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How a Successful Employee Experience Will be Defined in the Future
The document discusses the future of employee experience, highlighting its importance in attracting and retaining talented individuals in a competitive job market. It outlines five key strategies for creating a successful employee experience, including defining a clear mission, understanding talent, offering comprehensive rewards, adopting value-sharing practices, and treating employees as growth partners. The presentation emphasizes the necessity for proactive engagement with employees to foster a high-performance culture that aligns company goals with individual contributions.
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How a Successful Employee Experience Will be Defined in the Future
- 1. How a SuccessfulEmployee Experience Will Be Defined in the Future
- 2. 22 Today’s Presenter: Ken Gibson SeniorVicePresident (949) 265-5703 kgibson@vladvisors.com 23201 Lake Center Drive, Suite 207 ⬧ Lake Forest, CA 92630 ⬧ 949-852-2288 www.VLadvisors.com ⬧ www.PhantomStock.com
- 3. How a SuccessfulEmployee Experience Will Be Defined in the Future
- 4. 44 We’re happy toprovide a copy of today’s slides. To open or close the control panel: Click the red arrow For questions during today’s presentation: Use the question area on your control panel Webinar Q: Are the slides available? A: Yes, more info will be provided at the end
- 5. 55 Take advantage ofa one-half hour consulting call with a VisionLink principal at no charge. Indicate interest on final survey. Consultation Offer & Survey Request a copy of our slides and complimentary consultation. We value your input.
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- 7. 77 Since1996 VisionLink has beenadvising business leaders on how to create a high-performance culture and turn employees into growth partners. We have seen first-hand the solutions and strategies that work. In this broadcast, we plan to share what we have learned with you.
- 8. 88 Post Webinar Intro 5Minutes: Who We Are What We Do How We Do It
- 9. 99 23201 Lake CenterDrive, Suite 207 Lake Forest, CA 92630 (888) 703 0080 www.vladvisors.com www.phantomstock.com www.bonusright.com Headquartered in Lake Forest, CA Founded in 1996 Over 600 clients throughout North America
- 10. 1010 Key Questions Howwould you describe the kind of experience you want your employees to have at your company? Now, how would your employees define the kind of experience they are actually having?
- 11. 1111 Why it Matters Your employees control the kind of experience your customers will have with your company Your employees are your best source for attracting new talent Your employees will determine whether your business will thrive or stall as you head into the post-COVID future. Your employees will choose whether to become growth partners or growth inhibitors.
- 12. 1212 But… Shouldn’t employees be happyjust to have a job? It’s not 2008. This is different.
- 13. 1313 Prior to COVID-19 2016Key Prediction By 2020, the worldwide shortage of highly skilled, college-educated workers could reach 38 to 40 million, or 13% of demand. (Source: McKinsey Global Institute)
- 14. 1414 Then… “A January 2018survey of 1,000-plus C-suite executives found that attracting and retaining talent is their number-one concern, outranking anxiety over the threat of a global recession, trade war, and even competitive disruption.” (Moneyball for Business, Fast Company, September 2018, Austin Carr)
- 15. 1515 Do You ReallyNeed to Worry? “Nearly 70% of business leaders participating in a new global survey said the current talent pool is shrinking. As a result, the competition for talent has increased, forcing employers to change their recruiting strategies.” (“Study: Shrinking Talent Pool Has Recruiters shifting Strategies,” HR Dive, October 5, 2018, Valerie Bolden-Barrett)
- 16. 1616 Did the PandemicChange This?
- 17. 1717 Evidence How many ofyour key performers—people who are true catalysts and strategic leaders—have you laid off since COVID-19?
- 18. 1818 Why the EmployeeExperience Matters In a talent market that has a shrinking pool of skilled labor, where will employers look for new talent? No one can afford to passively wait until the right talent appears. They have to proactively pursue the people they need—and create an environment that will draw them in.
- 19. 1919 Conclusion There is muchriding on the kind of experience employees have with your company.
- 20. 2020 5 Keys toa Successful Employee Experience 1. Have a Clear Mission 2. Know Your Talent 3. Offer a Total Rewards Opportunity 4. Adopt a Wealth Multiplier Philosophy 5. Treat Employees as Growth Partners
- 21. 2121 1. Have aClear Mission Simplicity My Company My Team My Role
- 22. 2222 Commander’s Intent The Commander’sIntent is a simple, no- nonsense statement that appears at the top of every order, specifying the plan’s goal and the desired outcome of an operation.
