Approaches to Rewarding Digital Talent Break-out · Digitally-enabled organisations Non-digitally enabled organisations Employees with defined knowledge / skills 50% 18% Employees

willistowerswatson.com

Approaches

to Rewarding

Digital Talent

– Break-out

1


Organisations are in very different places in their Digital Journey

2© 2018 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only.

We’re just

starting out

13%

We’ve made

progress in some

areas of the

business

40%

We don’t have a

strategy for

becoming

digitally enabled

20%

We’re fully

digitally

enabled

6%22%

We’re on the

way to

becoming full

digitally enabled

Source: WTW Digital Pulse Survey 2018

willistowerswatson.com 3© 2018 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only.

Digitally enabled organisations define Digital Talent in a different way

Digitally-enabled

organisations

Non-digitally enabled

organisations

Employees with defined

knowledge / skills50% 18%

Employees in defined roles 5% 36%

Employees in defined

functions / job families16% 9%

All employees 18% 0%

Other 0% 18%

Source: Willis Towers Watson – Digital Pulse Survey 2018

3


Organisations recognise a traditional approach may not be

enough to attract scarce Digital Talent into the organisations

© 2018 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 4

The

organisation

is not a

recognizable

digital brand

We require

specialist

skills that are

hard

to find

The industry

we operate in

is not known

for being

innovative or

transformative

Our culture

is perceived

as

‘traditional'

rather than

digital/transf

ormative

Top 4 challenges in

attractingdigital talent

1 2 3 4

Highly digitally enabled

organisations

Non-digitally enabled

(or just starting out)


The lack of an effective Career path is clearly the main reason

given for a failure to retain digital talent on organisations


No

established

career path

Culture is

perceived as

“traditional”

rather than

digital/transfo

rmative

We do not

pay

enough

We do not

have a well-

defined

digital

strategy

Top 4 challenges in

retainingdigital talent

1 2 3 4


The 4 big challenges to attracting and retaining Digital Talent


No

established

career path

Perceptions

of Culture,

Brand or

Industry

We do

not pay

enough

1

2

3

4

Skills

shortages


Most companies may only be addressing one of the main

retention challenges and none of the attraction challenges

© 2018 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only.

Do you (plan to) manage and / or

reward digital talent differently?

Have Plan to have

Enhanced levels of base pay 34% 20%

Manage as a separate job family 17% 15%

More flexible working patterns 15% 8%

Alternative working location 14% 10%

Enhanced development opportunities 6% 11%

Different mix of fixed to variable pay 5% 8%

Innovative / quirky perks 5% 2%

Different incentive plans 3% 10%

Different benefits 2% 2%

Different performance management approach 0% 10%

7


© 2018 Willis Towers Watson. All rights reserved.

Pay

8


4855

50 49

5852 51

45 48 50 50N

atio

nal

Agi

le

Ap

p D

eve

lop

men

t

Big

Dat

a

Clo

ud

Cyb

erse

curi

ty

Dat

abas

e

Dig

ital

Mar

keti

ng

Dig

ital

Str

ate

gy

e-C

om

mer

ce

SAP

/ER

P

Professional (P3)

Only certain skillsets attract a market premium – professional roles (although

some premiums are hidden)

Digital and Technical Skillsets vs. National Market


Source: 2017 High Tech Compensation Survey – United Kingdom, data shown in ,000’s

9


6267 66

60 6367 70

63 65 68

78

Nat

ion

al

Agi

le

Ap

p D

eve

lop

men

t

Big

Dat

a

Clo

ud

Cyb

erse

curi

ty

Dat

abas

e

Dig

ital

Mar

keti

ng

Dig

ital

Str

ate

gy

e-C

om

mer

ce

SAP

/ER

P

Management (M2)

Only certain skillsets attract a market premium – managerial roles

Digital and Technical Skillsets vs. National Market


Source: 2017 High Tech Compensation Survey – United Kingdom, data shown in ,000’s

