Embed Size (px)
Citation preview
The Future of Reward
A Journey to 2022
Martin HopkinsSARA Conference 2015
www.pwc.com
PwC
Agenda
• The Three Worlds of Work
• Reward in the Three Worlds
• The Female Millenial – a new Era of Talent
• Interviews with SARA Intern Programme graduates
2
November 2015The Future of Reward
PwC
The Future of Reward – A Journey to 2022
This presentation is based on global research performed by PwC focusing on “The Future of Work” 1 and “The Female Millennial” 2, customized for South Africa, and focusing on the Reward elements of Work in South Africa in 2022.
We have focused on the consequences for the total reward model in these future worlds, and discuss the appropriate emphasis on reward elements – for example, base pay, benefits, incentives, personal and corporate societal impact, work-life balance, recognition and development. In particular we have gathered the views of younger members of the workforce, including female millennials in South Africa to inform our observations.
1 The Future of Work – A Journey to 2022, PwC, August 2014
2 The Female Millennial – A New Era of Talent, PwC, February 2015
The Future of Reward
3
November 2015
PwC
The world in 2022… ?
The Future of Reward
4
November 2015
PwC
The Future of Reward
5
November 2015
PwC
The Future of Reward
6
November 2015
PwC
Opinions …
The Future of Reward
7
November 2015
PwC
The Future of Reward
8
November 2015
PwC
Reward in the “Blue world”
The Future of Reward
9
November 2015
Conventional pay mix of salary, benefits, short- and long- term incentives,
Access to the pensions, health and other benefits that their host societies may not provide or be scaling back.
Highly structured and detailed performance management,
Scientific pay evolution models based on psychometrically assessed talent and competencies, performance, roles and market positioning,
Substantial short-term incentives based on performance assessments,
Significant share awards to senior roles, high performance and potential staff, with corporate performance vesting conditions.
“Cradle-to-Grave” workforce planning, training and development, career path and retirement benefits,
PwC
The Future of Reward
10
November 2015
PwC
Reward in the “Green world”
The Future of Reward
11
November 2015
Base pay and benefits be the most significant pay element,
More modest performance based pay,
Performance management will be more qualitative, relationship and behaviourally based. Non-financial, sustainability metrics will have a higher weighting.
The employee value proposition will be focussed on the positive impact that the company has on the environment and community and the impact that individuals can make,
Restricted shares will form the main component of long term incentives.
PwC
The Future of Reward
12
November 2015
PwC
Reward in the “Orange world”
13
November 2015
Flexible, contractual and entrepreneurial reward models will prevail,
Remuneration will be on a cash basis and individuals will look after their own benefits, such as retirement funding and medical aid.
Conventional variable pay will be replaced by contractual incentives, partnership models and holding shares or other interests in private companies and ventures.
Performance management will be an outcome basis, driving payment on an invoice basis for time, deliverables and quality.
Flexible work arrangements, to work when and where people wish, will be an important part of the employee value proposition.
PwC
The Female Millennial – A New Era of Talent
The Future of Reward
14
November 2015
PwC
Reward for Female Millennials
The Future of Reward
15
November 2015
PwC
Millenials’ views on the Future of RewardInterviews with SARA Intern Graduates
The graduates of the SARA Reward Programme provide an ideal opportunity to gauge the views of a group of Millenials who understand Reward, but may have a fresh perspective on the future of Reward. I interviewed the following programme graduates:
• Musa Masingi
• Nkagisang Moroka
• Leila Ebrahimi
• Yoliswa Mboqoli
16
November 2015The Future of Reward
PwC
Interview with SARA Intern Programme graduate – Ngakisang Moroka
… Separate video of interview
The Future of Reward
17
November 2015
PwC
Interview with SARA Intern Programme graduate – Musa Masingi
… Separate video of interview
The Future of Reward
18
November 2015
PwC
Interview with SARA Intern Programme graduate – Yoliswa Mboqoli
… Separate video of interview
The Future of Reward
19
November 2015
The Future of Reward may be very different to its past ...
“The information contained in this publication by PwC is provided for discussion purposes only
and is intended to provide the reader or his/her entity with general information of interest. The
information is supplied on an “as is” basis and has not been compiled to meet the reader’s or
his/her entity’s individual requirements. It is the reader’s responsibility to satisfy him or her that
the content meets the individual or his/ her entity’s requirements. The information should not
be regarded as professional or legal advice or the official opinion of PwC. No action should be
taken on the strength of the information without obtaining professional advice. Although PwC
take all reasonable steps to ensure the quality and accuracy of the information, accuracy is not
guaranteed. PwC, shall not be liable for any damage, loss or liability of any nature incurred
directly or indirectly by whomever and resulting from any cause in connection with the
information contained herein.”
© PwC Inc. [Registration number 1998/012055/21](“PwC”). All rights reserved. PwC refers to
the South African member firm, and may sometimes refer to the PwC network. Each member
firm is a separate legal entity. Please see www.pwc.co.za for further details.