- 23. 2323 What isYour Commander’sIntent forYour Organization?
- 24. 2424 Chartering Teams Teams Understand: Mission Context Outcomes Resources Data Reporting Accountability
- 25. 2525 Chartering Conversation “A charteringconversation…is based on the premise that genuine commitment is a choice. Sharing information is still important, but the focus shifts from “nice-to-know” updates to providing critical context, so leaders and teams can craft mutual agreements tied to a common mission. As a concept, the process of negotiating a charter prompts managers to be clearer about what they are asking of their teams, and to listen more actively to what their teams need from them in order to deliver.” (“How to Help Your Employees Own Your Strategy,” Strategy+Business, February 6,2020, Elizabeth Doty)
- 26. 2626 For Roles, PromoteStewardship
- 27. 2727 Stewardship A willingness to“own” the outcomes your role exists to produce.
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- 30. 3030 Signs of EmployeeStewardship Assume an ownership mindset in decision making Take a strategic approach to their roles Focus on outcomes and results Protect shareholder interests Expect to create additional value before receiving additional compensation Make sacrifices to help the company succeed
- 31. 3131 Focus on Lineof Sight Creating alignment
- 32. 3232 What is Lineof Sight? The ability of employees to see the relationship between: Company Vision Business Model & Strategy Priorities Roles & Expectations Rewards
- 33. 3333 How Do YouMeasure Line of Sight? Have employees to answer five questions: What is the company’s vision and purpose? What is the company’s business model and business strategy? What are our organization’s most pressing priorities right now? What is your role in our business model priorities and what outcomes are you responsible for? How will you be rewarded for fulfilling those outcomes?
- 34. 3434 2. Know YourTalent The starting point of defining an employee experience
- 35. 3535 Talent Assessment Defineskill “categories” needed to drive business model Identify gaps Form recruiting & retention strategy
- 36. 3636 Talent Alignment Align People,Roles & Business Model Have top performers working in roles that maximize their unique abilities Avoid placement in roles that don’t have a strategic impact
- 37. 3737 Recruit to aRole (Not a Position) Position: characterized by specific duties you need someone to carry out. Role: defined by outcomes and stewardship. Positions are filled. Roles are fulfilled.
- 38. 3838 Millennial Career Segments Launchers Accelerators Catalysts
- 39. 3939 Launchers Many justleft the university 1st or 2nd career job Most are single
- 40. 4040 Accelerators Experience withmore than one company Desire to rise in ability, recognition, contribution and influence. Many single but a growing number are married and are starting families
- 41. 4141 Catalysts Mid-30s Meaningfulexperience Unique abilities Able to affect significant (positive) change Companies are competing for their talents Have leverage Many married and have children
- 42. 4242 3. Offer aTotal Rewards Opportunity Compelling Future PositiveWork Environment Opportunities for Personal and Professional Growth Financial Rewards
- 43. 4343 4 Reasons PeopleRemain or Join a Company Compelling Future PositiveWork Environment Opportunities for Personal and Professional Growth Financial Rewards
- 44. 4444 Compelling Future Thecompany’s purpose and mine are aligned. I see myself in the company’s future. I have a “seat at the table” in determining the direction of the company. I like the direction the company is headed. I embrace the company’s values. I believe the company can achieve its growth goals.
- 45. 4545 Positive Work Environment I like the nature of the work I’m doing. I am working within my unique ability. My responsibilities have strategic purpose. I work in a team of individuals with complementary skills. There are channels and processes for solving problems and decision making.
- 46. 4646 Personal and ProfessionalDevelopment As a result of my immersion in the culture and resources of this organization, my unique abilities will improve—and I will experience personal and professional fulfillment.
- 47. 4747 Financial Rewards Ihave some control over how much I can earn if I produce. I feel a sense of partnership with ownership. There is a philosophy that guides pay decisions and I relate to it. There is a mechanism for sharing value with those who help produce it.
- 48. 4848 Understand the Employees’View of Pay How do employees look at compensation and what matters to them?
