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Similar to PwC FINAL Fall 2015 Presentation
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PwC FINAL Fall 2015 Presentation
- 1. Fall 2015 PricewaterhouseCoopers Excel Insurance Inc.
- 2. Team Juan Aguila Junior Finance & Spanish Off Campus Louis Liu Sophomore Finance Stanford Hall Ron Park Freshman Economics & ACMS Keenan Hall James Ko Sophomore Accounting Sorin Hall Griffin Over Freshman Finance & Spanish Carroll Hall Julia Perry Freshman Undeclared Business Major Walsh Hall Christian Brunner-Lopez Freshman Finance Dillon Hall Natalie Mayer Sophomore Undeclared Business Major Journalism Minor Walsh Hall Rudolph Bernard Sophomore Undeclared Business Major & Spanish Zahm Hall 2 Matthew Arnason Freshman Economics & ACMS Morrissey Manor
- 3. Student International Business Council Mission Founded in 1989, SIBC is the largest student-run organization on campus and seeks to fulfill its vision of Peace through Commerce by interacting with global companies and organizations, while educating its members and the Notre Dame community on the different aspects of international business. Accounting Finance Consulting Marketing Social Entrepreneurship 3
- 4. Executive Summary Background Excel Insurance Inc. is currently known for its traditional work environment and conservative policies surrounding human capital. Situation Excel Insurance Inc. is facing a large demographic shift in its human resources: 75% of Excel Insurance Inc.’s workforce will be Millennials. Problem What progressive strategies can be implemented so that Excel Insurance Inc. can change its traditional corporate culture to one that is more progressive that will retain and motivate its growing percentage of millennial employees? Recommendation 4 • Provide workplace flexibility and mentoring • Construct a progressive brand that upholds corporate social responsibility • Offer merit-based compensation and benefits
- 5. Agenda Company Overview Industry Demographics Millennial Research Recommended Strategies & Comprehensive Case Study Implementation & Impact on Company 5
- 6. COMPANY OVERVIEW & INDUSTRY DEMOGRAPHICS 6
- 7. Company Overview • US life insurance company • Fortune 500 company • “Star” in the insurance industry • Attracts highly qualified workers • Known for its traditional work environment and conservative policies • Imminent significant change in human capital makeup • HR survey on 2018 projection: millennials will make up 75% of Excel Insurance Inc.’s workforce • Compelling need to shift from a traditional corporate culture to one that is more progressive • Current company environment structured for baby boomers, but there will be a majority of millennials in the near future ConservativeCulture •Utilitarian approach: results over process •Risk averse: discourage new ideas and innovation •Cubicle physical office layout •Infrequent evaluations RigidStructure •Top-down hierarchical system •Rigid process of projects and assignments •Each employee only focuses on a single field with no cross-training FormalAtmosphere •Separation between work and personal life •Inhibits relationships and engagement between coworkers Description Workforce Demographic Current Workplace Environment Issue 7
- 8. Source: Insurance Information Institute, US Bureau of Labor Statistics, the Griffith Insurance Education Foundation, CompData Surveys Employee Demographics of the Insurance Industry Percentage of Employees by Age • Industry needs higher level of education • Requires licenses and certification • Millennial survey: less than five percent were interested in the industry; 44 percent said the industry is “boring” • Low turnover rate: 11.7% (Average: 15.7%) • Proportion in industry will decline, but a significant number will remain in management Less Attractive Industry for Millennials Important Presence of Baby Boomers Because the insurance industry is unattractive to millennials and there is a low proportion of this demographic, there is an even greater need for Excel Insurance Inc. to adapt to the changing workforce. 8 0% 5% 10% 15% 20% 25% 30% 16 to 19 years 20 to 24 years 25 to 34 years 35 to 44 years 45 to 54 years 55 to 64 years 65 years and over Percentage(%) Insurance carriers and related activities Financial activities Total, all industries Millennials Baby Boomers
- 10. Millennial Research • 75.3 million individuals born between 1982-2000 • Will make up 46% of the workforce by 2020 • Technologically savvy, self-confident, well educated, and skilled at multi-tasking • Creative and team oriented • Strongly considers company social responsibility when looking for employment • Desire to learn and progress as employee 0% 2% 4% 6% 8% 10% 12% 14% 16% Oil and Gas Defense Insurance Government and Public Service Chemicals Forestery Banking and Capital Markets Metals Healthcare As a growing company, Excel Insurance Inc. could retailor its company culture to become more attractive to millennials in order to retain them over time. An effective shift in corporate values and ideals would give Excel Insurance Inc. an advantage over its competitors and allow it to create organic growth as a whole. • Collaborative culture involving group projects • Flexible workplace in terms of work location and hours • Frequent feedback in order to progress within company • Clear progression path within organization Ideal Millennial WorkplaceRealities of Millennials Background Information on Millennials Least Attractive Sectors for Millennials 0% 20% 40% 60% 80% 100% People-savvy Tech-savvy Loyal to employers Fun-loving Hard Working HR Professionals Millennials Source: Pew Research, Deloitte Millennial Survey, PwC NextGen Survey 10
