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Making Total Rewards Work
18 DECEMBER 2012




Girish Kohli
Consultant
Email: off- girish.kohli@mercer.com , personal – girishkohli@gmail.com
Mobile - +91- 9971092805

India - Gurgaon - Infinity Towers
Preface


Dear All,
It was a pleasure interacting with everyone yesterday. Please find in the following
slides the discussion point of yesterday. Some of the points in the slide I couldn’t take
up because of paucity of time. There are other sub-topics related to comp which
couldn’t be included this time.
Please feel free to reach out to me for any aspect that you’d like to discuss related to
comp, organization design, employee engagement, etc. My contact details (personal
and professional) are shared on the cover slide and my profile on the following slide.
Additionally am attaching the in the annexure slides which introduce Mercer and its
service offerings. You may find something of interest to your organization there.
Again thank you for the opportunity and for being a wonderful Audience
- Girish




MERCER                                                                                     1
About Girish
                   Present Responsibilities
                   Girish Kohli is a consultant at Mercer’s Gurgaon office and part of the Human Capital
                    Advisory Services (HCAS) business. His role encompasses project delivery and business
                    development across industry segments

                   Experience Details
                    Within Mercer, Girish’s latest project has been with an Indian automobile major where they
                    have helped the client redefine their compensation philosophy, restructure compensation and
                    redesign the annual variable pay program as part of its initiatives to retain its preferred
                    employer branding.
                    He has been part of and led a number of organization structure redesign initiatives for firms in
Key Work Areas:     the FMCG and Automobile sector.
• Organization      He has also worked on an assignment with a German luxury automobile company wherein
  Design            the team evaluated the roles within the organization based on the role profiles developed by
• Total Rewards     them and used the evaluations as an input for compensation benchmarking and related
  Design            advisory.
• PMS Design        He has worked on various projects on HR diagnostics like Employee Engagement surveys,
                    HR Audit and HR process redesign. He has also worked on role clarification and position
• Employee          evaluation, organization design and long term incentive design.
  Engagement
                    Girish’s experience on these projects have been spread over diverse industries like Auto,
• HR Process        FMCG, NGOs and Financial, Logistics, and others.
  Design
                    He has worked with clients like Hero MotoCorp, BMW India, Hindustan Coco Cola Bottling,
• Job Evaluation    Tata Motors, SOS Children’s Villages, ONGC, New Holland Tractors, GRFL and others.

                   Academic Qualifications
                   Girish has an MBA in Marketing and Human Resources from NMIMS, Mumbai. He also holds
                    a B.E. in Computer Engineering from the Army Institute of Technology, Pune.
    MERCER                                                                                                        2
Total Rewards Redesign – Large Multi-location Manufacturing Co.



  A large manufacturing co. that prided itself about being employee centred
 saw extremely low scores on its employee engagement scores on the area
                              of compensation


• Partnered with organization to redesign its rewards framework
  – Compensation Philosophy
  – Compensation Structure Simplification
    - Benefits Design
  – Pay Range Design
  – Transition of Salaries to New Pay Ranges
  – Redesign of Comp Processes
    - Governance
    - Empowerment of Line Managers

MERCER                                                                        3
Contents


• Total Rewards

   – What’s ‘Total’ Rewards

   – Building a Compensation Philosophy

   – Implementing the Philosophy          • Some challenges/ opportunities for

   – Tracking Success of your Rewards      organizations

         Design                             – Internal Parity

                                            – Location Differences

                                            – Employee Wellness

                                            – Rising Medical Costs




MERCER                                                                           4
What constitutes Total Rewards


What would I like to “earn” from my work…

  Salary                  Benefits                 Careers                Work/Life
  Basic                  Retirement                Quality of role
                                                   Quality of role       Time off
                                                                         Time off
  Allowances (HRA, CDA   Medical                   Job Stability
                                                   Job Stability         Workplace facilities
                                                                         Workplace facilities
   etc)                                            Learning and skills   Workplace flexibility
                         Life and accident         Learning and skills   Workplace flexibility
  Performance Pay        insurance                 Development
                                                   Development           Status and recognition
                                                                         Status and recognition
                         Car                       Career growth
                                                   Career growth
                         Housing                   Employer Brand
                                                   Employer Brand




  My value today         My lifestyle, financial   My future value       My quality of life
                         security and protection




                               …What employees across companies have told us
MERCER                                                                                            5
Building a Compensation Philosophy



                                  One Population    Separate Groups
         Segmentation
                                  Business Peers   Talent Competitors
         Market Definition
                                  First Quartile     Fourth Quartile
         Market Competitiveness
                                     One vehicle     Multiple Vehicles
         Reward Elements and Roles
                                        Fixed            Variable
         Compensation Mix
                                     Homogenous        Differentiated
         Internal Equity




MERCER                                                                   6
Articulating a Reward Philosophy for TML
To be effective, a reward philosophy must include these elements

Total Rewards Philosophy must define the role of monetary rewards, career
   opportunities, employee welfare in the overall compensation philosophy
1. Workforce segmentation – One size does not fit all. Rewards need to be
   targeted and managed based on different workforce segments in order to optimize
   spending.
2. Market definition – Selecting a comparator group(s) that represents companies
   from which TML sources talent or to which the company may lose talent assures
   that the target set is relevant.
3. Market Competitiveness – An assessment of how competitive TML needs to be
   considering intensity of competition, growth plans, availability of talent, hiring and
   attrition costs.
4. Reward Elements and Roles – Different elements of total rewards can be used
   to play various roles, such as hygiene factor, attracter, retainer, performance
   driver and should be designed accordingly.
5. Compensation Mix and Differentiation– Ensure that the mix of compensation -
   fixed, short-term incentive, long-term incentive – is reasonable and consistent with
   market practice
6. Internal Equity– How much differentiation are we comfortable with?
MERCER                                                                                      7
Sample Total Rewards Philosophy – Company ABC


• ABC’s total reward philosophy is simple: our employees deserve to be
  compensated fairly and competitively in return for their contribution to ABC’s
  success.
• The company benchmarks its competitive position in the relevant labor markets
  in establishing competitive pay and benefits programs.
• ABC strives to be an employer of choice around the world. Wherever practical, ABC
  believes in emphasizing a strong pay for performance perspective in each
  employee’s total rewards package through merit based pay increases and variable
  bonus programs based upon company, business unit and individual
  performance.
• In many ABC locations around the globe, considerable workplace flexibility has
  been employed on a local level to provide employees and management with the
  ability to adapt company-wide programs to fit local environments.
  – For instance, our ABC Hours program provides for compressed work schedules
     at the beginning of the work week that allow for half work days on Fridays and
     alternative work schedules to accommodate family commitments.
  – ABC’s unit in Renton, WA, U.S. offers an on-site child care facility.
  – Other locations, including both Rhode Island locations, offer on-site exercise
     facilities.
                                                    Source: Data shared in public domain
MERCER                                                                                     8
Implementing the Philosophy - Salary