10


Not all ‘digital’ roles attract a premium…

Digital Disciplines vs Generalists – Professional Career Level (P3)


47,800 45,000 45,000 47,70052,400

46,500 47,300

Total Guaranteed Compensation Target Total Variable Pay

Mark

eting

Genera

list

Dig

ital

Mark

eting

Pro

ject

Manag

em

ent

Dig

ital C

onte

nt

Pro

ject

Manag

em

ent

Str

ate

gic

Pla

nnin

g

Dig

ital

Str

ate

gy

P3

Source: 2017 All Companies All Sectors Compensation Survey – United Kingdom

10%

Premium Compared to National overall reference in violet

-1%-6%

11


57,600 62,200 58,600 57,800 63,500 61,40069,400


…however we do start to see premiums for these skills at managerial level.

Digital Disciplines vs Generalists – Manager Career Level (M2)



Mark

eting

Genera

list

Dig

ital

Mark

eting

Pro

ject

Manag

em

ent

Dig

ital C

onte

nt

Pro

ject

Manag

em

ent

Str

ate

gic

Pla

nnin

g

Dig

ital

Str

ate

gy

M2

10%


20%2%

12


Some roles with certain technical skillsets attract a bigger premium…

Digital Disciplines vs Generalists – Professional Career Level (P3)


47,800 49,20058,400

52,00062,600

57,500 52,900 55,100 54,100 57,800



22% 31%


11% 21%13%

P3D

ata

base

De

sig

n

and A

naly

sis

Data

Scie

nce

IT D

evelo

pm

en

t

Ge

ne

ralis

t

E-C

om

merc

e

Arc

hitectu

re

Technolo

gy/S

yste

ms

Consultin

g

IS a

nd C

ybers

ecurity

Consultin

g

Softw

are

Develo

pm

en

t

Genera

list

User

Inte

rface

User

Experience

13


47,80055,100 54,100 57,800

73,900

58,700


… and Mobile Software Applications roles attract the biggest premium

Hot skills in Technology vs Software Development – Professional Career Level (P3)



Softw

are

Develo

pm

en

t

Genera

list

User

Inte

rface

Desig

n

User

Experie

nce

Mob

ile S

oftw

are

App

s

Clo

ud C

om

puting

Arc

hitectu

reP3

55%23%13% 21%

14


What companies are doing to attract and retain digital talent beyond base?


Paying above

median

1

3

2

Source: 2017 IT Skills Matter now! Pulse Survey – Western Europe Report

• 56% of organisations

have a reward strategy that

pays upper quartile for

certain roles

Sign-on bonuses

• 46% of organisations offer

some type of sign-on bonus for

highly skilled roles, typically 1 to 1.5

times a monthly salary

Referral Incentives

• 60% of organisations offer

some form of referral incentives

• Lump sum amounts

(1,000€-2,500€)

• Credit for products

• Gift cards

4

Equity buy-outs


How to reward contingent / gig talent?


Payment by milestone

Early delivery bonuses

Work quality based

Retention / repeat bonuses

Cash most prevalent

Skillsets based



Career path and

skills shortages

17

To effectively manage digital careers and address skills shortages organisations must

change the way they think about getting work done


A greater emphasis on Skills and Knowledge and less on traditional job families


What does the job

architecture look

like? How is it

structured, stored

and used?

What knowledge

information is

available? How is it

structured, sourced,

stored, assessed

and used?

