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Willis Towers Watson

Talent Agenda Series HR Conference

By Jaap Scholten

Workshop Compensation & Reward

Johannesburg, 4 November 2016

© 2016 Willis Towers Watson. All rights reserved.

Workshop’s agenda

© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 2

1. Introduction Who are we, What is our Value Offering?

2. Key challenges What is shaping the Compensation & Reward agenda today?

A couple of key challenges

Brainstorm session

3. Closing Thoughts

3

Who are we, What is our Value Offering?

Introduction

© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only.

Data Services & HR Software: Overview


Data Services

Compensation,

HR policies and

benefits, design

practices surveys

and publications

for 110 countries

Custom client

analysis and

studies

Flexible reporting

and analytics

delivered online

https://www.towerswatson.com/en/Services/our-solutions/hr-software

Geographical breadth — 110 countries

5© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only.

Latin America

(18)

ArgentinaBrazilChileColombiaDominican RepublicCosta RicaEcuadorEl SalvadorGuatemalaHondurasMexicoNicaraguaPanamá

Paraguay

Peru

Puerto Rico

Uruguay

Venezuela

Continued harmonization of our global offering

Europe, Middle

East and Africa(71)

AlgeriaAngolaAustriaAzerbaijanBahrainBelgiumBelarusBosniaBulgariaCroatiaCyprusCzech RepublicDenmarkDRCEgyptEstoniaFinlandFranceGeorgiaGermanyGhanaGreeceHungaryIraqIrelandIsrael

Italy

Ivory Cost

Jordan

Kazakhstan

Kenya

Kuwait

Latvia

Lebanon

Lesotho

Lithuania

Luxembourg

Macedonia

Mauritius

Malawi

Mauritius

Moldova

Morocco

Mozambique

Namibia

Netherlands

Nigeria

Norway

Oman

Pakistan

Poland

Portugal

Qatar

Romania

Russia

Saudi Arabia

Senegal

Serbia

Slovakia

Slovenia

South Africa

Spain

Sweden

Switzerland

Tanzania

Tunisia

Turkey

Ukraine

UAE

UK

Asia Pacific

(19)

AustraliaBangladeshBruneiCambodiaChinaHong Kong IndiaIndonesiaJapanKorea

MalaysiaMyanmarNew ZealandPhilippinesSingaporeSri LankaTaiwanThailandVietnam

North America

(2)

CanadaUnited States

Source: WTW Compensation Surveys

Our Compensation & Benefits package offering


Kenya

Libya

Tunisia

Algeria

Egypt

Ethiopia

DRC

Zambia

Angola

Namibia

South

Africa

Morocco

Nigeria

Cote-

d’Ivoire

Senegal

Cameroon

Ghana

Tanzania

Zimbabwe

Botswana

Malawi

Gabon

Mali

Guinea

Uganda

Congo Burundi

Sudan

South

Sudan

Mauritius

Swaziland

Lesotho

Saudi

Arabia

Chad

Somalia

Madagascar

CAR

Niger

Mauritania

Base Pay

Guaranteed Pay

Allowances

Variable Pay

(actual and target)

Profit Sharing

By Region

By Industry

sub-Sector

Compensation

Salary review and budget practices

Compensation policies

Starting salaries

Variable pay

Company cars

Guaranteed Pay, Allowances

and Perquisites

Sales force policies and practices

Education, training and professional

development

Working hours

Business travel and relocation

Attraction, retention and termination

Length of service award

HR Policies

Retirement

Health Care

Wellness

Risk Benefits

Paid Time Off

Meal Benefits

Flexible Benefits

Benefits Design

Practices

22 Countries

646 Participants

14k data lines

2016 General Industry Survey General Overview

South Africa


organizations

Male

vs.

Female

% eligible for a performance bonus

Average Years of Service:

years

Average size of the

organizations:

employees

Average age:

185

157

39.2

7.02

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Executives Managers Professionals Sales professionals Technical Support Business Support Manual Workers

Source: WTWDS 2016 General Industry Compensation Survey South Africa

35%

65%

46.6%

7

What else do we offer?

