2017 Compensation as an Engagement Tool - Connecticut Business, Industry, Economy, HR ... · 2018-03-27 · In early 2016, Mayor Denise Simmons convened a Committee on Women’s Equal

3/26/2018

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© 2017 ARTHUR J. GALLAGHER & CO. | AJG.COM

2017 Compensation as an

Engagement Tool


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2017 BEST-IN-CLASS BENCHMARKING ANALYSIS FOR MIDSIZE EMPLOYERS

• Tax Reform

• Strategic Priorities

• Internal & External Benchmarking

• Employee Engagement

• Compensation

– Pay transparency & pay equity

• Strategies and Opportunities

Agenda

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IMPACT OF TAX REFORM

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• 66% are planning or considering changes to benefits

programs

• 26% increasing 401k contributions

• 34% expanding financial planning

• 64% are considering changes to compensation programs

• 36% addressing gender-pay gap issues

• 21% introducing profit sharing or one-time bonus

Tax Cuts and Job Act (TCJA):Impact and Developments

Human Capital Investment

Source: World at Work/Towers Watson

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Not all organizations will benefit from TCJA

• 25% to 30% of organizations will not benefit

• Organizations are being thoughtful about changes

• Focus is on investments that deliver most value to the employees

• Employee Communication is key

• Organizations are being guided by data


Human Capital Investment


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Workforce

Evaluation

• Examines the underlying trends that affect the overall human capital strategy• Key areas of application include:

• Rationalizing/Managing spend on compensation and benefits• Enhancing the employee value proposition


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Workforce

Evaluation

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Workforce

Evaluation


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Becoming a Destination Employer

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Gallagher Strategy & Benefits Surveys


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Aligned operational and HR prioritiesMake the most of human capital investments and

drive business growth

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Movement toward a multi-year strategy


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Best-in-Class Midsize Employer:Healthcare Cost Control

Prioritizing Culture, Wellbeing, Engagement and

Productivity

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Best-in-Class Midsize Employer:Human Resource Management

Strategically Addressing Employee Engagement

and Supporting Communications


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Best-in-Class employers are achieving success through:

• Approaching compensation and benefits spending as an

investment in driving human capital performance and

achieving business outcomes

• Balanced benefit, compensation and training mix

• Commitment to employee engagement and communication

• Wellness program offerings that include elements addressing

physical, emotional and community aspects of health

Best-in-Class Midsize Employer:Human Resource Management

Profile Group Summary

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EMPLOYEE ENGAGEMENT

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Employers report a highly motivated,

satisfied and committed workforce

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Engagement is closely linked to employee

retention and attraction


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For most employers, successful

engagement is perceived, not measured

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Engagement and Burnout

OPTIMALLY ENGAGED

• 2 out of 5 employees

report high engagement

and low burnout

ENGAGED EXHAUSTED

• 1 out of 5 employees

report high engagement

and high burnout

• High levels of positive

outcomes

• Low levels of negative

outcomes

• Intensely mixed feelings

• High levels of stress and

frustration

• Highest turnover

intentions (higher than the

unengaged group)

Source: Harvard Business Review – Yale Center for Emotional Intelligence


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COMPENSATION

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43% of Employers expect to spend more time on Pay Equity in the

coming year


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White House Equal Pay

Pledge

Accenture, Airbnb, Amazon, American Airlines, BCG,

Buffer, Care.com, CEB, Cisco, Coca-Cola Company,

CVS Health, Deloitte, Delta Airlines, the Dow Chemical

Company, Dropbox, Dunkin’ Brands, Expedia, EY,

Facebook, Gap Inc., General Motors, Glassdoor,

GoDaddy, The Hartford, Hershey Company, Hilton, IBM,

IKEA, Intel, Jet.com, Johnson & Johnson, Libra Group,

LinkedIn, L’Oréal USA, MailChimp, Microsoft, Mulesoft,

Nike, Patagonia, PepsiCo, Pinterest, Popcorn Heaven,

PwC, Rebecca Minkoff, Salesforce, Slack, Spotify,

Staples, Stella McCartney, Target, Unilever, Visa

We encourage workers

everywhere to anonymously

share their pay on Glassdoor to

help others better understand

what is fair and equitable

compensation for specific jobs

at specific companies.

Pay Equity in the News

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Pay Equity & The Trump

Administration

• President Trump has said he supports

equal pay for women. Ivanka Trump also

says she is a big equal pay advocate.

• EEO-1 Pay Data Reporting eliminated

• “Blue States” expect less federal

enforcement, so they are taking up the

pay equity torch.

• Will Tax Reform have an impact on pay

equity?


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Pay Equity – State Legislative Action

• Several States have passed new Pay Equity laws: Massachusetts,

Oregon, Washington, New York, Maryland, California.

• New Jersey is expected to pass legislation this year

• Approximately 19 other State have bills winding their way thru the

legislative process.