• Basis of salary
• Define Job equivalence - Develop work levels
• Develop pay bands
• Develop compensation process and guidelines
• Track Parity




MERCER                                           9
Implementing The Philosophy
Salary
Basis for salary: 3 P Model


                                  Person premium, typically based on

                                  • Competency assessment
                                  • Skill/ qualification/ credentials
                                  • Market worth (e.g. Demand-supply)

                                                PAY FOR
                                                 PERSON

                                                        Mixed on the basis
Position Pay typically
                                                        of multiple factors like             TOTAL
based on                           PAY FOR
                                                                                         COMPENSATION
                                                        •   Nature of industry/sector
                                   POSITION                                             OF AN EMPLOYEE
• Position evaluation                                   •   Work profile
• Market pay level for position                         •   Organizational philosophy
                                                PAY FOR

                                              PERFORMANCE

                                  Performance award, typically based
                                  on

                                  • Individual performance
                                  • Organization performance
MERCER                                                                                                   11
Defining Job Equivalence – Define Work Levels



                   Prior to the Position Evaluation                                     Post the Position Evaluation
                               exercise                                                           exercise

                                         L                                                                           L


                                                                                                                                 L-1

                                                                                        Band 1                             L-2
           L-1               L-1                   L-1                     L-1
                                                                                                               L-1

                                                                                             L-1                                       L-2
     L-2         L-2   L-2         L-2       L-2         L-2         L-2         L-2

                                                                                        Band 2
                                                                                                   L-2                           L-2                     L-1
                                                   L-3         L-3
                                                                                                                                             L-3

                                                                                       L-2                           L-2                           L-2
                                                                                       Band 3                                                                        it
                                                                                                         L-2                                                   L-3 hib
                                                                                                                                                                 x
                                                                                                                                                               E




MERCER                                                                                                                                                                   12
Developing Pay Bands




                                                            • Key Design Parameters
                                                              • Number of Structures
                                    Range Spread
                                                              • Number of Ranges
                                                              • Range Spread
                                                              • Mid Point Progression
                                4

                                                            • Parameters Impact
                                                              • Range Overlap (extent
                     3                                          of overlap between
                                    Mid Point Progression       values across ranges)
                                                              • Headspace (number of
             2                                                  years it will take an
                                                                employee to reach from
                                                                range min to max)

Range    1
             Number of ranges

MERCER                                                                                   13
Developing compensation process and guidelines



                      • Qualified with significant experience
                                                                  Pay Ranges assist in monitoring and
         Premium




                      • Exceeding expected contribution           comparing employee compensation
                      • Hiring zone for hot skills                and help guide the decision making
                                                                  in the following processes:
         Market Pay




                      • Qualified with a fair bit of experience
                      • Fully contributing to the role            • Recruitment
                      • Hiring zone for specialized skills
         Developing




                                                                  • Increment
                      • Qualified but relatively inexperienced
                      • Not yet fully contributing to the role
                      • Hiring zone for regular new hires         • Promotion


                      Three Zones in a Pay Range



MERCER                                                                                                  14
Employee’s Pay




                                           Premium
Tracking Parity                                         (Compa-Ratio 1.15)




                                           Market Pay
                                           Developing
                                         Compa             Compa       Compa     Compa     Compa
     Performance Rating                   <80%             80-95%     96-105%   106-120%   >121%

     Does Not Meet Expectations           0%                 0%          0%       0%        0%

     Inconsistently meets Expectations    12%               10%          8%       6%        4%

     Consistently Meets Expectations      19%               17%         15%       13%       11%

     Often Exceeds Expectations           21%               19%         17%       15%       13%

     Consistently Exceeds Expectations    23%               21%         19%       17%       15%

MERCER                                                                                             15
Implementing The Philosophy
Careers
Why are Career Frameworks Important?




                                • Employees value and look for career advancement over and
                                  above base pay*


           PAY       CAREER     • Pay and benefits are replicable; Career and Work-Life policies
                                  provide competitive advantage
                                • In uncertain times companies need to look at more cost effective
         BENEFITS   WORK-LIFE
                                  and sustainable ways to build the employee value proposition

                                • Given the employability gap, career frameworks would facilitate
                                  identifying, developing and deploying in-house talent to bridge
                                  capability gaps




MERCER                                                                                                        17
                                                                   Source: Mercer’s What’s Working research
Mercer’s Point of View
What are Career Frameworks?

           Role family career progression




                      iv
                 t rat
            Illus e


Career Frameworks                            Employees           Organization
                                              Understand         Capabilities
         Transparency
                                             opportunities         visibility

           Control                          Career direction      Best talent


           Velocity                          Right speed       Fill talent pipeline


MERCER                                                                                18
Implementing The Philosophy
Benefits & Work-Life Balance
Benefits – Work Life Balance
Focus: Medical costs, Employee Wellness, Employee Productivity


       Across the Asia Pacific Region, 35% of the 899 companies that
  participated in a the Mercer Marsh Benefits survey spent over 6% of their
  annual payroll on health benefits in 2011, with 10% of those spending in
                                excess of 15%


• According to the American Journal of Health Promotion’s in-depth analysis,
  employers with work site health promotion programs see on average:
• a 27% reduction in sick leave absenteeism
• 26% reduction in health costs, and
• 32% decrease in workers’ compensation and disability claims.
• But the most important finding has to do with all-around wellness ROI. For
  every dollar invested in wellness, employers saw an average savings of
  $5.81 due to improved employee health and reduced medical claims.
   Source: http://www.hrmorning.com/massive-study-shows-true-wellness-roi/?goback=.gde_113026_member_191470058
MERCER                                                                                                           20
                   http://www.mercer.com/press-releases/wellness-programs-combat-rising-healthcare-costs
Tracking Success of Your Rewards Design
Tracking the Success of your Rewards Program




         SAY                                         DO
         What employees and employers                How employees and employers
         say as measured through                     actually behave as measured through

           Management interviews                        Individual employee records of
           Recruiter interviews                         performance, retention, etc.
           Employee surveys                             Organization performance
           Focus groups                                 Exit interview feedback
           Company policies



                                    Complete, verifiable
                                understanding of the interplay
                              between perceptions, behavior and
                                          retention
MERCER                                                                                   22
About Us
Marsh & McLennan Companies


                             Who We Are
     One of world’s elite business enterprises —                   the
              preeminent provider of professional services

                             Who We Are
       Risk and Insurance Services
     One of world’s elite business enterprises — billion in revenue the
                                          • $10.6
     • Marsh
               preeminent provider of professional services
     • Guy Carpenter                      • 140 year history

