the future of reward - peter newhouse / unilever

THE FUTURE OF REWARDPETER NEWHOUSEGLOBAL HEAD OF REWARDUNILEVER

OUTLINE OF THE SESSION

TheVision People

TechnologyOrganisations

How Reward is evolving

NewFoundation

s

How RewardWorks

New Directions

1 23 4 5

6

How technology and the new generation are shaping THE FUTURE OF REWARD

Pay custom tailored to fit Lots of flexibility Easy to deliver Easy to change

WHERE WE CAME FROM

THE PAST – NOT ‘ALL GOOD’

Pay was simple, not worth so much Inconsistent from person to person Labour intensive to deliver Slow moving

WHAT’S DIFFERENT?

CHANGE

ORGANISATIONAL DRIVERS

Focus Standardisation Simplification Fewer resources

PEOPLE DRIVERS

HOW WE WANT THINGS TO BE

Closed Open Inequitable Fair Erratic Consistent

Incoherent Explainable Rigid Flexible Hierarchical Flat

Zeitgeist

8

HOW REWARD IS EVOLVING

Centralised

Independent

De-centralised

Interdependent

Hopelessly Local

Mindlessly Global Multi-Local

Ad-Hoc andInconsistent

One SizeFits All Segmented

TECHNOLOGY

ENABLER ENABLERCONSTRAINT

Consistency Data Automation

Segmentation Personalisation

THE OPPORTUNITY

Technology with Humanity aligned to Purpose

LAYING THE FOUNDATIONS

New Principles New Data & New Technology New ways to look at Reward

PRINCIPLES

Attract Retain Motivate

Pay More! Pay More!! Pay

More!!!

With only Pay - how do you ….?

ToughPlace to

WorkATTRACT

GoodPlace to

Work

Lonely Place to

Work

RETAIN

MOTIVATE

THE REWARD PROPOSITIONFI

XED

PAY

VARIABLE PAY

InterestingPlace to

Work?VocationalPURPOSE

The wayyou pay

will AttractRetain &Motivatedifferentkinds ofpeople

14

Systems &ProcessesReward

BehaviourValues

Culture

HOW REWARD WORKS

Individual

Collective

Insi

de

Outside

NEW DATA & NEW TECHNOLOGY

1. Reward Profile – analytics

2. ‘Rate-my-Reward’ – feedback

3. Market Data – positioning

4. Pay Philosophy – authenticity

5. Employee Engagement

6. Business Results

NEW WAYS TO LOOK AT PAY

NOW SOON LATER AFTER

SALARY

BENEFITS

BONUS

SHARES

PENSION

NEW DIRECTIONS FOR REWARD

More benefits, less variable pay Reward as long term cash flows Lifestyle alignment “Advances” Giving people what they value

Pay custom tailored to fit Lots of flexibility Easy to deliver Easy to change

THE FUTURE OF REWARD

THE VISION OF WHERE WE WANT TO BE

YOUR QUESTIONS

THE FUTUREOF REWARD