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Strategy for Attracting and
Retaining Talent in a Low
Unemployment Rate: Compensation Design that
Balances Company Goals &
Industry Shifts
Guest Presenter: Mary MosquedaLockton Companies
TalentTakeawayswebinar & podcast series
AGENDAThe Series
TalentTakeawayswebinar & podcast series
Talent Takeaways Series
AGENDAAGENDA
Resource Library
Product Information
Product Tour & Demo
The Sponsor
Talent Takeaways Series
Compensation Management Made for Managers
AGENDAWebinar Info
Talent Takeaways Series
We are informal (and fun)
Ask Questions!
Q&A Session at end
HRCI & SHRM Credits
Slides will be available after
AGENDAAbout the Presenter
Talent Takeaways Series
Mary Mosqueda is the Practice Leader for Lockton
Companies Compensation Global Consulting Practice and
is an in-demand national speaker on total rewards and
compensation. With over two decades of experience in
compensation, human resources, and work/life programs,
she has been a key contributor in the strategic
development of public and private sector executive
compensation and total rewards programs that attract
and retain top talent. She assists clients with strategy,
design, funding, administration, and communication of
total rewards programs and incentive compensation
plans—including annual and sales programs, executive
and board compensation negotiation, total remuneration
for international and expatriate compensation, pay-for-
performance systems, and work/life programs.
Lockton Companies |
Competitive Total Rewards
Pay: special attention to range penetration
Benefits: choice and flexibility
Retirement: student loan repayment
PTO: paid volunteer hours, parental leave
Other Perks
Employee Survey: Conjoint Analysis
Career Development
Culture/Brand/Employee Experience
Agenda
6
Total Rewards:
Competitiveness in the Market?
Lockton Companies |
Process for Creating a Total Rewards Strategy
Employee
survey/Pulse on
employee
engagement
•Conjoint analysis
Total Rewards
market analysis
(published
survey data)
•Compensation, benefits, retirement, PTO
• (Other non cash benefits)
What is “Desired”
position in the
market
•At or near the 50th percentile
•Above the 50th percentile for certain
elements
•Key stakeholder meetings
Inventory rewards
not offered •Determine cost impact
Develop Total
Rewards strategy
and communicate
8
Lockton Companies |
Sample Current Total Rewards Program
Compensation
Benefits
Medical
Vision
Dental
HSA, FSA
Basic Life
Supplemental Life
Spousal/Domestic
Partnership
Dependent Child(ren) Life
Personal Accident
STD, LTD (Low and High
Option)
Voluntary Benefits
Tuition Reimbursement
401(k)
Student Loan Assistance
Workplace Experience
Growth and development
Communication
Recognition
Referral awards
Member discount programs
Flexible schedules/
telecommuting
Base salary
Variable pay
Annual
incentives
Pay for
performance
Sales
compensation
SERP (executive
only)
9
Lockton Companies |
Market Study
Business Needs
Sample Current Total Rewards Program
TOTAL
REWARDS
PROGRAM
Fixed payPerformance
management
Health and
welfare
Savings/
retirement
Time offLearning and
developmentWorklife
Variable
pay
Employee
needs
Business
needs
Employee
Needs
Total Rewards
Programs
10
Lockton Companies |
When was the last time you did a compensation study?
Is your pay competitive?
Where do you anchor pay when you think of the entire employee value proposition?
Does your salary structure accommodate hiring ranges and movement through the range?
Are you bringing in new talent and paying them for what they are worth?
1st quartile to midpoint?
Are you moving current talent through the range appropriately and paying them for their performance and proficiency
Range analysis
How are you using incentive compensation?
How far down does it go?
Eligibility and participation?
Are goals and metrics set appropriately?
Pay
11
Lockton Companies |
Are they competitive in the market and do they match the employee life cycle?
HSA with high deductible vs. PPO low deductible
Does wellness play a role in the benefit package?
On site clinic vs. programs
Point system to lower deductible
Does the system in place promote healthy behavior or are people just trying to get the points to lower the deductible?
Is wellness a part of the culture?
Does financial wellness mean something to your organization?
Offering choice and flexibility
Have you considered “personalizing” benefit options?
Would your organization sustain “choice and flexibility” in plan design?
Student loan repayment vs. 529 plan (in lieu of certain percentage of the match)
Paid time off plans: would you exchange 1% match for more time off?
Benefits/Retirement
12
Lockton Companies |
Is your paid time off competitive in the market?
PTO bucket vs. vacation, sick, personal days
Should you have a purchase or buy back program
Parental leave/sabbaticals/paid volunteer hours
Maternity vs. paternity
Paid vs. unpaid sabbaticals (does that fit for the culture and our industry?)
Millennial generation wants to do more for the community (paid volunteer
hours)
½ day Fridays (summer hours/all year?)