- 11. Source: Pew Research, Deloitte Millennial Survey, PwC NextGen Survey Millennial Research • Millennials are open to diversifying their compensation packages • 41% of millennials want monthly recognition and rewards • Strong desire for transparency and ability to view where value is coming from within organization • Value company values over monetary compensation 30% 29% 26% 15% Flexibility Corporate Citizen Corporate Culture Salary In order to adapt to millennials’ preferences, Excel Insurance Inc. could focus on changing its company image, creating leadership paths, and establishing a brand that creates a sense of purpose for its employees. Compensation Aspects Millennials Look For in Employers • 75% of millennials believe businesses are focused on their own agenda rather than improving society • Businesses should focus more on people rather than profit • Value a sense of purpose and validation from their employer • 50% of millennials see a lack of leadership development 0% 10% 20% 30% 40% 50% 60% Opportunities for Career Progression Competitive Wages Training and Development Benefits Package Flexibility International Opportunities Reputation for Ethical Practices Corporate Values Repuation as Employer Brand Attractive Employer Characteristics Beliefs of Millennials 11
- 12. RECOMMENDED STRATEGIES & COMPREHENSIVE CASE STUDY 12
- 13. Source: CNN Money, Harvard Business Review, Washington Post Strategy 1: Company Policies and Incentives Reverse Mentoring •Shifts mentoring role to millennial employees •Serves as window into the higher levels of the organization Group Mentoring •Technology platform that allows employees to define their own mentoring •New hires get up to speed more quickly Anonymous Mentoring •Uses psychological testing and background reviews to match mentees with mentors •Both parties remain anonymous Excel Insurance Inc. could change company policies to include greater workplace flexibility, mentoring programs, frequent feedback, and opportunities for advancement to retain millennials. • Millennials place substantial value on flexibility in the workplace • Offer work-hour flexibility by asking new hires about their preferred work • Encourage employee flexibility in the conversations between employee and new-hires • Give millennial workers the option to work remotely on occasion for increased productivity • Millennials want frequent feedback in order to move within an organization • Offer opportunities for advancement • More promotions and raises • Advancement broken into smaller jumps • Increase transparency through employee surveys • Give more frequent, qualitative assessments • Millennials want a clear path to success and expect their companies to provide it • Implement mentoring programs that suit millennials’ mobile, collaborative lifestyle and need for immediacy Workplace Flexibility Incentives and Feedback Mentoring Programs 13
- 14. Source: ConeCommunications, IpsosSMX Strategy 2: Branding and Impact 0 20 40 60 80 Visit the Official Website Follow Official Company Page Flag/Save Web Link for Future Reference Share Photo or Video on Company Response Rate (%) • 2013 Cone Communications Social Impact Study • Millennials respond with increased loyalty (91%) and trust (89%) • Corporate Social Responsibility influences millennials’ personal decisions i.e. where to work (78%) • Greater likelihood to spend on companies products • CSR promotes millennial retention • 3 in 4 millennials use social media • Ipsos SMX Community Research Study • 78% of millennials discover brands through social media sites • 68% visit the company’s official website • Importance of exhibiting a visually purposeful website to impact millennials 50 60 70 80 90 100 Trust Loyalty Spending Workplace ResponseRate(%) Traits Affected by CSR Social Responsibility Effects Excel Insurance Inc.'s branding strategy could address millennials’ desires for corporate social responsibility and their technological abilities for millennial employee retention. Impact of Website on Branding 14
- 15. Source: Forbes.com, brandingstrategyinsider.com Strategy 2: Branding 1 2 3Company Image Corporate Responsibility Visual Website In accordance with millennials’ desires for career progression, social impact, and their tech-savvy abilities, Excel Insurance Inc. could follow these three areas of impact in their branding strategies to allow millennials to assimilate into their company. 15 Current: Traditional elite life insurer Millennials Seek: Progressive corporations, open workplace, communication with officers Improvements: -Show career paths with promotion -Make physical changes in workplace, and make them visible to the public eye -Communicate more progressive values throughout company Current: Minor involvement through donation Millennials Seek: 75% find it important that a company gives back to society Improvements: -Show support for local community in publicity -Have one key social project per year endorsed by Excel Inc. -Create image that associates Excel with social values Current: Standard layout with underlined hyperlinks Millennials seek: Interactive website, ease of use, visual navigation, highlight their workplace Improvements: -Incorporate expressive images, such as links -Include “Request a Quote” on the front page -Simple pop out and drop down menus