- 49. 4949 6 Reasons EmployeesCare About Pay Personal 1. Lifestyle & Wealth Accumulation 2. Career Measurement 3. Contribution Ambitions Business 4. Roles, Expectations & Priorities 5. Partnership 6. Continuity & Fairness
- 50. 5050 Reason # 1Lifestyle & Wealth Accumulaton
- 51. 5151 Reason # 2Career Measurement The pay level and programs in which an employee participates become a means of measuring where that person is in their career and where they need to go next.
- 52. 5252 A Comparative Exercise “Ismy pay offering equal to or better than my peers?” If not, the employee will do one of two things: ▪ 1) Determine has not yet developed the skills needed to attain the career level of peers ▪ 2) Determine you do not fully recognize what a person of that talent and ability should be paid at this stage of professional development.
- 53. 5353 Reason # 3Contribution Ambitions Personal Vision Most growth-oriented people aspire to make certain contributions in their personal and professional lives. The ability to achieve their contribution goals is the source of their motivation.
- 54. 5454 Contribution Ambitions Different forEvery Individual Causes and Charities Children’s Education Family Well-Being Freedom to Build Something Control Over Time & Commitments Vary by generation. Vary by career stage.
- 55. 5555 Reason # 6Continuity & Fairness Is there operational integrity between mission, vision, strategy, roles, expectations, results and rewards?
- 56. 5656 Build Operational Integrity “Employeeshave a positive experience in the workplace when they observe authenticity in the way company owners and leaders deal with the people employed by them and there is operational integrity in all aspects of the business. This creates a high trust, high confidence culture where individuals are not distracted by concerns about their place in the organization. Over time, that kind of culture creates its own momentum because the employees become the enforcers of the organization's performance standards, not just the company leaders….
- 57. 5757 Allies or Adversaries “Sooneror later, your people will decide either to become your allies or your adversaries. They can help you achieve your goals or they can sabotage them. If they choose to do the latter, they will probably leave, but not before doing significant damage. And once they go, they will share the negative experience they had with your company with anyone who will listen; some of whom may be the very people you want to recruit.“(3 Reasons You Must Pay Attention to Employee Engagement, VisionLink blog, June 13, 2019)
- 58. 5858 The Trust Dividend Strategyx Execution=Results (Strategy x Execution) x Trust=Results (Source: The Speed of Trust, FranklinCovey, February 5, 2008, Stephen M.R. Covey)
- 59. 5959 4. Adopt aWealth Multiplier Philosophy
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- 61. 6161 Core Changes Shiftfrom “Incentives” to “Value Sharing” Took away local measurements driving management incentive plans—all paid on same metrics ▪ “We live together and we die together” Aligned everyone behind company success ▪ “I call it ‘pay the company first.’ ” 61
- 62. 6262 Pay the CompanyFirst “Basically, up to the company’s operating profit target, all of the profits go to the company; and only after that target is met, do we start funding the incentive pool.” Example: If UL’s target is $80 million-- 100% of first $80 in profit goes to company The next $20 million goes to the incentive pool From there on, 50/50 between company & incentive pool
- 63. 6363 Pay the CompanyFirst Once value creation is defined, compensation can follow a formula for sharing value in a way that aligns key producers with the company’s business plan and priorities. 63
- 64. 6464 Replace Incentives withValue-Sharing The premise should be to promote value creation and value-sharing: ▪ “When you help us create value you participate in that value” ▪ Define value creation around the shareholders’ most important goals
- 65. 6565 Productivity Profit The Secretto Measuring Value Creation
- 66. 6666 Productivity Profit Calculation ItemAmount Capital Account $20,000,000 Cost of Capital 12% Capital Charge $2,400,000 Operating Income $10,000,000 Productivity Profit $7,600,000 Total Rewards Investment $25,000,000 ROTRI™ Return on Total Rewards Investment 30.4% (ROTRI™ = Productivity Profit/Total Rewards Investment) 66
- 67. 6767 Example: Item Figure Capital Account$20,000,000 Cost of Capital 12% Capital Charge $2,400,000 Operating Income $10,000,000 *Productivity Profit $7,600,000 Total Rewards Investment $25,000,000 ROTRI™ 30.4% (ROTRI™ = Productivity Profit/Total Rewards Investment) *Variable Pay Plans (Value Sharing) are financed from Productivity Profit 67
- 68. 6868 Result: Unlimited EarningsPotential Item Figure Capital Account $20,000,000 Cost of Capital 12% Capital Charge $2,400,000 Operating Income $10,000,000 *Productivity Profit $7,600,000 Total Rewards Investment $25,000,000 ROTRI™ 30.4% (ROTRI™ = Productivity Profit/Total Rewards Investment) *Variable Pay Plans (Value Sharing) are financed from Productivity Profit 68
- 69. 6969 Special Offer The ProductivityProfit Workbook Request your copy on the final survey.