                                          • Clients in more than
          Consulting Services               100 countries
     • Mercer
     • Oliver Wyman
                                          • 51,000+ colleagues

MERCER                                                                    24
Marsh & McLennan Companies


                                       What We Do
     Provide advice and solutions in the areas of risk,                         strategy
                            and human capital


Marsh                                      Mercer
• Services 87% of Fortune Global 500       • #1 health & benefits consultant/broker
• Manage 3+ lines of coverage for 92% of   • #1 investment consultant
  Fortune 100                              • Leader in retirement, risk & finance consulting

Guy Carpenter                              Oliver Wyman
• #2 global reinsurance intermediary       • #1 financial services strategy consultant
• Fastest growing global reinsurance       • Fastest growing strategy consultant
  intermediary



MERCER                                                                                         25
Mercer


                             Who We Are
             The global leader in human resource consulting,
                  outsourcing and investment services

                             Who We Are
                                      • $3.5 billion in revenue
             The global leader in human resource consulting,
                                      • 65-year history
                  outsourcing and investment services
                                       • 8 lines of business
                                       • 27,000+ clients
                                       • Offices in over 40 countries
                                       • 20,000+ colleagues

MERCER                                                                  26
Mercer



                                 What We Do
                      Help clients optimise the value of their
                         human and financial resources

                                 What We Do
             Mercer’s Services                  Mercer’s Clients
                   Help clients optimize the value of their US
                                          • 80% of the 500 largest
                  Consult
                       human and financialpublic companies
                                             resources
                                             • 70% of FTSE 100 companies
         Invest                 Design
                                             • 70% of CAC 40 companies
                                             • 65% of Nikkei 225 companies
                                             • 80% of clients <5000 employees
         Administer          Implement



MERCER                                                                          27
Mercer


               How We Make a Difference
             Enhance the health, wealth and quality
                   of the global workforce

               How We Make a Difference
             Enhance the health, wealth • 27,000+ Mercer clients
                                        and quality
                   of the global workforce
                                        • 9 million+ benefit plan
                                          participants
                                         • 110 million+ employees
                                           of Mercer clients




MERCER                                                              28
Mercer
Impact on the Marketplace




MERCER                      29
The Mercer Advantage –
Brand / Intellectual Capital

          Mercer Brand Prestige                Intellectual Capital
                                           • World Economic Forum –
          Consulting Firm Rankings*
                                             Practising Talent Mobility for
                           2011   2010       Economic Growth study
 McKinsey & Company         1         1
                                           • Mercer India Monitor
 Boston Consulting Group    2         2
 Bain & Company             3         3    • AIMA Management Capability
 Booz & Company             4         4      Index
 Deloitte Consulting LLP    5         5

 Mercer                     6         8    • NASSCOM Mercer Inclusivity
 -------------------
                                             Report
 Towers Watson              17        14
                                           • CII Mercer Talent Survey
 Aon Consulting             32        35

* vault 2011 rankings
 MERCER                                                                   30
Mercer in India
                                      Mercer Business Lines


                                                          Retirement
                          Information                                         Health & Benefits
 Human Capital                                             Benefits
                       Product Solutions                                        Consulting
                                                          Consulting

                       Product and                                           Service Offerings
Service Offerings                                    Service Offerings
                       Service Offerings
                                                                              Benefit Design
Board Governance                                      Plan Design
                       Compensation Co-                                       Financial Analysis &
Broad Based                                           Funding
                       Sourcing                                               Plan Funding
Rewards                                               Accounting
                       Compensation                                           Risk Carrier
Executive                                             Standards
                       Surveys                                                Selection
Remuneration                                          Legal Compliance
                       Benefits Surveys                                       Benefits Broking*
HR Transformation                                     Vendor
                       Corporate                                              Communication &
Leadership                                            Management
                       Benchmarking                                           Administration
Development                                           Mergers,
Performance            Employee Mobility
                                                      Acquisitions and
Measurement            Services
                                                      Restructuring
Sales Effectiveness    Mercer PayMonitor
                                                      Multinational Issues
Workforce Strategies   Asia Monitor
                                                      Communication &
Employee               Global Publications
                                                      Education
Engagement

                                                                               •In collaboration
                                                                                with Marsh India


 MERCER                                                                                            31
Mercer key clients in India




MERCER                          32
The Mercer advantage


1
     Experience of working in large complex projects with multiple clients across sectors. Mercer provides
    support to 50% of the Fortune 100 companies and over 40% of the Fortune 500 companies.

2
    Experience of working in most industry verticals to deliver solutions suited to their context

3
    Mercer starts each project with the primary goal of understanding the unique challenges and priorities
    of the client

4
    Experienced team with ability to execute and manage assignments of such scale and complexity

5
    Mercer is strongly positioned in the areas of culture, job evaluation, leadership and rewards


6
    Mercer follows a consultative and collaborative approach to understand the changing priorities and
    complexities of client organizations and is flexible, nimble and open to new ideas



MERCER                                                                                                       33
Our extensive experience: We have worked with industry leaders, start-ups
    and the government sector in diverse areas




Experience in
large complex
 assignments




Experience
with start-up
assignments




Understanding
of the
government
sector



MERCER                                                                          34
Here is what our clients have to say about us…
A few client testimonials

   "Mercer did a thorough research into the working of                our
   organization, its mission, vision , objectives and existing structure,
                                                                                               - Mr. Rajeev Ranjan
   before coming out with their recommendations. They have been                Deputy National Director – Human
   very systematic and interactive in their approach, obtaining                                      Resources,
   feedback from staff members across all levels. Their
   recommendations formed the basis for our new organization                              SOS Children’s Villages
   structure, PMS policy, recruitment & selection policy and
   compensation policy , among others”.



             - Mr. Rajiv Arora             “ The project was managed exceptionally well and was
                                           completed within the stipulated timeframe. The
         Head – People Team,               recommendations have been implemented within our
                                           organization successfully with adequate support from Mercer
Virgin Mobile India Pvt. Ltd.
                                           Consulting”.




                                                                               Mr. PV Ramana Murthy
  “I would like to place on record my appreciation for the quality
               and thorough work done by Mercer”.                           Head – Human Resources,
                                                                            Hindustan Coca Cola India



MERCER                                                                                                         35
Here is what our clients have to say about us…
A few client testimonials

         “It has been an extremely enjoyable and learning experience working
         with Mercer Team on the assessment of our high potential employees.           Dr. Sunil Kumar Singh
         They bring with them a complete dedication and a sound research
         experience at each stage of the work and none are given lesser                     Group GM – HRD
         importance. The result was amazing as the tool and was extremely
                                                                                                   Punj Lloyd
         contextualized and all assesses recognized this fact along with all
         other stakeholders. Overall, I personally find them never
         compromising with basic concepts”.




