Total Rewards 'State of the Union': Top Trends, Challenges and Recommendations for the Coming Year

#WFwebinar

Speakers: Alison French, CCP, GRP
Market Segment Leader, Compensation, IBM
Deb Nielsen, CCP, GRP
Director of Compensation Research, IBM
Rena Rasch, Ph.D.
Research Manager, IBM
Moderator: Ladan Nikravan
Senior Editor, Workforce magazine
Total
Rewards
'State
of
the
Union':
Top
Trends,

Challenges
and
Recommenda;ons
for
the
Coming
Year

#WFwebinar

Tools
You
Can
Use

Audio
Control

–  A
dial
in
number
will
not
be
provided.

–  Adjust
the
volume
by
sliding
the
indicator

in
the
Media
Player
box
to
the
le<.

–  Also
check
your
computer’s
volume
for

external
speakers
or
headsets.

#WFwebinar

Tools
You
Can
Use

Ques/on
&
Answer

–  Type
in
your
quesBon
in
the
“Q&A”
box

to
the
le<.

–  These
queries
are
visible
by
the
presenter

ONLY.

–  Type
your
quesBon
in
the
space
at
the

boKom.

–  Click
“Send.”

#WFwebinar

TOOLS YOU CAN USE
Tweet
§  Click on “Post” in the
Twitter widget.
#WFwebinar
@workforcenews

#WFwebinar
Speaker Bios
TOOLS YOU CAN USE
Resources
Media Player
Q&A
Slides
Twitter
Help
Post Event
Survey
Share This

#WFwebinar

FREQUENTLY ASKED QUESTIONS
1. May I receive a copy of the
slides?
YES! Click on the resource list
located on the top left portion of
your screen.
2. May I review the webinar
recording at a later date?
YES! You may log in again using
today’s link to review the
presentation on-demand.

#WFwebinar

Ladan Nikravan
Senior Editor
Workforce magazine
Total
Rewards
'State
of
the
Union':
Top
Trends,

Challenges
and
Recommenda;ons
for
the
Coming
Year

#WFwebinar
Alison French, CCP, GRP
Market Segment Leader, Compensation
IBM
Total
Rewards
'State
of
the
Union':
Top
Trends,

Challenges
and
Recommenda;ons
for
the
Coming
Year

Deb Nielsen, CCP, GRP
Director of Compensation Research
IBM
Rena Rasch, Ph.D.
Research Manager
IBM

© 2013 IBM Corporation
IBM Smarter Workforce
Agenda
•  Macro forces - The economy and legislative climate
•  Trends and Forecasts - What are reward professionals doing this
year?
•  People Matters - What are employees and managers thinking about?
•  What does all this mean for 2014?
9

Top areas of concern
Source: Kenexa Compensation Outlook Survey, 2014
10
CONCERNS THAT MAY IMPACT COMPENSATION AND HIRING
53%
39%
38%
16%
10%
7%
43%
55%
57%
72%
76%
73%
4%
5%
5%
12%
13%
20%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Scarcity of talent
Regulatory changes
Broader economic conditions
Social networking
Unemployment rates
Outsourcing/Offshoring
More concerned
No change
Less concerned

Big news…
Source: Kenexa National Salary Budget Survey, 2013
11

Increase budgets in the U.S. have bottomed out in 2009. Though the rebound is yielding
increase, salary budgets are still below the pre-recession levels
“For the first time since 1980, the U.S. rate of inflation is higher
than the average total salary budget increase”
WorldatWork – August 2011
More on increase budgets
2008 2009 2010 2011 2012 2013 2014
Kenexa Compensation 3.0% 3.0% 3.0% 3.0%
IPAS 3.9% 1.1% 2.5% 3.2% 3.2% 3.0% 3.0%
Buck 2.9% 2.9% 2.7% 2.8% 3.0% 3.0%
Conference Board - - 2.5% 2.5% 3.0% 3.0% 3.0%
Mercer - - 2.7% 2.9% 2.9% 2.9% 2.9%
Towers Watson 3.4% 1.7% 2.8% 2.7% 2.8% 2.8% 2.9%
WorldatWork 3.8% 1.9% 2.8% 2.9% 3.0% 3.0% 3.0%
12

Certain HOT Jobs continue to outpace the market,
exceeding the overall market average of 9% in the 5 years
between 2007 and 2012
Hot jobs
Job Title Change
Long Term Care Executive 27.1%
Certified Occupational Therapist Asst 25.7%
Hardware Engineer III 20.3%
Chemical Engineer III 19.4%
Staff Nurse - Surgical First Assistant 17.4%
Nurse Practitioner 17.2%
Certified Nursing Assistant 16.4%
Network Administrator 15.1%
Software Engineer III 14.7%
Source: CompAnalyst benchmark database
13

Job Title Change
Accounts Receivable Manager 2.9%
Administrative Services Supervisor 1.5%
Communications Representative III 2.1%
Facilities Manager 2.3%
Financial Analyst II 4.7%
Mainframe Programmer II 2.9%
PC Maintenance Technician II -6.5%
Others jobs aren’t so lucky, significantly lagging
the 9% average over the last 5 years
Not-so-hot jobs
Source: CompAnalyst benchmark database
14

15
Job openings and unemployment
Pay for Performance: A Clear Signal for Retention and Engagement

Attrition

Economic environment concerns
§  Are we emerging from the
economic down turn?
§  What kind of turnover
might we face?
§  Will we be able to retain top
performers?
17

