The Importance of Total Rewards from an

HR Executive perspective

Hennie Dippenaar

October 2013

WORLDATWORK TOTAL REWARDS MODEL

THE ELEMENTS OF TOTAL REWARDS

Benefits

Compensation

Work-Life

Performance and Recognition

Development and Career Opportunities

WHAT DOES THE RESEARCH SAY?

• “It goes beyond standard remuneration by embracing the company culture, and is aimed at giving all employees a voice in the operation, with the employer in return receiving an engaged employee performance. In other words, total reward provides a broader view to treat everything that an enterprise can offer to its staff and everything that the employees can promise to their companies.”

• “The silos within Human Resource Functions need to be bridged”

• “The problem is that firms do not always introduce HRM techniques in an institutionally supported and coherent package, but in an ad-hoc fashion and piecemeal manner.”

• “The way an organisation manages its HR has a significant relationship with the organisation’s results”

• “In a world in which financial results are measured, a failure to measure HR policy and practice implementation dooms this to second class status.”

• “Performance-Driven Compensation: The Corporate Talent Insurance Policy”

What do CEOs worry about?(% CEO respondents)

56

43

4138

29

29

9

Insufficient talent within the organisation as a whole

Insufficient leadership talent

Lack of alignment of individual and business objectives

Low employee satisfaction Poor decisions

related to global sourcing

HR costs

Low level of diversity

Source : Economist Intelligence Unit survey, May 2012

Some of my key learnings

How clear, simple and understood is our HR Strategy? Does it really support the key business issues?

We have a vital role to play – some great successes!

How integrated do we work as an HR Function?

How well are we trusted by others?

How would they rate our creativity and pragmatism combined with good governance to find solutions?

“A significant proportion of respondents believe that their heads of HR are

overly preoccupied with a narrow HR agenda. Forty-one percent think their

HR heads are “too focused on processes and rules” and 37% say that they don’t “understand the business well enough”. “If heads of HR see the corporate strategy only through the

lens of their specialism, most CEOs will find this irritating”

The Economist

Some of the challenges for the Reward Community

Closer link to managing talent in the organisation/all the challenges we face.

Being pro-active and providing creative solutions in managing employee costs (Example International Assignees, Post

Retirement Healthcare liability)

Variable pay and the link to productivity and company performance.

Major progress, BUT open the black box – Support employees to really

understand their compensation and the Total Rewards Model.

Some of the challenges for the Reward Community

Continue with debate about Performance Management. (And continue to provide solutions!)

Communication, communication

How can you better understand the Structure of Interpretation of

your line colleagues?

Do we follow the same recipe vsreally thinking out of the box?

Governance, without becoming auditors!

Areas of excellenceHR does a good job of… (% CEO respondents)

67

65

5857

53

50

34

Leading the HR function

Evaluating employee performance

Understanding the HR needs of the business

Managing benefit and compensation costs Creating a culture

that values excellent performance

Succession planning

Global sourcing decisions

Source : Economist Intelligence Unit survey, May 2012

67

42

Identifying and recruiting key talent

Developing key talent

I believe there are numerous potential trim-tabbers in every organisation- who can lead and spread their influence no matter what

position they hold. They can move themselves and their team or department in such a way that it positively affects the entire

organisation.

Stephen Covey

That is our role and we can do it!!