          - KRN Moorthy                “Before our PMS re-design , we were targeting a laundry list of
                                       objectives. Consequently, we were losing focus on what we really
                   Dy MD               needed to do to achieve more growth and better performance. Mercer
           Wanbury Ltd.                helped us in redesigning the PMS system. The project has been
                                       implemented successfully, and we would recommend them as a
                                       consulting partner in designing and implementing Human Capital
                                       Solutions




MERCER                                                                                                      36
Snapshot of some key service offerings
Actuarial valuations and retirement benefits consulting

• Actuarial valuation services covering:                     • Mercer’s strength:
  –    Gratuity                                                –   Qualified actuaries with rich experience across
  –    Leave encashment related liabilities                        different client situations
  –    Ex gratia plan                                          –   Strong experience with retirement benefit plans of
  –    Voluntary retirement plan                                   private and public sector organizations in India
                                                               –   Experience with defining financial and demographic
  –    ESOP
                                                                   assumptions
  –    Post retirement medical plans
                                                               –   Support for transition from previous actuary
  –    Provided fun
                                                               –   Global actuarial support
  –    Other long term employee benefits like long service
       awards

• Retirement benefits consulting services
  –    Review of retirement benefit schemes and re-                                                   Plan Design &
                                                                                                          Govt. approvals
                                                                                 Support in Fund        for trust fund
       engineering                                                                Manager selection
                                                                                                           Other Labour
                                                                                                          Law services
  –    Retirement plan design
  –    Government approvals on retirement benefits fund
                                                                             Actuarial
       trust set ups                                                         Valuation

  –    PF registration & obtaining of exemption/relaxation
  –    Analysis support for selection of fund managers for
       retirement benefits
  –    Labor law support for retirement benefits
      MERCER                                                                                                                38
Compensation benchmarking and planning

• Service offering includes:
                                                                      Position specific
  –    Compensation and benefits benchmarking across 13              compensation data
       industry segments including Asset Management,
       IT/ITeS, Consumer, Pharma, Medical Equipment,
       Chemical, Hospitality, Oil & Gas etc
  –    Customized survey options
  –    Job specific benchmarks
  –    Surveys and data for expatriates moving out of India
       and expatriates moving into India
  –    Pay range development and compensation planning

• Mercer’s strength                                         Detailed benefits
                                                              benchmarks
  –    Ability to provide off the shelf reports from a database
       of 500 plus companies across multiple industry
       segments
  –    Detailed compensation & benefits data available
  –    Ability to provide online access to reports for unlimited
       generation of benchmarks
  –    Customized survey options



      MERCER                                                                              39
Organization structuring and manpower estimation

• Service offering includes:
                                                                 Sample Structuring
  –    Organizational diagnostics to recommend structure          Design Criteria
                                                                                      Mercer’s Single Frame
       aligned to business context, objectives and strategy                              Expert Process
  –    Structure support mechanism development (review
       forums, permanent/ temporary teams etc.)
  –    Workload analysis and manpower requirement
       modeling
  –    Implementation planning/ roadmap development to
       help organizations roll out proposed structures
  –    Communication and change management support for
       effective deployment

• Mercer’s strength
  –    End-to-end value chain offering: from diagnosis to
       design to implementation support
  –    Structured and robust methodology based on analysis
       of organizational data like processes, value chain etc.
  –    Strong experience in organization structuring related                             Process Analysis to
       projects across diverse sectors like Automotive,                                 Organization Structure
       FMCG, Manufacturing, Telecom, Hospitality etc


      MERCER                                                                                            40
Responsibility mapping and workforce levelling

• Service offering includes:
                                                                                        Mercer’s 3-P Management Model
  –    Responsibility identification and mapping within an
       organizations through a structured process and
       documentation
                                                                 Mercer’s RC document
  –    Role evaluation using Mercer’s International Position
       Evaluation methodology (IPETM)
  –    Identification of work levels/ bands based on natural
       progression of roles within the organization

• Mercer’s strength
                                                                                                  Mercer’s IPE system
  –    Structured and robust Role Clarification methodology
       based organizational business processes
  –    Globally implemented proprietary International Position
       Evaluation System (Mercer IPETM)
  –    More than 350+ licensed Mercer e-IPETM clients globally         Banding Sample
  –    Strong experience in India; conducted 6,000 evaluations
       in the last 5 years across more than 80 companies
  –    Linkage to Mercer’s strong compensation database
  –    Strong on ground support with trained, certified and
       experienced consultants


      MERCER                                                                                                    41
Performance management and rewards plan design
                                                                                  Three Pronged Rewards Strategy

• Service offering includes:
  – Rewards strategy and design                       Total Rewards Strategy Framework
  – Variable pay and short term incentive plan design
  – Performance management system aligned with
     reward programs



• Mercer’s strengths
  –      Experienced team of reward experts
  –      Consistent methodologies and frameworks,
                                                                Incentive Framework
  –      Proprietary tools and global data resources,
  –      Tailored solutions that strategically allocate total
         reward resources and link employee rewards to
         business performance




MERCER                                                                                                  42
Competency design and assessment
                                                                 Competency Themeing Process

• Service offering includes:
  –    Behavioral competency frameworks design
  –    Technical competency frameworks design
  –    Role profiling
  –    Assessment centers
  –    Creation of feedback reports and individual
       development plans


• Mercer’s strength
  –    Vast experience in designing behavioral and                                           Sample
                                                                                           Competency
       technical competencies across sectors                                               Framework
  –    Strong database in the area of behavioral
       competencies
  –    Trained and experienced assessors
  –    Conducted approximately 5,000 assessments
       since 2000

                                                     Sample
                                                      Role
                                                     Profiling


      MERCER                                                                                   43
Career management frameworks
                                                                 Career Management: The Career Joint Venture

• Service offering includes:
  –    Career Progression framework: which includes:
       - Defining Career Streams
       - Developing integrated Career Paths/ Lattices
       - Defining Career Progression criteria
  –    Succession Planning framework
                                                         Career Paths/            Career Progression criteria
• Mercer’s strength                                      Lattices
  –    Experienced consultants as a result of deep
       understanding of business imperatives and
       linkage with HR
  –    Expertise to integrate career path architecture
       with other HR systems and processes
  –    Consistent and well defined frameworks
  –    Global data resources and experts




                                                                                              Sample Career Maps


      MERCER                                                                                                    44
Leadership assessment, development and succession
                                                                         Leadership Development Process
• Service offering includes:
  –    Success profiles design
  –    360 degree assessment
  –    Action learning process design and conduct
  –    Coaching and mentoring workshops