Department Of Labor budget
§  Hundreds of new enforcement staff have been added to the DOL
§  2014 DOL budget
–  $12.1 Billion versus 2013 $ 12.0 Billion
–  Nearly $14 million to combat the misclassification of workers as
independent contractors
–  An additional $3.4 million for the Wage and Hour Division to
support greater enforcement of the Fair Labor Standards Act and
the Family and Medical Leave Act
–  An increase in 61 FTEs for WHD alone
18

More regulatory concerns
§  Impacts of the Affordable Care Act
as the employer mandate looms
§  Home health care exemption
status change
§  OFCCP and EEOC are deploying
more compliance resources with a
focus on pay equity
§  Potential changes to overtime
regulations
19
“I hereby direct you to propose revisions to modernize
and streamline the existing overtime regulations.”
--President Barack Obama to Labor Secretary Perez, March 13, 2014

Compensation Outlook 2014
20

Reward program funding
PERCENT OF ORGS INCREASING FUNDING VERSUS
PREVIOUS YEAR
23%
28%
37%
28%
23%
20%
22%
24%
25%
35%
22%
26%
0%
5%
10%
15%
20%
25%
30%
35%
40%
2011 2012 2013 2014
PERCENTOFORGANIZATIONS
Healthcare MeritIncreases Bonus
PERCENT OFORGS INCREASING EMPLOYEE SHARE OF
HEALTHCARE COST
27%
43% 45%
15%
67%
64%
51%
23%
29%
44%
45%
16%
0%
10%
20%
30%
40%
50%
60%
70%
80%
2011 2012 2013 2014
PERCENTOFORGANIZATIONS
Deductibles EmployeeContributions Co-Pays/Co-Insurance
21

Staffing
22
NET CHANGE IN STAFFING LEVELS, YEAR-OVER-YEAR
42%
44% 45% 45%
49% 47%
37%
35%
30%
29%
25%
27%
14%
14% 15%
0%
10%
20%
30%
40%
50%
60%
2010 2011 2012 2013 2014
PERCENTINDICATINGCHANGE
Increase No Change Decrease

Reductions
23
47%
60%
27%
29% 29%
27%
0%
10%
20%
30%
40%
50%
60%
70%
2009 2010 2011 2012 2013 2014
%ofrespondentsindicatingRIF

Will they stay or will they come?
24
71% 73%
15%
16%
15% 11%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Retaining high performers/critical functions Attracting quality new hires
Unprepared
Neutral
Prepared

Compensation challenges
§  Big data and analytics
§  Generational issues/baby boomer
retirement
§  Automation/Technology
§  Decentralization/remote workforce
§  Regulation
§  Skills scarcity
§  Economy/volatile markets
§  The influence of HR in
implementing change
§  Pay for performance
§  Modest merit and HR budgets
25
Prepared Neutral Unprepared
Succession planning 45% 24% 30%
Baby boomer retirement 35% 38% 27%
Increasingly remote
workforce 34% 39% 27%
Engaging the next
generation of workers 45% 29% 26%
Automating Comp & HR
processes 52% 24% 23%
Leadership development 56% 23% 22%
Social networking 45% 34% 21%
HR analytics 52% 27% 21%
Aligning pay with
performance 61% 20% 19%
Big data 37% 44% 19%
Globalization 32% 51% 17%
General employee
engagement 64% 22% 14%
Economic uncertainty 48% 41% 12%
Containing healthcare costs 70% 23% 7%

Compensation & communication
26

Managers
27

Executive compensation
§  European decisions relative to Say on Pay and new focus on how
much is too much
§  Say on Pay’s influence on the board of directors
§  Stronger executive pay disclosure
§  Better linkage of pay to performance
§  Shift from use of time to performance-based equity
§  Additional definitions of what annual pay means
§  Debates over peer group use
§  Passage of requirement to disclose ratio of CEO pay to average
employee
28

How Managers and Employees Feel
29

Pay fairness over time
Notes: WorkTrendsTM U.S. only.
* Data were not collected in 2006, so mean across all years was used.
30

Perception matters
Notes: WorkTrendsTM 2013 U.S. only.
31

Drivers of fair pay
32

Building belief in pay fairness
Values are relative weights.
33

Current perceptions
34

Communication breakdown
35

How well are raises and bonuses handled?
36

How well raises and bonuses are handled
impacts perceptions of pay fairness.
37

#WFwebinar

•  Also please fill out the
event survey.
•  Please take this time to
submit your Questions.

#WFwebinar

Join our next Webinar!
Making
Performance
Management
Work:

Uncommon
Commonsense
Insights

Wednesday, April 16, 2014
2pm ET / 11am PT
Register for all upcoming Workforce Webinars at
www.workforce.com/webinars

Total Rewards 'State of the Union': Top Trends, Challenges and Recommendations for the Coming Year

Recommandé

Recommandé

Contenu connexe

Tendances

Tendances (20)

En vedette

En vedette (7)

Similaire à Total Rewards 'State of the Union': Top Trends, Challenges and Recommendations for the Coming Year

Similaire à Total Rewards 'State of the Union': Top Trends, Challenges and Recommendations for the Coming Year (20)

Plus de Human Capital Media

Plus de Human Capital Media (20)

Total Rewards 'State of the Union': Top Trends, Challenges and Recommendations for the Coming Year