Total Rewards Leader Board In-Person Meeting
Please see below for a summary of the March 20 meeting in Scottsdale, AZ:
The day started with a meeting of more than 70 members of i4cp’s various Boards to discuss new research on i4cp’s productivity model (The People Profit Chain). Five core areas include performance indicators with high correlations to market performance tied to market (customer), strategy (execution), culture (agility), leadership (development) and talent (performance). Members then broke into mixed groups to discuss specific practices and solutions to address the five areas. Mark as posted an article on the i4cp website regarding this session: https://www.i4cp.com/productivity-blog/how-the-best-companies-think-about-markets-and-customers.
The Board finished the morning in closed session to discuss top issues/challenges.
o Genentech – Adjusting to off-patent products. Workday implementation. How to communicate that median of the market is a competitive position (for a high performer). Discussion of how to communicate EVP, change perceptions about comp and its role, and address retention issues (managers often blame comp). Big issue is ensuring the value we provide to our employees is well understood and appreciated by them.
o Hertz – Moving incentives down in the organization. Demonstrating the ROI for additional funding of incentives for customer facing roles (vehicle service attendant, bus drivers, instant return reps) or how to modify if not demonstrated. Dealing with the issue of rewards for satisfaction scores.
o Qualcomm – Integrating programs and performance management systems for two large companies, while minimizing costs and successfully managing change across the impacted populations. Addressing layoff and retention concerns. Implementing Workday.
o Gilead – Working with proxies. Employee engagement. Remaining competitive when others in the bay area offer so many other benefits and perquisites.
o IHS Markit – Dealing with HR service delivery models and implementing Workday. How to build an integrated culture in a highly-distributed business. Addressing transition issues with changes in leadership. No longer U.S. ownership.
o HSBC – Getting employees and managers to shift from 2 formal PM sessions to more frequent check-ins. Other performance management design system issues, regulatory climate and change in culture. Working in 80 different counties. Getting ownership of line staff for development and other comp issues.
o Choice Hotels – Understanding of the employee population so we can get to engagement. Improve as a Great Place to work. Align with preferences survey and engagement. Expanding globally. (See Louise Stark presentation on employee preferences survey).
Louise Stark of Choice Hotels shared a presentation on preferences survey conducted at Choice Hotels. Focused on how employees experience the company. End goal is to increase engagement. (Posted on the TRL board page.)
Members met with the i4cp CHRO Board to discuss the issue of Executive Compensation trends and how to address them. Among the issues discussed: Setting long term goals and incentives for them, shareholder advisory groups, aligning leadership behavior to long-term goals, balancing individual with financial goals, Dodd Frank, and new directions in FLSA. Talent risk an important topic related to executive pay decisions and retention. How to manage this? Want to explore this more. The group agreed to an ongoing collaboration to drive solutions. One area of interest onboarding Comp Committee members. Another interest: a guide for retaining comp consultants.
Next discussion was an M&A panel led by Julie Tschida Brown of IHS Markit, Kylene Nixon of Qualcomm and Kerry Chou of WorldatWork. Issued covered: inversions, strategic business expansion and talent planning, the need for dedicated HR M&A teams (or a PMO). “One of the best litmus tests – is when you get brought in,” Chou said. Better if at the due diligence stage – versus make it work stage. Still, role of rewards staff critical – especially the rewards harmonization process.
Mark reported on new members since our last meeting: Nikhil Moorthy from Flex; and Derek Potter from T-Mobile. The membership group now stands at 15 companies.
The meeting ended by discussing possible research projects. Some interest in the area of Total Rewards marketing and campaigns. How to better communicate the employee value proposition – beyond comp. We also shared interest in future agenda topics, which will be reflected in meetings later in the year.
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