• Mercer’s strength
  –    Experience of working with diverse clients from    Action Learning Process
       educational institutions to multinational                                         The Learning Journey
       organizations
  –    Mercer experts are certified leadership trainers
       with acclaimed degrees from international
       universities like Harvard University




      MERCER                                                                                                    45
Executive remuneration
                                                            Mercer’s four Quadrant Framework

• Service offering includes:
  – Executive remuneration strategy to support
     business strategy, reward for performance, and
     attract / retain talent
  – Long term Incentive plan design and
     implementation
  – Equity strategy development, including grant
     guidelines and management of share reserves
  – Implications of tax, accounting, and other regulatory
     developments on executive remuneration programs
  – Board of director remuneration strategy and design
                                                                                  Mercer’s Performance
• Mercer’s strength                                                              Sensitivity Analysis (PSA)
  – In-depth knowledge of local market through annual                                        tool
     compensation and other benchmarking surveys
  – Significant global and local experience in executive
     remuneration design and implementation
  – Analytical tools and data
  – Depth and breadth of regulatory and technical
     expertise
  – Capabilities/credentials of individual consultants
     and subject matter experts


     MERCER                                                                                       46
HR effectiveness
                                                                             Mercer’s HR Design Process

• Service offering includes:
  –    Diagnosis of current HR systems and processes
  –    Process redesign and improvement measures
  –    HR policy design
  –    Service delivery model design and
       implementation
  –    Sourcing strategy development and
       implementation

• Mercer’s strength
  –    End-to-end value chain offering, from diagnosis to
       design to implementation support
  –    Specific focus on the HR function; expertise and
       knowledge behind consulting                                                                    HR Operations
                                                                                                     Scanner Samples
  –    Global reach and resources                           Process Manual
                                                                Sample
  –    Quantitative approach; supported by best-of-
       breed methodologies




      MERCER                                                                                                 47
Employee engagement
                                                           Mercer’s Six Factor Framework and drivers for engagement
• Service offering includes:
  –    Mercer’s employee engagement survey based on
       the ‘Cause-Effect’ model of engagement. (Mercer’s
       Proprietary Six Factor Framework based on 13
       drivers of engagement)
  –    Aimed at gaining a deeper understanding of
       employee perceptions on various aspects within an
       organization.

                                                             Four phases of Mercer’s Employee Engagement Model
• Mercer’s strength
  –    End-to end solution provider: survey conduct-
       analysis- action plan design- implementation
       assistance
  –    Experience of conducting engagement surveys
       with large scale as well as small scale
       organizations
  –    Over 3,000 employees surveyed till date in India
  –    Benchmarking survey results with Mercer’s What’s
       working database and Mercer BT survey



      MERCER                                                                                                 48
Registered Office: 70 / 39 B, 2nd Floor, KLJ Complex, Opp. Motinagar Police Station, Najafgarh Road, New Delhi - 110015, India