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Boston Women’s Workforce Council 100% Talent

Compact

• 200+ Companies have signed the

compact

• Employers commit to anonymously

report employee pay data biennially

• 2017 report captured data for 16% of

the Greater Boston workforce


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In early 2016, Mayor Denise Simmons convened a Committee on Women’s Equal Pay -

a group of local political, business, academic and non-profit leaders to help determine

how the City of Cambridge could best address gender wage disparities in the City.

Two important initiatives Early Adopters of Equal Pay Initiative, and Pay Equity

Dashboard

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Pay EquityCambridge: Early Adopters of Equal Pay

Initiative• Bookkeeping Plus More

• Bon Me Foods

• Cambridge Economic Opportunity

Committee, Inc.

• Cambridge- Ellis School

• Cambridge Housing Authority

• Cambridge Naturals

• Cambridge Trust Company

• Eastern Bank

• Enroot Education

• Flour Bakery + Cafe

• Food for Free Committee, Inc.

• GQS Management Inc.

• Harvard Book Store

• Harvard Square Business Association

• Hildebrand Family Self-Help Center, Inc.

• Irving House at Harvard & Harding

• LDa Architecture & Interiors, LLP

• Middle East Restaurant & Nightclub

• Miller-Havens Art

• Nickerson People Relations LLC

• Porter Square Books

• Salt & Olive

• The BigSkinny

• The Dance Complex

• The Williams Agency

• TrademarkR Tours

• Transition House

• Trinity Property Management

• Union of Concerned Scientists

• Windsor House Adult Day

Healthcare Center

• YWCA Cambridge

• Za & EVOO Restaurants

• Zinneken’s


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Pay Equity in the News

© 2017 Gallagher Benefit Services,

Inc. Arthur J. Gallagher

& Co. | Business

Without Barriers®

Uber woos employees with pay equity and salary bumps

• DOL found “Systemic Compensation Disparities pretty much

across the entire workforce”

• “…discrimination against women in Google is quite extreme…”

As a result of a lawsuit, Farmers agreed to pay $4 million to approximately 300 female attorneys, as well as conduct annual analyses of its pay practices, increase salary transparency and increase the representation of women in higher salary grades

“Salesforce sets the bar for women working in tech, and it

just keeps getting better”

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• Fearless Girl statue was installed on Wall Street to promote a new ETF that invests in businesses focused on gender diversity.

• Bloomberg found that the company agreed to two out of 11 shareholder proposals related to gender pay in 2017

• DOL audit found an issue of pay disparity where women were paid less than their male co-workers

• State Street agreed to pay a $5 million dollar settlement to more than 300 high-level female employees


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Pay Transparency

“The idea of open pay

is to get pay and

performance problems

out on the table for

discussion, eliminate

salary inequities and

spark better

performance”

• 59% of workers check salary market rates online

using sites such as Glassdoor, Salary.com,

Payscale

• Employees born after 1980 tend to be more open

and share pay information.

(Source; Robert Half International)

Nearly half of US workers reported they

were either "contractually forbidden or

strongly discouraged" from discussing

pay with coworkers.Source: 2010 survey by the Institute for Women’s Policy Research

revealed

In 1986,

Wholefoods

made

compensation

data available

to all

employees

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Pay Equity and Employee

Engagement

• Recent Gallagher studies have found that employees paid

less than other employees in their same position assign a

lower favorability to key engagement drivers.

• When pay is perceived as unfair/unfavorable, it creates a

barrier to people being favorable about the drivers of

engagement

• Without EQUITY, even in the best circumstances, it is

difficult for engagement to emerge


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Source: Mercer

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Engagement

• High performing organizations understand that Pay

Equity is fundamental to reward strategy.

• These organizations understand that you don’t sit on

pay disparities if you find them.

• You have to take reasonable action to remedy bona

fide pay inequities once found.


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Engagement

• High performing organizations understand that Pay

Equity is fundamental to reward strategy.

• These organizations understand that you don’t sit on

pay disparities if you find them.

• You have to take reasonable action to remedy bona

fide pay inequities once found.

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Pay Equity and Becoming a Destination Employer

How can

addressing Pay

Equity Impact

your value

proposition?


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Business success is a function of the people you employ and how

engaged they are with your organization

Develop broad, integrated strategies that help employees become more engaged and thrive at work, at home and in their community

Wellbeing & Engagement

Integrated Strategies

Position wellbeing & engagement as a broad organizational solution that strengthens your employer value proposition to become a destination employer

Organizational in Scope


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The WHOLE person comes to work every day....

each employee’s wellbeing influences

individual and organizational performance

&

Dimensions of Wellbeing

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Garry Straker

Tel. 860 280 6333

E-mail: [email protected]

Thank You!

100 Northfield Drive

Windsor, CT 06095

Documents

2017 Compensation as an Engagement Tool - Connecticut Business, Industry, Economy, HR ... · 2018-03-27 · In early 2016, Mayor Denise Simmons convened a Committee on Women’s Equal