Rewards Alignment with Business Objectives
Hosted by BP p.l.c. at their executive office in London, United Kingdom the 2019 Autumn Global Total Rewards Network Meeting explored restructuring Total Rewards in an ever-changing global workforce. Leaders must find the right strategies to understand the shifting landscape and apply Rewards to business objectives that focus on both shareholders and stakeholders.
During the meeting, members shared the following topics of interest:
• Digitization of Total Rewards
• Rewards Transformation
• CEO Transition
• Embedding Job Architecture
• Pay Transparency
• Employee Experience
• Pay for Performance Planning
• Mergers & Acquisitions Structure Team
• Incentive Plans
• Future of Compensation Benchmarking
• Business Performance Metrics
• Societal Aspect of Total Rewards
• Data Transparency
Our host provided a current overview of how BP approaches their business and makes decisions through the influences of shareholders, governments, and the environment. He also shared with Members BP’s journey in Talent attraction and retention and Employee Value Proposition, which includes focuses on
opportunities, rewards, diversity, and company purpose.
Member-Led Discussions: Pay for Performance
This member company discussed their current transformation of its bonus and incentives system to a flexible solution of base pay and merit increases to ensure the following results:
• Performance-based adjustment of base salary for all employees
• Base salary increases based on the discretionary assessment by the manager
• Managerial freedom to adjust employee base salary within a framework set by the Center of Expertise Total Rewards
The bonus system was redefined due to high levels of individual target achievement combined with business changes. During this transition, this Member company will implement organizational improvements including changes in roles, jobs, descriptions, organizations and reporting lines. Focus on collective targets
for employees on all levels and units is priority and will create consistency and bonus alignment.
Member Sharing Session: Your Issues and Peer Solutions
Members presented their work in Total Rewards and engaged fellow members in solutions and experiences in Pay Philosophy, Digitizing Total Rewards, Future of Work, Pay for Performance, Flexible
Rewards, and Compensation Strategy.
2019 Human Capital Trends Report: The Rapidly Changing Workforce and the Implication for Rewards
Andrew Erhardt-Lewis, Northwest European Rewards Practice Leader, Deloitte
In the 2019 Deloitte’s Global Human Capital Trends report, CEOs were asked to rate their most important measure of success. The number one issue was “impact on society, including income inequality, diversity, and the environment.” But while CEOs have recognized the issue, they certainly have not solved for it.
Leading a social enterprise is not the equivalent of practicing corporate social responsibility. It is not about engaging in social impact programs or defining a purpose or mission statement. Leading a social enterprise is about recognizing that while businesses must generate a profit and deliver a return to shareholders, it must do so while also improving the lot of the workers, the customers, and the communities in which they
live. Fulfilling this aim requires reinvention on a broad scale.
Deloitte offers five principles to frame the “human focus” for the social enterprise and serve as benchmarks against any measurable action or business decision that could potentially affect people. Those principles are Purpose and Meaning, Ethics and Fairness, Growth and Passion, Collaboration and Personal Relationship, and Transparency and Openness. Regardless of the path taken, the aim should remain constant: a renewed human focus in a world where profits meet purpose, talent trumps technology, and the social enterprise reigns supreme.
Member-Led Discussions: Pay Equity
This Member company made Pay Equity a focal point in a societal conversation about corporate equality, values, and culture. The organization acknowledges the differences in what equal pay and pay gap reporting mean in various regions. The company is an equal-pay organization that has a market-based pay system to ensure competitive pay. Employees in the same jobs and locations, and who have similar experience and job and performance histories, are paid similarly without regard to gender or race.
This Member company’s Diversity & Inclusion ambition is to provide equal opportunities to everyone everywhere and to ensure all employees feel uniquely valued and safe to contribute their best. In their Pay Equity structure, this company rewards employees for skill sets and values their contribution on an equal basis. By 2020, 95% of their employees will work in a country with commitment and process in place to achieve gender pay equity. Their Total Rewards team implements a systematic process to analyze and address pay discrepancies across genders. They take corrective actions at global and country levels to reduce identified gaps.
About this Summary
This briefing is for HR leaders outside of Executive Networks. A detailed meeting summary is provided to members and their teams. To request a member list, please contact Executive Networks.