Paid Time Off
13
Lockton Companies |
Pet insurance
Additional $60–100 any perk/
wellness
Genetic testing
Culture/family friendly work
environment
Onsite childcare
Bring your pet to work
Unlimited paid time off
Extended parental leave (full-time
and part-time)
Gender reassignment surgery
Adoption/surrogacy/egg
freezing/fertility
Employee relief fund for national
disaster
Education benefits (Starbucks pays
for employees to go to AZ State FT
up through BA)
Loan reimbursements/loan debt
Sabbaticals
Employee discount programs
PTO benefits for part-time employees
Gym membership (Free up to $50 per
month)
Extended bereavement leave
Top Perks in Best Places to Work
14
Poll Question
Do you believe you offer appropriate benefits and perks that create
the proper choice and flexibility for your multigenerational work
force?
Employee Survey:
Conjoint Analysis
Lockton Companies |
Employee Total Rewards Survey Process
Determine type
of employee
survey
(conjoint or
traditional)
Finalize
questions and
develop online
tool
Download and
analyze data
Develop final report
with recommendation
17
Lockton Companies |
Assesses the importance employees assign to different features of a
total rewards package.
Employees are asked to compare two benefits packages and choose the
benefits package they most prefer.
Conjoint Survey—Overview
Total Rewards Package #1 Total Rewards Package #2
Compensation No base pay increase 2% base pay increase
Medical 10% increase in health care premiums 20% increase in health care premiums
Retirement 6% matching contribution 3% matching contribution
Paid Time Off Vacation buying program Unlimited PTO
Work Life Catered lunch 1x per week Paid gym membership
18
Lockton Companies |
Understand and cultivate a value proposition that speaks to the unique
preferences and needs of an organization workforce
Identify the benefits employees value the most and understand the
trade-offs they would make
Conjoint Survey—Outcome
21%
14%
12%
9% 9%
7%
0%
5%
10%
15%
20%
25%
Base Pay Increase 401(k) Match at
3%
Regular Healthcare
Premiums
Paid Time Off Bonus Gym Wellness
Reimbursement
+7%The largest delta between two features is from the
most important to second-most important.
19
Lockton Companies |
Conjoint analysis: Feature importance sample
21%
14%12%
9% 9%7% 6%
5% 5% 5% 4% 3%
0%
5%
10%
15%
20%
25%
+7%The biggest delta between two features is from most
important to second-most important
Base pay increase is 50% more important than the next
more important features
20
Lockton Companies |
Scores for each level can be used in an Excel-based simulation to model
expected satisfaction of potential total rewards packages
Conjoint Survey—Outcome
21
Career Development
Lockton Companies |
Do you have clear career paths for development and progression
Does your organization have a reimbursement program?
Does it pay for all or some?
Does it have to be related to your current or future job with the
organization?
Will you pay for certifications or management programs?
Does the organization have a “university” to help continued growth and
development of all employees at all levels of the organization?
In manufacturing: pay for progression?
Career Development
Lockton Companies |
Job Family/Career Level Example
Level Entry Level Mid Level Senior Level
Education and
Experience
• 0-2 years of related experience in an office
setting.
• Bachelor’s degree in business administration or
related field required.
• 3-4 years of experience in general or tax
accounting.
• Bachelor’s degree in business administration or
related field required.
• Certified Public Accountant (CPA) desirable
• 5+ years of accounting general or tax accounting
experience.
• Bachelor’s degree in business administration or
related field required.
• Certified Public Accountant (CPA) desirable.
Knowledge, Skills,
Abilities
• Proficient knowledge and understanding of
financial statements, banking activity and
financial reporting.
• Basic understanding of statistics and related
financial concepts.
• Comprehensive knowledge and
understanding of financial statements, banking
activity and financial reporting.
• Intermediate understanding of statistics and
related financial concepts.
• Advanced of financial statements, banking
activity and financial reporting.
• Advanced understanding of statistics and
related financial concepts.
• Intermediate computer skills within Outlook,
Word, Power Point, Excel, and Access Database.
• Intermediate problem solving and analytical
skills. Strong attention to detail.
• Ability to manage multiple priorities and
deadlines.
• Comprehensive knowledge and
understanding computer skills within Outlook,
Word, Power Point, Excel, and Access Database.
• Advanced problem solving and analytical skills.
Strong attention to detail.
• Advanced ability managing competing
priorities and deadlines. Leads moderately
complex resolutions.
• Advanced knowledge and understanding
computer skills within Outlook, Word, Power
Point, Excel, and Access Database.
• Expert problem solving and analytical skills.
Extreme attention to detail.
• Expert ability managing competing projects and
deadline. Leads complex resolutions.