How and where

does job and

knowledge

information come

together?

willistowerswatson.com20

Talent platforms

Traditional employees

Outsourcing

Robotics Artificial Intelligence

Free agents

Volunteers

Alliances

Jobs are changing as

technology enables work

to be fragmented into

discrete tasks that can be

performed more efficiently

and effectively

Changing demographics

as millennials enter the

workforce and have

different expectations of

workplace and how work

gets done

Skills shortages may be addressed via alternative approaches

to employment




Addressing

perceptions of

industry, culture

and brand

21

Aviva: Public 22

Andrew Pooley, UK Reward Director, Aviva

Aviva Digital

Willis Towers Watson GB Reward Network

23Aviva: Public

About Aviva

“We want to become a 322 year old disruptor”

• Over 750 companies have contributed to our heritage since 1696

• Provide a wide range of insurance and savings products to help people what’s important to

them and save for a comfortable future

• 33 million customers globally

• Every year we pay our customers over £34.6 billion in claims and benefits

• c.30,000 employees globally

• UK’s largest insurer and we also have a strong international presence in Europe,

Canada and Asia

• Traditionally

– Life Insurance

– General Insurance

– Savings & Investments

• Composite insurer with a digital future

24Aviva: Public

Aviva’s Strategy

True Customer Composite

• We can provide customers with life, general, accident and health insurance and asset

management – a True Customer Composite. This is what sets us apart. We are the only

composite insurer of scale in the UK.

Digital First

• We put Digital First. This is how we will capitalise on the breadth of what we can offer

customers. With their busy lives, customers are increasingly turning to digital to make things

more convenient, easier and quicker.

Not Everywhere

• We focus our resources where we can be most competitive. We will focus on a select number of

markets and business lines where we have scale and profitability or a distinct competitive

advantage – where we can win.

Aviva: Public 25

“Creating a simple and rewarding insurance and savings experience”

Aviva Digital

Aviva: Public 26

Clear digital strategy and vision

Outstanding

customer

experience

More and

deeper

customer

relationshipsLeading

composite

propositions

Culture,

Capabilities,

Execution

27Aviva: Public

Aviva Digital

“Creating a simple and rewarding insurance and savings experience”

• Different skillsets

– Digital Product Design

– Customer Experience / UX

– Digital Technology

– Innovation Expertise

• Different ways of working

– Ruthless Prioritisation

– Build Fast

– Agile in Everything We Do

• Different Mindsets

– Diversity of thought & background

– Not recognising organisational boundaries

Aviva: Public

Digital business units

UK Digital France Poland Canada Asia

Digital product

& designData Science Digital Marketing

Digital

engineeringInnovation

World-class digital capabilities

Aviva: Public

Aviva Digital Garage

29

30Aviva: Public

Aviva: Internal

More

satisfied 22

xmore

valuabl

e

7

x

Engage

digitally 1

Stay

longer 4

Lower cost to

serve 5

Buy

more

3

+3

8pts

50%

1. MyAvia average log in per annum

2. NPS MyAviva vs. non MyAviva customers

3. Propensity to buy additional product in next 12 months vs non MyAviva

customers

4. 50% more MyAviva GI customers with us after three years

5. Digital share of Direct interactions

6

x

MyAviva

customers

…

40%

32Aviva: Public

Aviva Digital

Attraction Challenges

• Different set of skills and ways of working

• Employer Brand

• Competition

• Industry is contractor heavy

Reward related

• Stock expectation

• Buyouts

• Relocation & Mobility

• Grading Structure?

33Aviva: Public

Aviva Digital

Retention Challenges

• Cultural Integration

• Getting things done – i.e. “You’d never build it like this” -

• Systems & Tech challenges

• Experience and expectation of employees in a digital age

– Recognition & development opportunities

• Highly Regulated industry & need for good governance

• Market “Hotspots”

• Expectation of more innovative reward practices

34Aviva: Public

Aviva Digital

Addressing the Attraction & Retention Challenges

• Education & induction

• “Selling the vision”

• Use of non traditional recruitment channels – informal networks etc

• Adopting and embedding different ways of working into the business

• “Resource Fluidity”

• Flexible reward & “job family” framework

• Creating communities across Aviva – e.g. “Quantum”

• Broader review of performance culture & how pay supports it

Aviva: Public

Questions?

35

Aviva: Public 36

Thank you

Documents

Approaches to Rewarding Digital Talent Break-out · Digitally-enabled organisations Non-digitally enabled organisations Employees with defined knowledge / skills 50% 18% Employees