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Organisations are in very different places in their Digital Journey
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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
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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
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Organisations recognise a traditional approach may not be
enough to attract scarce Digital Talent into the organisations
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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)
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The lack of an effective Career path is clearly the main reason
given for a failure to retain digital talent on organisations
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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
willistowerswatson.com
The 4 big challenges to attracting and retaining Digital Talent
© 2018 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 6
No
established
career path
Perceptions
of Culture,
Brand or
Industry
We do
not pay
enough
1
2
3
4
Skills
shortages
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Most companies may only be addressing one of the main
retention challenges and none of the attraction challenges
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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
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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
© 2017 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only.
Source: 2017 High Tech Compensation Survey – United Kingdom, data shown in ,000’s
9
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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
© 2017 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only.
Source: 2017 High Tech Compensation Survey – United Kingdom, data shown in ,000’s
10
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Not all ‘digital’ roles attract a premium…
Digital Disciplines vs Generalists – Professional Career Level (P3)
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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
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57,600 62,200 58,600 57,800 63,500 61,40069,400
Total Guaranteed Compensation Target Total Variable Pay
…however we do start to see premiums for these skills at managerial level.
Digital Disciplines vs Generalists – Manager Career Level (M2)
© 2018 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only.
Source: 2017 All Companies All Sectors Compensation Survey – United Kingdom
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%
Premium Compared to National overall reference in violet
20%2%
12
willistowerswatson.com
Some roles with certain technical skillsets attract a bigger premium…
Digital Disciplines vs Generalists – Professional Career Level (P3)
© 2018 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only.
47,800 49,20058,400
52,00062,600
57,500 52,900 55,100 54,100 57,800
Total Guaranteed Compensation Target Total Variable Pay
Source: 2017 All Companies All Sectors Compensation Survey – United Kingdom
22% 31%
Premium Compared to National overall reference in violet
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
willistowerswatson.com
47,80055,100 54,100 57,800
73,900
58,700
Total Guaranteed Compensation Target Total Variable Pay
… and Mobile Software Applications roles attract the biggest premium
Hot skills in Technology vs Software Development – Professional Career Level (P3)
© 2018 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only.
Source: 2017 All Companies All Sectors Compensation Survey – United Kingdom
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
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What companies are doing to attract and retain digital talent beyond base?
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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
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How to reward contingent / gig talent?
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Payment by milestone
Early delivery bonuses
Work quality based
Retention / repeat bonuses
Cash most prevalent
Skillsets based
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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
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A greater emphasis on Skills and Knowledge and less on traditional job families
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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
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willistowerswatson.com
© 2018 Willis Towers Watson. All rights reserved.
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 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
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