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Making total rewards work

  • 1. Making Total Rewards Work 18 DECEMBER 2012 Girish Kohli Consultant Email: off- girish.kohli@mercer.com , personal – girishkohli@gmail.com Mobile - +91- 9971092805 India - Gurgaon - Infinity Towers
  • 2. Preface Dear All, It was a pleasure interacting with everyone yesterday. Please find in the following slides the discussion point of yesterday. Some of the points in the slide I couldn’t take up because of paucity of time. There are other sub-topics related to comp which couldn’t be included this time. Please feel free to reach out to me for any aspect that you’d like to discuss related to comp, organization design, employee engagement, etc. My contact details (personal and professional) are shared on the cover slide and my profile on the following slide. Additionally am attaching the in the annexure slides which introduce Mercer and its service offerings. You may find something of interest to your organization there. Again thank you for the opportunity and for being a wonderful Audience - Girish MERCER 1
  • 3. About Girish Present Responsibilities Girish Kohli is a consultant at Mercer’s Gurgaon office and part of the Human Capital Advisory Services (HCAS) business. His role encompasses project delivery and business development across industry segments Experience Details Within Mercer, Girish’s latest project has been with an Indian automobile major where they have helped the client redefine their compensation philosophy, restructure compensation and redesign the annual variable pay program as part of its initiatives to retain its preferred employer branding. He has been part of and led a number of organization structure redesign initiatives for firms in Key Work Areas: the FMCG and Automobile sector. • Organization He has also worked on an assignment with a German luxury automobile company wherein Design the team evaluated the roles within the organization based on the role profiles developed by • Total Rewards them and used the evaluations as an input for compensation benchmarking and related Design advisory. • PMS Design He has worked on various projects on HR diagnostics like Employee Engagement surveys, HR Audit and HR process redesign. He has also worked on role clarification and position • Employee evaluation, organization design and long term incentive design. Engagement Girish’s experience on these projects have been spread over diverse industries like Auto, • HR Process FMCG, NGOs and Financial, Logistics, and others. Design He has worked with clients like Hero MotoCorp, BMW India, Hindustan Coco Cola Bottling, • Job Evaluation Tata Motors, SOS Children’s Villages, ONGC, New Holland Tractors, GRFL and others. Academic Qualifications Girish has an MBA in Marketing and Human Resources from NMIMS, Mumbai. He also holds a B.E. in Computer Engineering from the Army Institute of Technology, Pune. MERCER 2
  • 4. Total Rewards Redesign – Large Multi-location Manufacturing Co. A large manufacturing co. that prided itself about being employee centred saw extremely low scores on its employee engagement scores on the area of compensation • Partnered with organization to redesign its rewards framework – Compensation Philosophy – Compensation Structure Simplification - Benefits Design – Pay Range Design – Transition of Salaries to New Pay Ranges – Redesign of Comp Processes - Governance - Empowerment of Line Managers MERCER 3
  • 5. Contents • Total Rewards – What’s ‘Total’ Rewards – Building a Compensation Philosophy – Implementing the Philosophy • Some challenges/ opportunities for – Tracking Success of your Rewards organizations Design – Internal Parity – Location Differences – Employee Wellness – Rising Medical Costs MERCER 4
  • 6. What constitutes Total Rewards What would I like to “earn” from my work… Salary Benefits Careers Work/Life Basic Retirement Quality of role Quality of role Time off Time off Allowances (HRA, CDA Medical Job Stability Job Stability Workplace facilities Workplace facilities etc) Learning and skills Workplace flexibility Life and accident Learning and skills Workplace flexibility Performance Pay insurance Development Development Status and recognition Status and recognition Car Career growth Career growth Housing Employer Brand Employer Brand My value today My lifestyle, financial My future value My quality of life security and protection …What employees across companies have told us MERCER 5
  • 7. Building a Compensation Philosophy One Population Separate Groups Segmentation Business Peers Talent Competitors Market Definition First Quartile Fourth Quartile Market Competitiveness One vehicle Multiple Vehicles Reward Elements and Roles Fixed Variable Compensation Mix Homogenous Differentiated Internal Equity MERCER 6
  • 8. Articulating a Reward Philosophy for TML To be effective, a reward philosophy must include these elements Total Rewards Philosophy must define the role of monetary rewards, career opportunities, employee welfare in the overall compensation philosophy 1. Workforce segmentation – One size does not fit all. Rewards need to be targeted and managed based on different workforce segments in order to optimize spending. 2. Market definition – Selecting a comparator group(s) that represents companies from which TML sources talent or to which the company may lose talent assures that the target set is relevant. 3. Market Competitiveness – An assessment of how competitive TML needs to be considering intensity of competition, growth plans, availability of talent, hiring and attrition costs. 4. Reward Elements and Roles – Different elements of total rewards can be used to play various roles, such as hygiene factor, attracter, retainer, performance driver and should be designed accordingly. 5. Compensation Mix and Differentiation– Ensure that the mix of compensation - fixed, short-term incentive, long-term incentive – is reasonable and consistent with market practice 6. Internal Equity– How much differentiation are we comfortable with? MERCER 7
  • 9. Sample Total Rewards Philosophy – Company ABC • ABC’s total reward philosophy is simple: our employees deserve to be compensated fairly and competitively in return for their contribution to ABC’s success. • The company benchmarks its competitive position in the relevant labor markets in establishing competitive pay and benefits programs. • ABC strives to be an employer of choice around the world. Wherever practical, ABC believes in emphasizing a strong pay for performance perspective in each employee’s total rewards package through merit based pay increases and variable bonus programs based upon company, business unit and individual performance. • In many ABC locations around the globe, considerable workplace flexibility has been employed on a local level to provide employees and management with the ability to adapt company-wide programs to fit local environments. – For instance, our ABC Hours program provides for compressed work schedules at the beginning of the work week that allow for half work days on Fridays and alternative work schedules to accommodate family commitments. – ABC’s unit in Renton, WA, U.S. offers an on-site child care facility. – Other locations, including both Rhode Island locations, offer on-site exercise facilities. Source: Data shared in public domain MERCER 8
  • 10. Implementing the Philosophy - Salary • Basis of salary • Define Job equivalence - Develop work levels • Develop pay bands • Develop compensation process and guidelines • Track Parity MERCER 9
  • 12. Basis for salary: 3 P Model Person premium, typically based on • Competency assessment • Skill/ qualification/ credentials • Market worth (e.g. Demand-supply) PAY FOR PERSON Mixed on the basis Position Pay typically of multiple factors like TOTAL based on PAY FOR COMPENSATION • Nature of industry/sector POSITION OF AN EMPLOYEE • Position evaluation • Work profile • Market pay level for position • Organizational philosophy PAY FOR PERFORMANCE Performance award, typically based on • Individual performance • Organization performance MERCER 11
  • 13. Defining Job Equivalence – Define Work Levels Prior to the Position Evaluation Post the Position Evaluation exercise exercise L L L-1 Band 1 L-2 L-1 L-1 L-1 L-1 L-1 L-1 L-2 L-2 L-2 L-2 L-2 L-2 L-2 L-2 L-2 Band 2 L-2 L-2 L-1 L-3 L-3 L-3 L-2 L-2 L-2 Band 3 it L-2 L-3 hib x E MERCER 12
  • 14. Developing Pay Bands • Key Design Parameters • Number of Structures Range Spread • Number of Ranges • Range Spread • Mid Point Progression 4 • Parameters Impact • Range Overlap (extent 3 of overlap between Mid Point Progression values across ranges) • Headspace (number of 2 years it will take an employee to reach from range min to max) Range 1 Number of ranges MERCER 13
  • 15. Developing compensation process and guidelines • Qualified with significant experience Pay Ranges assist in monitoring and Premium • Exceeding expected contribution comparing employee compensation • Hiring zone for hot skills and help guide the decision making in the following processes: Market Pay • Qualified with a fair bit of experience • Fully contributing to the role • Recruitment • Hiring zone for specialized skills Developing • Increment • Qualified but relatively inexperienced • Not yet fully contributing to the role • Hiring zone for regular new hires • Promotion Three Zones in a Pay Range MERCER 14