Publications, Forums, Events,..


online Forums All our events on the WTW events

page

Africa and Middle East online Forum


online Forums

85 members

Welcome!

Africa Consulting Desk: Supporting our clients across Africa

Towers Watson’s Africa Consulting Desk provides strategic consulting expertise and governance

support that reflects a holistic understanding of the varied dynamics across the markets that are

developing rapidly on the African continent

Develop solutions

applying deep

local knowledge

Centre of excellence for all

Africa related activities

Technical expertise and

implementation support

Strategic and governance

support

Africa

Consulting

Desk


Our Pulse Surveys – partnered with Africa Consulting Desk

2015 Salary Review and Management – Nigeria, Angola, Ghana, Kenya and

Egypt


You want a copy?

Drop me a note!

12

What is shaping the Compensation & Reward agenda today?

Key Challenges


HR Trends to Drive Business Success

What do we need to consider?


Equal Pay for Equal Value; King IV; etc.

5. Politics

Transparent communication to generate total rewards awareness4.

Communication

Employee segmentation and pay diversification3. Diversification

Flexibility: from the workplace to the pay package2. Flexibility

Agile and efficient tools to cope with talent shortage and new skill sets:1.Technology

The challenge for Companies and

Workers is “How does one remain

Relevant to, and Engaged with all

Stakeholders in a very competitive

environment?”

Everybody wants to be happy

You can’t always get (and give) what you want

Sub Saharan Africa 2016 Salary Increase and CPI


Challenges to take into consideration: Macro-Economics

Salary Increase Inflation

Real WageSource: 2016 Global Salary Budget Planning Report

-20.00%

-15.00%

-10.00%

-5.00%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

Ango

la

De

m. R

ep. o

f th

e C

ongo

Gha

na

Ivory

Coa

st

Kenya

Ma

law

i

Ma

uritius

Mo

za

mb

iqu

e

Nig

eri

a

Sene

gal

South

Afr

ica

Ta

nza

nia

Ug

and

a

Zam

bia

Zim

ba

bw

e

Inflation

is a main

issue in

the region

15

Source: Towers Watson 2015 High Tech Compensation Reports


Global Labor Markets: Base Pay Rates P1 (USD)

0

10000

20000

30000

40000

50000

60000

Ukra

ine

Pa

kis

tan

India

Vie

tnam

Ph

ilippin

es

Indonesia

Eg

ypt

Th

aila

nd

Chin

a

Russia

Rom

ania

Ma

laysia

Mo

rocco

Bu

lga

ria

Tu

nis

ia

Bra

zil

Alg

eria

Hungary

Po

lan

d

Slo

vakia

Cze

ch R

epublic

Pe

ru

Me

xic

o

Ke

nya

Colo

mb

ia

Jord

an

Arg

entin

a

Uru

guay

Ta

iwan

Costa

Ric

a

So

uth

Afr

ica

Nig

eria

Po

rtuga

l

Gre

ece

Tu

rkey

Chile

Sp

ain

Hong K

on

g

Lebano

n

Italy

Ko

rea (

South

)

Jap

an

Sin

ga

pore

Irela

nd

Sa

udi A

rabia

UK

Om

an

Neth

erla

nds

New

Ze

ala

nd

Fra

nce

Be

lgiu

m

Isra

el

Fin

lan

d

Canada

Sw

eden

Au

str

ia

Au

str

alia

Germ

any

UA

E

US

Norw

ay

Sw

itzerlan

d

Highest: Switzerland ($87k)

Lowest: Ukraine($5,6k)

Median: South Africa ($20k)

Challenges to take into consideration: Ukraine or Switzerland?

