing and absenteeism.
▪ Supply chain disruptions.
▪ Gig economy pay arrangements.
▪ Communication and decision-
making.
• Virtual working arrangements
now common.
• Catastrophe pay – paid
time when not working.
• Some sectors hiring and
offering higher wages.
▪ Supplemental payments
increasing.
▪ Benefit continuation
arrangements.
WHAT IS CHALLENGING WHAT IS HAPPENING

7.
Reward management − more globally
7
MANUFACTURING SERVICE FINANCIAL SERVICES HEALTHCARE
▪ Leading from the top
on pay reductions.
▪ Engaging early in
negotiations with
unions.
▪ Benefit Holidays.
▪ Keeping people safe.
▪ Temporary layoffs
with state support.
▪ Mass staffing increase
e.g., logistics / food
retail.
▪ Enabling key workers
– “blue team / red
team.”
▪ Salary increase/bonus
payment deferral.
▪ Mid-term mental
health support.
▪ Supporting the front line
in hospitals and primary
care.
▪ Pulling together across
public and private sectors.
▪ Focusing on the
emergency not business.
© 2020 Korn Ferry. All rights reserved

8.
01
Make needed changes to
support labor continuity
and business realities.
02
Develop multi-pronged
approach.
03
Assess impact of cost
management opportunity
with employee relations
risk.
04
Implement and
communicate with care
and empathy.
A framework to manage employment costs during uncertainty
© 2020 Korn Ferry. All rights reserved 8

9.
The early impact on Executive Compensation
© 2020 Korn Ferry. All rights reserved 9
Company/industry economic impact
Low High
Employee
impact
Low
Monitor
(tech, professional services)
Long-term actions
(oil & gas)
High
Temporary action
(financial services, retail)
Immediate course-correct
(airlines, hospitals)

10.
1. Too soon to tell/we are still deliberating
2. No changes expected as a result of COVID-19
3. Base salary freeze
4. Base salary reductions
5. Short term incentives / bonuses reduction, deferral or delays
6. Long term incentives reduction, deferral or delays
7. Revisions to incentive performance targets
8. Reduction in benefits and perquisites
POLLING QUESTION #3
Which actions have you taken, or are you contemplating, to
manage executive pay?
(select all that apply)

11.
© 2020 Korn Ferry. All rights reserved 11
Moving forward in Executive Compensation
Ride Out the Storm
PLANS IN
PLACE FOR
2020
MONITOR PLAN
RESULTS
PLANS STILL
TO IMPLEMENT
FOR 2020
PROACTIVE
REMUNERATION
COMMITTEE

12.
1. Too soon to tell/we are still deliberating
2. No changes expected as a result of COVID-19
3. Base salary freeze
4. Base salary reductions
5. Reduction in commissions or bonuses
6. Modifications to sales quotas/ performance targets
7. Reduction in benefits and perquisites
8. Increase in base pay
9. Increase in commission/incentive opportunities
POLLING QUESTION #4
Which actions have you taken or are you contemplating
taking to manage salesforce rewards?
(select all that apply)

13.
Sales compensation - actions in times of crisis
© 2019 Korn Ferry. All rights reserved 13
Set up an incentive
compensation relief committee
Identify affected sales roles or
channels
Review policies and methods
▪ Manage decisions and review
cases.
▪ Building business cases for
expenditure & remediation.
▪ Include: HR, Op, Sales & Finance.
▪ Requires “corporate blessing” and
leadership support.
▪ Establish “triggers” to identify in
need e.g.:
− 20% - 25% decline in sales;
− 15% - 20% negative incentive
impact.
▪ May be whole sales team.
▪ Policies/methods best suited for
you.
▪ Have a defined timeline and clear
performance expectations.
▪ Focus temporary adjustments on
employees in good standing.
▪ Payback terms and time
commitments for voluntary leavers
down the road.

14.
Sales compensation - actions in times of crisis
© 2020 Korn Ferry. All rights reserved 14
Increase ramp periods for new sales
reps.
Redefine acceptable performance
levels.
Provide non-recoverable draws
(guaranteed earnings) for
a predetermined time.
Lower threshold performance levels
on primary sales compensation
measures.
Provide special incentives and spot
awards for continued business
development efforts.
Shift sales rep focus to retention,
usage and consumption on sold
products and services.
Increase accelerated payment
levels.
Move from billed/collected revenue
to new contract/new logo.
Shift incentive measures to
customer / activity-based measures.
Lower target excellence levels for
top performers.
Remove performance linkages on
multiple measures.
Review measurement and payout
periods to align with current
environment.
Provide ‘stay bonus’ if creditable
threat of performers leaving.
Lower threshold performance levels
on primary measures.
Increase accelerated payment
levels.
Introduce special incentives and
spot awards for continued business
development efforts.
Lower target excellence levels for
top performers.

15.
Questions?
© 2019 Korn Ferry. All rights reserved 15
Use the Q&A feature to
submit your questions now.

16.
© 2020 Korn Ferry. All rights reserved 16
This is
temporary.
Leaders should
lead by
example.
Be balanced
in thinking about
now and the future.
Employee
well-being
is paramount.
Remember:

17.
More webinars in the series
© 2020 Korn Ferry. All rights reserved 17
All sessions are being recorded and on-demand
viewing links, as well as registration links for upcoming
webinars, can be found on the kornferry.com
coronavirus insights page.
On-demand Leading in a time of crisis
On-demand Social distancing without revenue disruption
On-demand Keeping your people engaged and productive through the crisis
On-demand Protecting your company’s economic health
Today Employing agile reward strategies for a volatile world
Upcoming:
Wednesday, March 25 Crisis-proofing your talent processes
Thursday, March 26 Creating effective learning experiences in a virtual environment
Now added:
Friday, March 27 Cultivating personal resilience amid volatility

18.
For further information
© 2020 Korn Ferry. All rights reserved 18
Get our latest thinking on KornFerry.com
www.kornferry.com/challenges/coronavirus
Use this QR code or click on the link in the chat box
to visit our coronavirus insights page and keep up to date with
our latest thinking on how you can lead
through and beyond COVID-19.

19.
Thank You!