Developing a Sustained Supply of Talent: The Total Rewards Approach, National Perspective

Presented by

Paul Rowson, CCP, GRP, WLCP

WorldatWork

Developing a Sustained Supply of Talent: The Total Rewards Approach, National Perspective

Total Rewards in the “New Normal”

Presenter’s Bio• Managing Director, WorldatWork

Washington, D.C. Office/Conference Center

• Senior HR and line management leadership positions at Fannie Mae, Alexus International and Marriott International

• Member, Secretary of Labor Robert Reich’s Commission on Achieving Necessary Skills

• Chaired the Employer Advisory Committee to the District of Columbia’s Department of Employment Services

Paul Rowson, CCP, GRP, WLCP

Our Agenda

Total Rewards overview and current employee engagement factors

What does skills do businesses expect coming out of the chute?

What do the Fortune 500 CHRO’s say?

Where should post-secondary education focus?

Why is it important?

What can business do to help?

Fast facts on pay – including new grad pay

Financial Crisis

Workforce Skill

Shortage

Increasing Work-life Demands

Technology

Regulation

Workforce Demographi

cs

Total Rewards in the “New Normal”

Four Generations in the Workplace

Organization

38%GenY(1976-1994)

37%Boomers

(1946-1964)

22%GenX(1965-1975)

3%Silent

(1900-1945)

Multi-Generational

Workforce

Forcing a Shift in Compensation

and Reward Strategies

Cash is Still King for All Employees

Research Verifies It:

Paying at 75th Percentile

Correlates to Higher Employee

Productivity & Revenue

8 to 5 at the Office: Still the Norm

Total Rewards in the “New Normal”

What matters now?

Interesting work and job design

Flexibility(environment, career)

Recognitionand appreciation

Developmentand opportunity

Backpack to Briefcase - Expectations

Competent communicator and listener

Collaborative thinker and learner

Adaptor/Adopter

Emotional intelligence, resilience, and risk management

Process management skills

High “get it” factor

Results focused and bias for action

Business analytics and acumen

What do Fortune 500 CHRO’s say?

What do Fortune 500 CHRO’s say?

The American education system must do more to provide America’s workers with the education, training, and skill development essential for success in the new 21st century workplace.

America’s students and workers need a much deeper understanding of what is necessary to achieve successful careers in the new global economy.

What do Fortune 500 CHRO’s say?

The advancement of science, technology, engineering and mathematics (STEM) skills must become one of America’s highest domestic policy priorities.

For America to thrive in the 21st century global economy, employers, educators, and government must join forces to create the conditions necessary for American workers to compete effectively on the global stage.

What do Fortune 500 CHRO’s say?

“The key point is that there will be jobs, good jobs, in the 21st Century. However, most of our workplace rules, educational standards, and employment norms are rooted in the 20th Century. We need to come together—all of us—industry, education, government, labor to make the leap to the new century. A competitive and trained American workforce is of national interest.”

Michael L. Davis,Senior Vice President,Global Human Resources,General Mills.

Where Post Secondary Education Should Focus

Outcome and results-based learning

Problem solving

STEM mastery

Human capital supply chain

Leadership and people management skill development

Experiential learning – internships, practicums

Higher order communication skills

Why is this important?

Price of entry for organizational management and key contributors

It’s where companies have the greatest unmet human capital needs

Talent is the key core competitive differentiator; no longer:

● Location

● Market position

● Branding

It’s how organizations differentiate rewards!

What can you/business do to help?

Join advisory boards/influence curriculum and serve as adjunct faculty

Create faculty externships

Create and sustain outcomes-based internships that lead to real jobs

Forgive loans for targeted skilled jobs

Provide open house events for career counselors and placement directors

Provide life-cycle talent feedback to educational institutions

Don’t forget high schools and middle schools

Fast Facts on Pay

2.8% is the national average salary budget for 2011

Current CPI is 3.2%

Not seen a negative gap since 1980, but…

In 1980 the national salary budget was 10% - a lot more “wiggle room” to differentiate pay for performance

WorldatWork 2011-2012 Salary Budget Survey

Fast Facts on New College Grad Pay

4.8% increase in starting salaries compared to 2010

Average starting salary $51,018, but…

Only 35% of new grads will command salaries over $30,000

What do the numbers tell us?

They tell us that the offset is for high demand skills

NACE 2010 Survey

Questions & Comments

Thank You

Paul Rowsonpaul.rowson@worldatwork.org

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