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Employee Benefits Live 2015: Global reward - strategy or principles

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Slides from my session at the 2015 Employee Benefits Live event in London.

How to develop a global reward strategy while retaining local flexibility
- Creating a global benefits strategy with space for differences in local application
- Striking a balance between global efficiency and local agility
- Global versus local approaches to benefits strategies

Published in: Recruiting & HR
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Employee Benefits Live 2015: Global reward - strategy or principles

  1. 1. Global reward Strategy or principles?
  2. 2. • Executive pay review • Executive STIP and LTIP • Incentive principles • Salary review principles • Benchmark data procurement What we manage globally…
  3. 3. What we manage locally • Benefits design • Benefits procurement • Non-executive STIP • Salary review budgets and distribution • Recognition programmes
  4. 4. A global reward strategy: should we?
  5. 5. . Considerations for programmes Government considerations Regulatory considerations Cultural considerations Internal framework
  6. 6. Gender pay gap: in force March 2016 Government considerations UK government require companies with 250 or more employees to report on the gender pay gap
  7. 7. Regulatory considerations Country Advisory vote on the remuneration report Binding vote on future remuneration policy Binding vote on director remuneration Vote on share- based incentive plans Japan  For companies with an audit and supervisory board  Option plans only UK   At least every 3 years  USA   Australia   Changes only  France  For companies voluntarily complying with the local code  Changes only  When for board members Italy  Binding for financial institutions only   Germany  Changes only  Switzerland No but policy should be described  Netherlands  Changes only   Shareholder votes: say on pay
  8. 8. Market expectations Cultural considerations 32% 42% 30% 33% 37% 31% 27% 27% 24% 31% 34% 10% 41% 7% 14% 5% 4% 8% 3% 5% 9% 1% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Average US Average WoW UK Germany France Italy Spain Australia Singapore China % of base salary STIP LTIP
  9. 9. Cultural inconsistencies? Cultural considerations Perfrormance score China Singapore Australia Spain Italy France Germany UK Group (UK) US 1 0% 0% 0% 0% 20% 0% 4% 0% 0% 0% 2 30% 8% 0% 7% 0% 17% 13% 6% 8% 7% 3 10% 25% 56% 64% 20% 55% 73% 53% 52% 39% 4 60% 67% 44% 29% 20% 28% 10% 37% 30% 43% 5 0% 0% 0% 0% 40% 0% 0% 4% 10% 11%
  10. 10. Requirements for consistency Internal framework Global Mature vs. emerging Multiple zones Local Typical approach One global approach consistent across all regions and markets 2 zones 3-5 zones Defined for each country / market Geographic zoning Mature and emerging markets North America, Europe and Australia, emerging markets etc. Market zoning Key business and new ventures Multiple business activities
  11. 11. Globalisation and convergence
  12. 12. 100 million users
  13. 13. Nationalism and protectionism
  14. 14. Think global act local?
  15. 15. • Budget and affordability • In line with market activity and affordability • In line with local legislation • Market legal requirements • Overall affordability • Global principles Global consideration Local flexibility Global with local flexibility: salary review
  16. 16. • Regulatory requirements • Perceived value or market worth • Income tax / social security benefits • Availability of benefits or suppliers • Core requirements • EVP / brand supporting requirements • Global employees / nomads / 3rd country nationals Global consideration Local flexibility Global with local flexibility: benefits design
  17. 17. • Local message • Key messages from a more visible line leader • More opportunity to use local teams as part of the communications cascade • Key message • Feeling of being part of something bigger Global consideration Local flexibility Global with local flexibility: communication
  18. 18. Digital disruption
  19. 19. Keep it social
  20. 20. Bespoke engagement
  21. 21. @richardbeeby

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