• Intermediate quantitative modeling abilities. • Advanced quantitative modeling abilities. • Expert quantitative modeling abilities.
Client Interaction • Occasional interaction with external clients.
Typically in supporting role.
• Moderate interaction with external clients.
Serves in supporting role or lead role for less
complex assignments.
• Regular interaction with external clients. Serves
in lead role for complex assignments.
Scope of
Responsibility
• Performs routine daily tasks and standard
project work. May conducts analyses, create
presentations, research discrepancies and/or
writes copy for marketing materials.
• Performs both routine daily tasks and full
project work assignments. Conducts analyses,
create presentations, research discrepancies
and/or writes copy for marketing materials.
• Performs complex project work assignments and
some fulltime work. Conducts analyses, create
presentations, research discrepancies and/or
writes copy for marketing materials.
Lockton Companies |
Job Family/Career Level Example
Level Entry Level Mid Level Senior Level
Problem Solving/
Troubleshooting• Basic problem solving using standard practices
and procedures. Problems are solved with the next
highest level or guidance from a more experienced
associate.
• Problem solving becomes more advanced and
requires independence. Expected to resolve
most regular issues and develop standardized
solutions; new policy implementation requires
approval from supervisor or manager.
• Problem solving is complex and will likely
involve problems that are unique or highly
complex. Ability to use senior level expertise to
resolve complex issues. Will collaborate with other
internal and external resources to develop solution
and implement results.
Judgment/
Managerial Skills
• Prioritizes and executes tasks as assigned
accurately and efficiently.
• Prioritizes and executes multiple tasks and
assists in special projects.
• Leads priorities for the team and manages
workloads in lieu of the Supervisor.
• Prioritizes and executes multiple tasks and multiple
special projects.
Decision Making • Decision making is based on internal and
standardized policies, guidelines and procedures.
• Decision making setting priorities and collaborating
with internal and external resources when
necessary. Identifies critical issues and escalates
to higher levels, as appropriate.
• Independent judgment is exercised to identify
and apply appropriate procedures and/or approach
solutions in addition to using internal policies,
guidelines, and procedures as necessary.
Decision Making
Authority
• Independent decisions are made based on
standard policies and practices. Must obtain
approval from immediate supervisor for non-
routine decisions.
• Independent decisions are made based on
standard policies and practices. May develop own
solutions for non-routine issues, but must obtain
approval from immediate supervisor prior to
implementation.
• Exercises independence and latitude in
making decisions using standard policies, practices
and personal experience. Collaborates with
management on complex or non-routine decisions.
Decision Making
Examples
• Examples of Decisions Include:
Example 1
Example 2
Example 3
• Examples of Decisions Include:
Example 1
Example 2
Example 3
• Examples of Decisions include:
Example 1
Example 2
Example 3
Supervision • Work is directly supervised – receives
instruction, guidance, and direction from others
• Work is moderately supervised and directed –
work is reviewed at critical points for soundness,
judgment and overall accuracy.
• Little to no supervision – works independently,
using solid independent judgment, and receives
minimal guidance.
Poll Question
Do you have defined career paths in your organization by job family?
Creating a Culture and Brand
Lockton Companies |
How would you describe your culture?
Paternalistic
Inclusive
Collaborative
Reinforces the values of the organization
What the company “stands for” is very important to millennials
Where is the organization in their life cycle?
Transformative
Stagnate
High growth
How does your culture come across to the organization?
Positive
Negative
Needs changing/updating/enhancing
Merge/acquisition (unsteady)
Culture
Lockton Companies |
Do you have a brand that people want to work for?
How would you describe your brand?
Is the brand known? (if not is the culture known?)
How does Glassdoor describe your organization?
What does social media have to say about you?
What is the “image” you are trying to present?
How are you communicating your brand?
Social media
Word of mouth (referrals from employees?)
Are we cultivating the brand and communicating to employees?
Brand
Lockton Companies |
Employee Experience
Lockton Companies |
It’s all touchpoints of an employee’s time with the organization
Starts with exceptional onboarding and then extends throughout the
employee life cycle
Employee needs to “feel”:
Welcomed
Basic needs are met
Needed and appreciated
Physical workspace is efficient and “fun”
Technology that is superior
Corporate culture “fits” their personality
Employee Experience
AGENDAQ & A
Talent Takeaways Series
Live Q&A
AGENDAAGENDAResources & Support
Talent Takeaways Series
Resource Library
Product Information
Product Tour & Demo
HRsoft.com
RISK MANAGEMENT • EMPLOYEE BENEFITS • RETIREMENT SERVICES
Our Mission | To be the worldwide value and service leader in insurance brokerage,
risk management, employee benefits and retirement services
Our Goal | To be the best place to do business and to work
© 2018 Lockton, Inc. All rights reserved.
LOCKTON.COM