  • 16. Employee’s Pay Premium Tracking Parity (Compa-Ratio 1.15) Market Pay Developing Compa Compa Compa Compa Compa Performance Rating <80% 80-95% 96-105% 106-120% >121% Does Not Meet Expectations 0% 0% 0% 0% 0% Inconsistently meets Expectations 12% 10% 8% 6% 4% Consistently Meets Expectations 19% 17% 15% 13% 11% Often Exceeds Expectations 21% 19% 17% 15% 13% Consistently Exceeds Expectations 23% 21% 19% 17% 15% MERCER 15
  • 18. Why are Career Frameworks Important? • Employees value and look for career advancement over and above base pay* PAY CAREER • Pay and benefits are replicable; Career and Work-Life policies provide competitive advantage • In uncertain times companies need to look at more cost effective BENEFITS WORK-LIFE and sustainable ways to build the employee value proposition • Given the employability gap, career frameworks would facilitate identifying, developing and deploying in-house talent to bridge capability gaps MERCER 17 Source: Mercer’s What’s Working research
  • 19. Mercer’s Point of View What are Career Frameworks? Role family career progression iv t rat Illus e Career Frameworks Employees Organization Understand Capabilities Transparency opportunities visibility Control Career direction Best talent Velocity Right speed Fill talent pipeline MERCER 18
  • 21. Benefits – Work Life Balance Focus: Medical costs, Employee Wellness, Employee Productivity Across the Asia Pacific Region, 35% of the 899 companies that participated in a the Mercer Marsh Benefits survey spent over 6% of their annual payroll on health benefits in 2011, with 10% of those spending in excess of 15% • According to the American Journal of Health Promotion’s in-depth analysis, employers with work site health promotion programs see on average: • a 27% reduction in sick leave absenteeism • 26% reduction in health costs, and • 32% decrease in workers’ compensation and disability claims. • But the most important finding has to do with all-around wellness ROI. For every dollar invested in wellness, employers saw an average savings of $5.81 due to improved employee health and reduced medical claims. Source: http://www.hrmorning.com/massive-study-shows-true-wellness-roi/?goback=.gde_113026_member_191470058 MERCER 20 http://www.mercer.com/press-releases/wellness-programs-combat-rising-healthcare-costs
  • 22. Tracking Success of Your Rewards Design
  • 23. Tracking the Success of your Rewards Program SAY DO What employees and employers How employees and employers say as measured through actually behave as measured through Management interviews Individual employee records of Recruiter interviews performance, retention, etc. Employee surveys Organization performance Focus groups Exit interview feedback Company policies Complete, verifiable understanding of the interplay between perceptions, behavior and retention MERCER 22
  • 25. Marsh & McLennan Companies Who We Are One of world’s elite business enterprises — the preeminent provider of professional services Who We Are Risk and Insurance Services One of world’s elite business enterprises — billion in revenue the • $10.6 • Marsh preeminent provider of professional services • Guy Carpenter • 140 year history • Clients in more than Consulting Services 100 countries • Mercer • Oliver Wyman • 51,000+ colleagues MERCER 24
  • 26. Marsh & McLennan Companies What We Do Provide advice and solutions in the areas of risk, strategy and human capital Marsh Mercer • Services 87% of Fortune Global 500 • #1 health & benefits consultant/broker • Manage 3+ lines of coverage for 92% of • #1 investment consultant Fortune 100 • Leader in retirement, risk & finance consulting Guy Carpenter Oliver Wyman • #2 global reinsurance intermediary • #1 financial services strategy consultant • Fastest growing global reinsurance • Fastest growing strategy consultant intermediary MERCER 25
  • 27. Mercer Who We Are The global leader in human resource consulting, outsourcing and investment services Who We Are • $3.5 billion in revenue The global leader in human resource consulting, • 65-year history outsourcing and investment services • 8 lines of business • 27,000+ clients • Offices in over 40 countries • 20,000+ colleagues MERCER 26
  • 28. Mercer What We Do Help clients optimise the value of their human and financial resources What We Do Mercer’s Services Mercer’s Clients Help clients optimize the value of their US • 80% of the 500 largest Consult human and financialpublic companies resources • 70% of FTSE 100 companies Invest Design • 70% of CAC 40 companies • 65% of Nikkei 225 companies • 80% of clients <5000 employees Administer Implement MERCER 27
  • 29. Mercer How We Make a Difference Enhance the health, wealth and quality of the global workforce How We Make a Difference Enhance the health, wealth • 27,000+ Mercer clients and quality of the global workforce • 9 million+ benefit plan participants • 110 million+ employees of Mercer clients MERCER 28
  • 30. Mercer Impact on the Marketplace MERCER 29
  • 31. The Mercer Advantage – Brand / Intellectual Capital Mercer Brand Prestige Intellectual Capital • World Economic Forum – Consulting Firm Rankings* Practising Talent Mobility for 2011 2010 Economic Growth study McKinsey & Company 1 1 • Mercer India Monitor Boston Consulting Group 2 2 Bain & Company 3 3 • AIMA Management Capability Booz & Company 4 4 Index Deloitte Consulting LLP 5 5 Mercer 6 8 • NASSCOM Mercer Inclusivity ------------------- Report Towers Watson 17 14 • CII Mercer Talent Survey Aon Consulting 32 35 * vault 2011 rankings MERCER 30
  • 32. Mercer in India Mercer Business Lines Retirement Information Health & Benefits Human Capital Benefits Product Solutions Consulting Consulting Product and Service Offerings Service Offerings Service Offerings Service Offerings Benefit Design Board Governance Plan Design Compensation Co- Financial Analysis & Broad Based Funding Sourcing Plan Funding Rewards Accounting Compensation Risk Carrier Executive Standards Surveys Selection Remuneration Legal Compliance Benefits Surveys Benefits Broking* HR Transformation Vendor Corporate Communication & Leadership Management Benchmarking Administration Development Mergers, Performance Employee Mobility Acquisitions and Measurement Services Restructuring Sales Effectiveness Mercer PayMonitor Multinational Issues Workforce Strategies Asia Monitor Communication & Employee Global Publications Education Engagement •In collaboration with Marsh India MERCER 31
  • 33. Mercer key clients in India MERCER 32
  • 34. The Mercer advantage 1 Experience of working in large complex projects with multiple clients across sectors. Mercer provides support to 50% of the Fortune 100 companies and over 40% of the Fortune 500 companies. 2 Experience of working in most industry verticals to deliver solutions suited to their context 3 Mercer starts each project with the primary goal of understanding the unique challenges and priorities of the client 4 Experienced team with ability to execute and manage assignments of such scale and complexity 5 Mercer is strongly positioned in the areas of culture, job evaluation, leadership and rewards 6 Mercer follows a consultative and collaborative approach to understand the changing priorities and complexities of client organizations and is flexible, nimble and open to new ideas MERCER 33
  • 35. Our extensive experience: We have worked with industry leaders, start-ups and the government sector in diverse areas Experience in large complex assignments Experience with start-up assignments Understanding of the government sector MERCER 34
  • 36. Here is what our clients have to say about us… A few client testimonials "Mercer did a thorough research into the working of our organization, its mission, vision , objectives and existing structure, - Mr. Rajeev Ranjan before coming out with their recommendations. They have been Deputy National Director – Human very systematic and interactive in their approach, obtaining Resources, feedback from staff members across all levels. Their recommendations formed the basis for our new organization SOS Children’s Villages structure, PMS policy, recruitment & selection policy and compensation policy , among others”. - Mr. Rajiv Arora “ The project was managed exceptionally well and was completed within the stipulated timeframe. The Head – People Team, recommendations have been implemented within our organization successfully with adequate support from Mercer Virgin Mobile India Pvt. Ltd. Consulting”. Mr. PV Ramana Murthy “I would like to place on record my appreciation for the quality and thorough work done by Mercer”. Head – Human Resources, Hindustan Coca Cola India MERCER 35
  • 37. Here is what our clients have to say about us… A few client testimonials “It has been an extremely enjoyable and learning experience working with Mercer Team on the assessment of our high potential employees. Dr. Sunil Kumar Singh They bring with them a complete dedication and a sound research experience at each stage of the work and none are given lesser Group GM – HRD importance. The result was amazing as the tool and was extremely Punj Lloyd contextualized and all assesses recognized this fact along with all other stakeholders. Overall, I personally find them never compromising with basic concepts”. - KRN Moorthy “Before our PMS re-design , we were targeting a laundry list of objectives. Consequently, we were losing focus on what we really Dy MD needed to do to achieve more growth and better performance. Mercer Wanbury Ltd. helped us in redesigning the PMS system. The project has been implemented successfully, and we would recommend them as a consulting partner in designing and implementing Human Capital Solutions MERCER 36