Willis Towers Watson analysis of Economist Intelligence Unit data, September 2016

Markets to Watch in 2016 - 2017

Bubble size = relative CPI

Limited key

talent pools


Seller’s

markets

for talent

Strong growth will continue

to fuel talent demand

-2

-1

0

1

2

3

4

5

6

7

8

0 5 10 15 20 25 30 35 40 45

GD

P G

row

th %

Unemployment %

Challenges to take into consideration: country specific circumstances

People Challenges in Africa: Demand

18

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

GG7

GG11

GG15

Median Annual Base Salary in USD; Willis Towers Watson General Industry Compensation Survey 2016

The value of skills and

experience in Africa is

clear

The steepest

curves are

seen in Africa

and LATAM


0.014%

0.018%

0.024%

0.03%

0.033%

0.037%

0.04%

0.041%

0.063%

0.068%

0.102%

0.134%

0.173%

0.326%

0.714%

1.268%

1.563%

1.611%

1.763%

Tanzania

Ghana

Uganda

Ethiopia

Mozambique

Zambia

Malawi

Lesotho

Nigeria

Cameroon

DRC

Kenya

Senegal

South Africa

Poland

Hungary

Spain

Netherlands

Germany

R&D Personnel as a % of Labor Force

People Challenges in Africa: Supply

19

Specific Skills Are

Hard to Get

Such youthful

markets makes

experience rare

And if that

experience was

abroad…?

Source: Towers Watson analysis of Economist Intelligence Unit and UNESCO data, September 2016

Candidates with

either know their

value


10

15

20

25

30

35

40

45

Average Age

20

Compensation & Benefits Snapshot

Beyond the Data


Allowances and Perquisites Prevalence in South Africa

Average Percentage across employee groups


Source: 2015 General Industry Compensation Survey South Africa HR Policies and Practices Report

51.9%

34.0%

17.6%

7.9%

5.2%

3.5%

2.6%

0.9%

0.5%

Mobile Telephone Allowances

Transportation Allowance

Product/Service Discounts

Home Telephone Allowances

Housing Assistance

Professional Memberships

Vacation / Home Leave Assistance

Social/Sports Clubs

Representation Allowance

21

South Africa Benefits Landscape (2015 data)


Retirement

Typically the employer

funds some portion of the

medical aid contribution

paid to private insurers,

but this is not required by

law, and this amount

usually forms a part of

the employee's

employment package.

Wellness

Top 3 services included

in wellness programs:

1. Vaccinations

2. Health screening (e.g.,

biometrics, preventive

care, early disease

detection, hypertension)

3. Health education / portal

Health Care

The majority of plans are

enterprise plans but in

recent years, the market

has also seen considerable

growth in multi-employer

defined contribution (DC)

plans organized along

industry lines.

The median of a life

insurance’s lump-sum

payment is 48 times the

monthly salary

Risk Benefits Paid Time OffThe median number of

days granted for other

paid leave due to death

in immediate family is 4

days

Meal BenefitsOnsite cafeteria or meal

services are the most

prevalent meal benefit

while grocery/food

allowances or

reimbursement for meal

expenses is not widely

used in the market.

22

Source: 2015 General Industry Compensation Survey South Africa Benefits Design Practices Report

Company Car Trends – South Africa


24

Three Key Challenges to discuss


The Technological Revolution

Are “Hot Skills” rewarded different?


Source: 2015 Willis Towers Watson Research

25

1. Which positions do you find difficult

to attract and retain?

What is your attraction & retention

policy from a compensation & reward

perspective?

How do you invest in Talent?

Company Car Trends

Car benefit is in the picture


2. Company Car benefits

Do you have any plans to change the

current car benefit policy?

If so:

What are the reasons you make the

change?;

What changes do you plan to

implement?

Reward Practices

Reward Practices


3. (Political) Reward Practices

Inflation and Currency Devaluation;

Equal Pay for work of Equal Value;

King IV and remuneration;

What do you expect from WTW?

Thank you


Documents

Talent Agenda Series HR Conference - Jobs in · PDF fileTalent Agenda Series HR Conference By Jaap Scholten Workshop Compensation & Reward Johannesburg, 4 November 2016 ... issue in