- 70. 7070 5. Treat Employeesas Growth Partners
- 71. 7171 How to Focuson the Future Here’s the short-term picture Here’s our vision for the future. Here’s how we plan to get there. Here’s the role we need you to perform. Here are the resources you will be able to use. Here’s our philosophy about pay and rewards. Here are the specific pay programs you’ll participate in. Here’s how our pay programs will work for you if we achieve our plan.
- 72. 7272 Employee Value Statement Year1 2 3 4 5 Targeted Results 100% 100% 100% 100% 100% Salary $160,000 $166,400 $173,056 $179,878 $187,177 STVS $64,000 $66,560 $69,222 $71,991 74,871 LTVS (EOY) -- $74,000 $186,000 $311,000 $448,000 401(k) @7% $17,120 $36,123 $57,169 $80,428 $106,086 Total Cash $224,000 $232,960 $242,278 $251,970 $262,048 Wealth Accrual $17,120 $110,123 $243,169 $391,428 $554,086 Total Value $241,120 $567,083 $942,407 $1,342,636 $1,767,343
- 73. 7373 Compensation Offering Togrow your business, you need a high-performance culture. To create a high-performance culture, you need top talent. To attract top talent, you need an irresistible value proposition. And to create an irresistible value proposition you need a compelling pay offer. Your compensation offering defines the financial partnership you wish to have with your employees.
- 74. 7474 5 Keys toa Successful Employee Experience 1. Have a Clear Mission 2. Know Your Talent 3. Offer a Total Rewards Opportunity 4. Adopt a Wealth Multiplier Philosophy 5. Treat Employees as Growth Partners
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- 76. 7676 Digital platformfor building short and long-term value sharing plans Efficient plan design process Affordable plan design cost Effective plan launch material Superior ongoing plan management
- 77. 7777 Introducing: The TotalRewards Assessment Tool
- 78. 7878 BonusRight Demo Additional SpecialOffer for Webinar participants Free Total Rewards Assessment Select “YES” on survey—or contact Melissa at msamaroo@vladvisors.com
- 79. 7979 Take advantage ofa one-half hour consulting call with a VisionLink principal at no charge. Indicate interest on final survey. Request a copy of our slides and complimentary consultation. We value your input. Consultation Offer & Survey
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- 82. 8282 Special Offer The ProductivityProfit Workbook Request your copy on the final survey
- 83. Special Offer What isan Employee Value Proposition? Request your copy on the final survey.
- 84. 8484 Post Webinar Intro 5Minutes: Who We Are What We Do How We Do It
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- 86. 8686 Today’s Presenter: Ken Gibson SeniorVicePresident (949) 265-5703 kgibson@vladvisors.com 23201 Lake Center Drive, Suite 207 ⬧ Lake Forest, CA 92630 ⬧ 949-852-2288 www.VLadvisors.com ⬧ www.PhantomStock.com ThankYou!
- 87. 8787 Post Webinar Intro 5Minutes: Who We Are What We Do How We Do It
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- 90. 9090 VisionLink’s Focus: HelpBusiness Leaders Build and Sustain a High Performance Culture Accelerate performance through pay strategies that transform employees into growth partners.
- 91. 9191 If you dothat… • Quality of talent will improve. • Employee engagement will expand. • Performance will be magnified. • Business growth will be accelerated. • Shareholder value will increase.
- 92. 9292 Today’s Presenter: Ken Gibson SeniorVicePresident (949) 265-5703 kgibson@vladvisors.com 23201 Lake Center Drive, Suite 207 ⬧ Lake Forest, CA 92630 ⬧ 949-852-2288 www.VLadvisors.com ⬧ www.PhantomStock.com ThankYou!