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3/17/2015
Building a Superior Employment Deal
Insights from the 2014 Global Talent Management and Rewards Study
and the 2014 Global Workforce Study
March 20, 2015
Prepared for the 2015 MidSouth Compensation Symposium
© 2015 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
About the studies
The 2014 Global Talent Management and Rewards Study
 19th annual study of employers’
views on trends and issues in
rewards and talent management
 1,637 participants
 31 markets globally
 Fielded April – June, 2014
Employee views captured via our Global Workforce Study
32,000 full-time workers
 26 markets globally
 Fielded April – May, 2014

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A superior employment deal drives desired outcomes
And less likely to report having difficulty attracting and retaining
employees — particularly those in key employee segments.
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3/17/2015
Organizations have made some progress in formalizing
and delivering the employment deal since 2012
Percentage of employee favorability
Source: 2014 Towers Watson Global Workforce Study
Yet, less than half of employees say that their organizations
are living up to their promises in the deal.
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To develop a superior employment deal,
companies need to…
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The State of Attraction, Retention and
Sustainable Engagement
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Only four in ten employees globally are highly engaged
There is significant room for improvement
Source: 2014 Towers Watson Global Workforce Study
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Understanding sustainable engagement and its top drivers
is necessary to developing a superior employment deal
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Leadership
Goals and
Objectives
Workload and
Work/Life
Image
Empowerment
 Effective at growing
the business
 Sincere interest
in employees’
well-being
 Behaves consistently
with organization’s
core values
 Trust and confidence
in job being done
 Good understanding
of organization’s
business goals and
steps needed to
reach those goals
 Healthy balance
between work and
personal life
 Understanding of
how job contributes
to the organization
achieving its
business goals
 Enough employees
in work group to get
job done right
 Work arrangements
are flexible
 Amount of work
required is
reasonable
 Organization highly
regarded by general
public
 Management
involves employees
in decisions that
affect them
 Organization
conducts its business  Organization seeks
opinions/suggestions
with honesty and
of employees
integrity
 Organization acts
on employee
suggestions
For the top five drivers shown above, examples of the types of items in each category
Source: 2014 Towers Watson Global Workforce Study — Global
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Organizations continue to face challenges attracting and
retaining talent in key employee segments
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In fact, four in ten employees believe they need to actually
leave their current employer in order to advance
41%
of employees say they must join
another firm in order to advance.
Source: 2014 Towers Watson Global Workforce Study — Global
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Even employees who have been formally identified as
high potentials believe they need to leave, putting
companies in danger of losing some of their best talent
40%
of employees who have been formally
identified as high potentials by their
organization say they would need to leave
their organization to advance their career.
Source: 2014 Towers Watson Global Workforce Study
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Employers are already experiencing this reality, feeling
the pain of losing critical talent and the difficulty of
replacing them
More than half
report difficulty retaining
high-potential employees (56%)
and top performers (54%).
Additionally, nearly two in three
respondents are experiencing problems
attracting top performers (65%) and highpotential employees (64%), an increase from
two years ago.
Source: 2014 Towers Watson Talent Management and Rewards Study
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3/17/2015
Employers largely understand the top reasons
employees choose to join an organization...
Both employees and employers understand the value of base
pay in attracting and retaining employees.
Sources: 2014 Towers Watson Global Workforce Study and 2014 Towers Watson Global Talent Management and Rewards Study
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...but there is a disconnect on the importance of job
security & vacation/paid time off
Top Attraction Drivers
Sources: 2014 Towers Watson Global Workforce Study and 2014 Towers Watson Global Talent Management and Rewards Study
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As with attraction, employers underestimate the
importance of job security
Top Retention Drivers
The criticality of trust and confidence
in senior leadership is also missed.
Sources: 2014 Towers Watson Global Workforce Study and 2014 Towers Watson Global Talent Management and Rewards Study
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Developing a Superior Employment Deal:
Focus on the Key Drivers
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Simply having base pay and an accompanying short-term
incentive (STI) program is not enough
Uncertainty
about pay
equity is a
major issue for
employees.
Overall,
employees and
employers
agree that
delivery of these
programs is
falling short
Sources: 2014 Towers Watson Global Workforce Study and 2014 Towers Watson Global Talent Management and Rewards Study
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While competition for talent has increased, differentiation
of pay outcomes has trended down in recent years
Source: 2014 Towers Watson Global Talent Management and Rewards Study - Global
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3/17/2015
Highly evolved organizations do a better job delivering
on base pay and short-term incentives
Source: 2014 Towers Watson Global Talent Management and Rewards Study - Global
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Employees with effective leaders and managers are
much more likely to be highly engaged
Source: 2014 Towers Watson Global Workforce Study — Global.
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Understanding the drivers of manager effectiveness:
The item set
Crafting Jobs
 Manager assigns
tasks well suited to
my skills/abilities
 Manager
communicates
goals/assignments
clearly
Developing
People
 Manager coaches to
improve performance
 Career development
discussions in past
year with manager
have furthered
development
 Manager helps
remove obstacles
 Manager fairly
reflects overall
performance
 Manager effectively
in employee
works with employees
performance ratings
to set appropriate
performance goals
Delivering
the Deal
 Manager
differentiates
between high and
low performers
 Manager often
recognizes/appreciat
es good work
 Manager makes fair
decisions about
performance/pay
 Manager has enough
time to handle people
aspects of the job
Energizing
Change
 Manager
encourages
new ideas and
actions
Authenticity
and Trust
 Manager recognizes
own strengths/
weaknesses
 Manager does what
s/he says
 Manager listens
carefully to different
points of view
 Manager treats
employees with
respect
* These items fall into two categories
Source: 2014 Towers Watson Global Workforce Study — Global
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For employees, the principal driver of manager
effectiveness is consistency between words and actions
Managers also play a particularly important role when leadership
from the top of the organization is lacking.
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What Is the Key to Effective Program Delivery?
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Key Takeaways & Recommendations
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Creating a consumer-like experience:
How the best succeed
The most successful organizations:
 Have a strong employer brand and EVP that build an emotional
connection with employees
 Categorize employees into meaningful groups and deliver targeted and
personalized communications
 Use digital media to reach employees “where they’re at,” in ways that
are meaningful, engaging and fun
 Use social business/collaboration tools to build a sense of community
 Regularly use data analytics to measure effectiveness
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Key takeaways and recommendations

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
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Understand attraction and retention key
drivers
Address diverging employer and
employee views on those key drivers
Get the fundamentals in place
Achieve effective base pay and STI
delivery
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
Ensure understanding
Execute on differentiation
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Key takeaways and recommendations

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Heighten effectiveness of leadership
Build effective managers
Segment workforce and offer a
differentiated experience
Create a consumer like experience
Align reward and talent management
programs with company strategic
priorities
Focus on communication and change
management
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Appendix
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2014 Talent Management and Rewards and Global Workforce
Study Participation Information
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