total reward statement evolution pam schmidt, manager retirement plans, target tom staroszczyk,...
TRANSCRIPT
Total Reward Statement Evolution
Pam Schmidt, Manager Retirement Plans, Target
Tom Staroszczyk, Total Rewards Portal Leader, Aon Hewitt
Agenda
Target’s Total Rewards Journey
My Pay and Benefits.com
The Results
The Future
. . . . from Paper to Portal
Target's Total Rewards Journey
Overview of Target’s Journey
Late 1990’sInternally Developed
Paper Statements
2001Outsourced
Paper Statements
2006Shifted
To Online Statement
2010TransitionedTo Pay & Benefits
Portal
2011 and BeyondGlobal
Expansion
Target—Annual Paper Statements Began producing statements internally in late 90’s
Transitioned to paper statements with Aon in 2001
Annual total rewards statements served as the singular place to provide the holistic snapshot of value
Ensured that all employees received the total rewards message once a year
Served as a record that could be filed and saved with other important documents
Late 1990’sInternally Developed
Paper Statements
2001Outsourced
Paper Statements
2006Shifted
To Online Statement
2010TransitionedTo Pay & Benefits
Portal
2011 and BeyondGlobal
Expansion
Late 1990’sInternally Developed
Paper Statements
2001Outsourced
Paper Statements
2006Shifted
To Online Statement
2010TransitionedTo Pay & Benefits
Portal
2011 and BeyondGlobal
Expansion
Late 1990’sInternally Developed
Paper Statements
2001Outsourced
Paper Statements
2006Shifted
To Online Statement
2010TransitionedTo Pay & Benefits
Portal
2011 and BeyondGlobal
Expansion
Industry—Annual Paper Statements
Late 1990s
Strong demand for printed total rewards statements
Small few began implementing “Custom” online total rewards solutions
Online solutions were very expensive
Early 2000s
More cost effective online total rewards platform were created - designed for efficiency, yet highly customized for each client.
Concept intrigued many clients but access to the internet was an important issue
Target—Shift from paper to online In 2006, began providing paper & online statements through local vendor, Universal Data Corporation
(UDC)
Available 24/7—current data, seamless action taking, interactive, provides immediate feedback
Personalized for each unique audience—execs, salaried, hourly
Expansion beyond today’s annual total rewards—Retirement Income, Equity Growth, Wealth Accumulation, Survivor Income
Interactive modeling to help employees maximize value
Required constant promotion to maintain consistent good site usage
Late 1990’sInternally Developed
Paper Statements
2001Outsourced
Paper Statements
2006Shifted
To Online Statement
2010Transitioned
To Pay & Benefits
Portal
2011 and BeyondGlobal
Expansion
Industry—Shift from paper to online Mid 2000s
Online access becoming less of an issue
Demand for online total rewards solutions growing
Clients needs varied requiring different versions of online solutions:
Communicate the value of the hidden paycheck
Help employees understand the mechanics of specific rewards programs so they can take full advantage of what is being offered and maximize their opportunities
Mid to Late 2000s
Clients demanded more flexible solutions - more personalization, targeted messaging, and seamless integration with 3rd parties
Communicating the total value of the job offer to candidates also became important. Companies wanted to differentiate their job offers to attract the right talent to meet their business needs.
Target—One Stop Total Rewards Portal In early Jan. 2010, created benefits portal to include transactional and informational data on all pay & benefits
Simplify the user experience for team members—one password, one url, SSO to 3rd parties, consistent branding
Gain more traction for total rewards
Any time they manage their 401(k) or other benefits
Every year during Benefits Open Enrollment
Driving behavior change through targeted messaging
Economies when working with one vendor—administration & portal
Late 1990’sInternally Developed
Paper Statements
2001Outsourced
Paper Statements
2006Shifted
To Online Statement
2010Transitioned
To Pay & Benefits
Portal
2011 and BeyondGlobal
Expansion
Industry—Total Rewards Portal Late 2000s – usage for online total rewards solutions varied – despite heavy promotion, many companies
struggled to achieve consistent usage
Online access higher than ever, yet employees were easily confused with too many places to find information
Generic communications found not as effective as personalized
More personalized communications became a critical component to reaching employees
Clients wanted a customizable and flexible communication platform, that could simplify the user experience for employees and drive behavior changes through more targeted messaging
By including Total Rewards in this One Stop Shop solution, clients found they could gain more traction for total rewards
www.targetpayandbenefits.com
Integrated Total
Rewards
Integrated Total
Rewards
PersonalizedAnnouncements
PersonalizedAnnouncementsEasy Access to
Key Data Easy Access to
Key Data
Simpleand
IntuitiveNavigation
Simpleand
IntuitiveNavigation
Personalized Communication Platform
Take Charge
You Have Options
An Ounce of Prevention
Right Choices
Incentive Plan
Personalized Communication Platform
Take Charge
You Have Options
An Ounce of Prevention
Right Choices
Incentive Plan
Personalized Communication Platform
Take Charge
You Have Options
An Ounce of Prevention
Right Choices
Incentive Plan
Personalized Communication Platform
Take Charge
You Have Options
An Ounce of Prevention
Right Choices
Incentive Plan
Personalized Communication Platform
Take Charge
You Have Options
An Ounce of Prevention
Right Choices
Incentive Plan
My Pay tab:
My Benefits & Retirement tab:
My Discounts, Perks & Time Off tab:
My Stock Grants tab:
Increased Team Member Engagement
Annual Best Team Survey feedback improved 2008 favorability
2009 favorability
2010 favorability
Significantly increased usage
Comparing Usage In 2007, 33,000 unique team members visited the old Web site
109,000 unique IDs visited www.tgt401k.com during 2008
Over 200,000 visits in first two months after portal rolled out in January, 2010
Over 2 million hits during all of 2010
Continuous Improvement
Living, breathing real-time portal Monthly content & data refreshes Added Quick Links section Global Expansion
Global Expansion
Target - India Strategy About 6 months post-live date,
made available for ~1,200 Target India team members
Significant customization for different pay, benefits, and currency
Kudos for providing what U.S. based employees can access on the site
Industry - Global Interest Focus on largest employee
concentrations Consider between one or multiple
applications
What’s Next?
As the economy improves, the workforce will be on the move
Differentiating your job offer will be critical to attracting key talent
Candidate solutions must be seamlessly integrated with applicant tracking systems to keep it simple for recruiters
Total Value Of The Job Offer
Changing employee behaviors requires different techniques
Personalization is playing a large role
The Debate: How Personal Do You Get?
Slow growing trend to get more personal – leveraging key personal health information to drive more targeted messaging
The Personalization Spectrum
Imp
act
Behavior Change
Awareness
Communication Techniques
Changes in behavior can maximize value of reward programs for both company and employee
Get employees to see the value
Get employees to increase the value
Additional Thoughts Leverage Technology — To eliminate redundancy and improve integration. Consume established modules
through portlet technology to eliminate clicks and provide more accurate results
More Interactivity—User Defined Regions—Clients and employees can choose, expand, collapse, and move relevant modules
Social Media—Helping gain employee interest and participation in key initiatives—ex: wellness programs
Secure Family Member Access—To enable better education and decision making
Find Information Easier— Through the use of a personalized and searchable knowledgebase. Allowing clients to further simplify the user experience and get employees answers to their questions faster