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Total Compensation Management
Willis Towers Watson and Ventana
Research
© 2017 Willis Towers Watson. All rights reserved.
Today’s Willis Towers Watson Presenters
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Carole Hathaway
Global Leader, RewardsConnect with Carole on LinkedIn
Chris Pinc
Director of Product, HR SoftwareConnect with Chris on LinkedIn
Mark Smith
CEO and Chief Research Officer, Ventana Research
Derek Beebe
Director, Talent and RewardsConnect with Derek on LinkedIn
Guest speaker:
© 2017 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only.
www.ventanaresearch.com
Follow Ventana Research on Twitter
Follow Ventana Research on LinkedIn
3
About Willis Towers Watson HR Software
© 2017 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only.
There is an important call to action for today’s organizations
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It’s time to modernize EVPs and Total Rewards strategies and programs to
remain relevant and drive performance
Managers are effective at
reflecting performance in pay
decisions
49%
Only 54% of employees understand
how their bonus is
determined
Managers execute the base pay
program well
51%
Source: 2016 Willis Towers Watson Global Talent Management & Rewards and Global Workforce Studies
Barely half of organizations have a formal process
in place to ensure compensation fairness
© 2017 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only.
The modernization agenda
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Given today’s context leading companies are making changes to address five
key challenges
• Reducing complexity, particularly in job and pay structures
• Replacing manual /spreadsheet led processes
• Driving consistency in approach and improved governance Efficiency
• Legislation is some jurisdictions is requiring transparency on pay
• Employee / generational expectations are changing
• Improving understanding, engagement and perception of fairnessTransparency
• Targeting spend – critical roles, top performers, hipos
• Total rewards strategy and design by key segments
• Choice and flexibility – total rewards optimisation (TRO)Segmentation
Focus on the EVP
Equipping managers
• Aligned to business strategy and culture
• Focus on rewards and careers
• Segmented for key talent groups to drive attraction and retention
• Capability building to improve decision-making and communication
• Provide tools and technology to drive process improvement
• Reducing time spent – making sure the focus is on what matters
© 2017 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only.
© 2017 Ventana Research6 © 2017 Ventana Research6
© 2017 Ventana Research7 © 2017 Ventana Research7
Software Simplifies Compensation
Observations:
• Companies waste time on
disparate tasks and
calculations.
• Processes to review and
update approach should be
simpler than implemented.
• Linking compensation with
talent management is usually
not done.
• Lack of communications
between organization,
manager and employee.
© 2017 Ventana Research8 © 2017 Ventana Research8
Supports Human Capital Management
Hiring Process
Job Offer / Position
Interview
Negotiation
Performance Review
Compare
Benchmark
Propose / Offer
Promotion / Succession
Compare
Benchmark
Propose / Offer
© 2017 Ventana Research9 © 2017 Ventana Research9
Compensation Software for Equal Pay
Related Research:
• Modeling compensation
across demographics requires
understanding of job positions,
competencies and experience.
• Over a third (37%) indicate a
system is used to ensure
compensation levels are
applied equally across
demographics.
• Equal compensation pay
becomes a standard process
for all organizations to assure
talent of effective processes. Source: Ventana Research Total Compensation Management
Benchmark Research
© 2017 Ventana Research10 © 2017 Ventana Research10
Compensation Software Improves Retention
Related Research:
• Tenured workers can be stuck
in governed pay raises that
can fall behind market pay and
newer employees.
• Most organizations (79%)
assess compensation annually
with performance reviews.
• Exception workflow should be
automated with supporting
worker risk related information
and metrics.
Source: Ventana Research Total Compensation Management
Benchmark Research
The importance of a holistic approach
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Compensation Professionals
Need to Determine Right Amount to
Pay for Right Talent; Validate with High
Quality Data
Managers
Need to Make Optimal Compensation Decisions On
Each Individual Employee
Employees
Want to Understand Full Value of Total
Rewards
Successful compensation management requires getting the full cycle right
© 2017 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only.
About Willis Towers Watson Compensation Software
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• Empowers compensation professionals to become essential, strategic
business partners
• Streamlines administrative and tactical activities, enabling focus on value-add
analytics and plan design
• Includes access to a thriving community with complimentary events, webinars
and trend reports that provide timely information on the latest in compensation
• Partner with our world-class compensation consultants
The result: compensation analytics and program design that enable even
the most complex organizations to attract, retain and engage the right talent
© 2017 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only.
Data, Analysis and Design
About Willis Towers Watson Compensation Planning Software
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• Highly configurable to meet the needs of the most complex organizations.
• Enables managers to be successful by providing her with the information
she needs to make smart pay decisions.
• Integrates with Performance module to support pay-for-performance culture
• Consulting on optimal processes for the full cycle with every implementation
The result: managers make the best possible decisions on each employee
within the framework of the company’s optimal compensation design
© 2017 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only.
Compensation Management
About Willis Towers Watson Total Rewards Portal Software
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• Consumer-grade experience that employees have come to expect
• Highly personalized, including paper option for those without internet access
and for executives who expect high-touch delivery of rewards information
• Can be combined with other features of our HR Portals to fully convey all of
the rewards and benefits the company has to offer
The result: each employee understands and appreciates the full value of
the rewards their company has to offer
© 2017 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only.
© 2017 Ventana Research15 © 2017 Ventana Research15
What is Your Compensation Readiness?
© 2017 Ventana Research16 © 2017 Ventana Research16
Finding a Partner for Compensation
Source: Ventana Research Total Compensation Management
Benchmark Research
A comprehensiveapproach to
address the
opportunities
using a people,
process,
information and
technologyframework.
© 2017 Ventana Research17 © 2017 Ventana Research17
Importance in Evaluating Compensation
Source: Ventana Research Total Compensation Management
Benchmark Research
Usability
Manageability
Functionality
TCO/ROI
Reliability
Adaptability
Validation
68%
64%
57%
54%
52%
50%
38%
How important to your organization is each of the following technology and vendor considerations in selecting compensation management
software? (Very Important Responses)
© 2017 Ventana Research18 © 2017 Ventana Research18
Modernizing Compensation Software
• Our research finds that Willis
Towers Watson provides a
robust and balanced
compensation offering.
• Willis Towers Watson helps
provide assessment and
benchmarking services to
guide organizations.
• Advancements in Usability are
advancing its impact for
organizations. Source: Ventana Research Total Compensation Management Value
Index Research
Our Approach
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Great HR
Software
Proprietary
Data and
Analytics
World-class
ConsultingUnique ability
to help clients
solve their
most complex,
strategic
human capital
challenges
+ + =
© 2017 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only.
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Willis Towers Watson Compensation Software: Clients
Willis Towers Watson Compensation Software provides detailed, user-
friendly reporting and analytics capabilities on all of the above
More than 3 million employees use Willis Towers Watson Compensation
Software to view total rewards statements; 1.7 million more learn about
their company through Willis Towers Watson HR Portal Software
More than 92,000 managers use Willis Towers Watson Compensation
Software to make decisions on how to reward their employees each year
More than 30,000 clients rely on our industry-leading compensation Data
Services, with benchmarks in 115 countries based on data from 15 million
employees
More than 350 clients use Willis Towers Watson Compensation Software to
design, analyze and enhance their compensation programsCompensation
Design
Compensation
Data
Compensation
Management
Total Rewards
Portal
Software
Reporting and
Analytics
© 2017 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only.
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Discussion and Questions
© 2017 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only.
For more information…
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Willis Towers Watson Compensation Software
Willis Towers Watson Compensation Planning Software
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