  • 38. Snapshot of some key service offerings
  • 39. Actuarial valuations and retirement benefits consulting • Actuarial valuation services covering: • Mercer’s strength: – Gratuity – Qualified actuaries with rich experience across – Leave encashment related liabilities different client situations – Ex gratia plan – Strong experience with retirement benefit plans of – Voluntary retirement plan private and public sector organizations in India – Experience with defining financial and demographic – ESOP assumptions – Post retirement medical plans – Support for transition from previous actuary – Provided fun – Global actuarial support – Other long term employee benefits like long service awards • Retirement benefits consulting services – Review of retirement benefit schemes and re- Plan Design & Govt. approvals Support in Fund for trust fund engineering Manager selection Other Labour Law services – Retirement plan design – Government approvals on retirement benefits fund Actuarial trust set ups Valuation – PF registration & obtaining of exemption/relaxation – Analysis support for selection of fund managers for retirement benefits – Labor law support for retirement benefits MERCER 38
  • 40. Compensation benchmarking and planning • Service offering includes: Position specific – Compensation and benefits benchmarking across 13 compensation data industry segments including Asset Management, IT/ITeS, Consumer, Pharma, Medical Equipment, Chemical, Hospitality, Oil & Gas etc – Customized survey options – Job specific benchmarks – Surveys and data for expatriates moving out of India and expatriates moving into India – Pay range development and compensation planning • Mercer’s strength Detailed benefits benchmarks – Ability to provide off the shelf reports from a database of 500 plus companies across multiple industry segments – Detailed compensation & benefits data available – Ability to provide online access to reports for unlimited generation of benchmarks – Customized survey options MERCER 39
  • 41. Organization structuring and manpower estimation • Service offering includes: Sample Structuring – Organizational diagnostics to recommend structure Design Criteria Mercer’s Single Frame aligned to business context, objectives and strategy Expert Process – Structure support mechanism development (review forums, permanent/ temporary teams etc.) – Workload analysis and manpower requirement modeling – Implementation planning/ roadmap development to help organizations roll out proposed structures – Communication and change management support for effective deployment • Mercer’s strength – End-to-end value chain offering: from diagnosis to design to implementation support – Structured and robust methodology based on analysis of organizational data like processes, value chain etc. – Strong experience in organization structuring related Process Analysis to projects across diverse sectors like Automotive, Organization Structure FMCG, Manufacturing, Telecom, Hospitality etc MERCER 40
  • 42. Responsibility mapping and workforce levelling • Service offering includes: Mercer’s 3-P Management Model – Responsibility identification and mapping within an organizations through a structured process and documentation Mercer’s RC document – Role evaluation using Mercer’s International Position Evaluation methodology (IPETM) – Identification of work levels/ bands based on natural progression of roles within the organization • Mercer’s strength Mercer’s IPE system – Structured and robust Role Clarification methodology based organizational business processes – Globally implemented proprietary International Position Evaluation System (Mercer IPETM) – More than 350+ licensed Mercer e-IPETM clients globally Banding Sample – Strong experience in India; conducted 6,000 evaluations in the last 5 years across more than 80 companies – Linkage to Mercer’s strong compensation database – Strong on ground support with trained, certified and experienced consultants MERCER 41
  • 43. Performance management and rewards plan design Three Pronged Rewards Strategy • Service offering includes: – Rewards strategy and design Total Rewards Strategy Framework – Variable pay and short term incentive plan design – Performance management system aligned with reward programs • Mercer’s strengths – Experienced team of reward experts – Consistent methodologies and frameworks, Incentive Framework – Proprietary tools and global data resources, – Tailored solutions that strategically allocate total reward resources and link employee rewards to business performance MERCER 42
  • 44. Competency design and assessment Competency Themeing Process • Service offering includes: – Behavioral competency frameworks design – Technical competency frameworks design – Role profiling – Assessment centers – Creation of feedback reports and individual development plans • Mercer’s strength – Vast experience in designing behavioral and Sample Competency technical competencies across sectors Framework – Strong database in the area of behavioral competencies – Trained and experienced assessors – Conducted approximately 5,000 assessments since 2000 Sample Role Profiling MERCER 43
  • 45. Career management frameworks Career Management: The Career Joint Venture • Service offering includes: – Career Progression framework: which includes: - Defining Career Streams - Developing integrated Career Paths/ Lattices - Defining Career Progression criteria – Succession Planning framework Career Paths/ Career Progression criteria • Mercer’s strength Lattices – Experienced consultants as a result of deep understanding of business imperatives and linkage with HR – Expertise to integrate career path architecture with other HR systems and processes – Consistent and well defined frameworks – Global data resources and experts Sample Career Maps MERCER 44
  • 46. Leadership assessment, development and succession Leadership Development Process • Service offering includes: – Success profiles design – 360 degree assessment – Action learning process design and conduct – Coaching and mentoring workshops • Mercer’s strength – Experience of working with diverse clients from Action Learning Process educational institutions to multinational The Learning Journey organizations – Mercer experts are certified leadership trainers with acclaimed degrees from international universities like Harvard University MERCER 45
  • 47. Executive remuneration Mercer’s four Quadrant Framework • Service offering includes: – Executive remuneration strategy to support business strategy, reward for performance, and attract / retain talent – Long term Incentive plan design and implementation – Equity strategy development, including grant guidelines and management of share reserves – Implications of tax, accounting, and other regulatory developments on executive remuneration programs – Board of director remuneration strategy and design Mercer’s Performance • Mercer’s strength Sensitivity Analysis (PSA) – In-depth knowledge of local market through annual tool compensation and other benchmarking surveys – Significant global and local experience in executive remuneration design and implementation – Analytical tools and data – Depth and breadth of regulatory and technical expertise – Capabilities/credentials of individual consultants and subject matter experts MERCER 46
  • 48. HR effectiveness Mercer’s HR Design Process • Service offering includes: – Diagnosis of current HR systems and processes – Process redesign and improvement measures – HR policy design – Service delivery model design and implementation – Sourcing strategy development and implementation • Mercer’s strength – End-to-end value chain offering, from diagnosis to design to implementation support – Specific focus on the HR function; expertise and knowledge behind consulting HR Operations Scanner Samples – Global reach and resources Process Manual Sample – Quantitative approach; supported by best-of- breed methodologies MERCER 47
  • 49. Employee engagement Mercer’s Six Factor Framework and drivers for engagement • Service offering includes: – Mercer’s employee engagement survey based on the ‘Cause-Effect’ model of engagement. (Mercer’s Proprietary Six Factor Framework based on 13 drivers of engagement) – Aimed at gaining a deeper understanding of employee perceptions on various aspects within an organization. Four phases of Mercer’s Employee Engagement Model • Mercer’s strength – End-to end solution provider: survey conduct- analysis- action plan design- implementation assistance – Experience of conducting engagement surveys with large scale as well as small scale organizations – Over 3,000 employees surveyed till date in India – Benchmarking survey results with Mercer’s What’s working database and Mercer BT survey MERCER 48
  • 50. Registered Office: 70 / 39 B, 2nd Floor, KLJ Complex, Opp. Motinagar Police Station, Najafgarh Road, New Delhi - 110015, India