- 16. Washington Post Liberty Mutual Group Captrust Advisors Strategy 3: Compensation and Benefits Volunteer-Oriented Programs • Offer outside volunteer-oriented programs through the company • Have an annual company-wide volunteer day • Give option of donating a portion of payroll to charity Monetary Bonuses • Issue additional bonuses upon review • Reward based on years of loyalty • Offer potential of bonus upon project completion • Provide qualitative feedback Community Programs • Prioritize social events to build up community within company • Provide physical and mental health programs • Offer support groups for parents at the company • 76% of millennials prioritize retirement benefits • Match 50% of employee contributions up to 8% • Provide additional retirement plan resources • As an insurance company, offer employees subsidized health and life insurance In accordance with the millennial values of incentives and work-life balance, Excel Insurance Inc. could prioritize nontraditional monetary compensation plans and additional programs that appeal to millennials. • Traditionally, promotion is given based on seniority • Millennials desire compensation for performance merit • Give incentive for hard work through rewarding higher quality performance • Provide frequent, qualitative feedback so workers know how to progress Pay-for-Performance Compensation Retirement Benefits 16 Volunteer-Oriented Programs
- 17. Source: Bentley University Liberty Mutual Group Acuity Consulting Case Studies Liberty Mutual Insurance • Regularly hires and retains 300 new millennial employees each year • Lengthy onboarding processes and training programs • Formal mentorship (includes executives and peers) • Feedback-centric workplace environment Promote- from-within culture •Several senior managers got their start in entry-level roles Pay-for- performance compensation •Each employee’s performance and pay is reviewed annually •Delivers above market pay through a merit increase if an employee performs well •Significantly above market pay for exceptional performance over time Volunteer programs •Give with Liberty •Serve with Liberty Acuity Insurance • 98% employee rating for atmosphere • 97% employee rating for communication • Perks of free snacks, massage therapy, discount ticket sales • On-site flu shots and fitness center, subsidized lunches, and offsite gym memberships Communal Company •Lunch with an Officer: 10-15 employees meet with an officer to offer feedback and suggestions •5 year club: employees who have worked for 5 years or less are invited to social events Retirement Benefits •401k program features 8% contribution to employee accounts •Offers 10% contribution in employee’s final years Wellness programs •Acuity’s A-Team Club •Option of athletic events and activities •Offers outdoor walking paths and weekly Weight Watchers Work program 17
- 18. IMPLEMENTATION & IMPACT ON COMPANY 18
- 19. Source: Wall Street Journal , Lawrence Weiss Berges Lecture, Implementation Communication is Key Resistance to Change Current Leadership Worries Risk Aversion Conservative baby boomer management will question whether these new policies are necessary If promotions are given more regularly, current influential managers will fear for their jobs Implementing culture change is often difficult and costly: human resources, information technology Necessity of Change • Need to attract and retain excellent talent • Staying competitive • Enhancing consumer perception Promotion Solutions • Promote employees in smaller jumps to recognize excellent performance • Emphasis on performance rather than seniority • Tone at the top vs. mood in the middle • Understand worker sentiment • Focus on hot spots Reasons for Resistance Championing Change 19 Although there would be initial resistance to the company’s proposed changes, compelling advantages of the reforms could convince Excel Insurance Inc.’s conservative management to adapt to the workforce demographic change.
- 20. University of Illinois Telecommuting Study, Impact on Company Implementing these reforms would increase levels of productivity and happiness of the employees, leading to higher employee retention and motivation within Excel Insurance Inc. Before Implementation • Traditional 9 to 5 workday in the office • Advancement upon getting older as opposed to talent-based promotions • Cookie-cutter performance assessments After Implementation • Employees looking to prove themselves, higher productivity • Commitment to overall excellence • Sense of community in the office due to mentoring • Better knowledge of how to improve and advance Before Implementation After Implementation • Traditional, hierarchical workplace • Social impact is not a strict goal • Out-of-date websites and marketing • Promotions given based on seniority • Regarded as a progressive, concerned company • Employees achieve sense of belonging and pride • Employee satisfaction is a priority • A destination for great talent Strategy 1: Policies and Incentives Strategies 2 and 3: Branding Reform and Compensation 20
- 21. QUESTIONS? 21
Editor's Notes
- Dorms and undecided vs undeclared
- Before we present our research with our solutions, first we are going to give an executive summary. The background case is Excel Insurance company and it is known for its traditional work environment and conservative policies surrounding human capital. Now, Excel is facing a huge demographic shift in its workplace. This is highly due to an increasing number of millennial workers Because of this situation, Excel wants a solution and strategy to help it adapt to this demographic shift So, we came up with 3 solutions. Basic outline of those 3 solutions are first, provide workplace flexibility and mentoring Second, promote a progressive branding that upholds social values. Lastly, improve on compensation and benefits that will satisfy the workers.
- - Match the section pages to the same titles as the Agenda slide.
- Following an industry overview, we are going to give a brief description of Excel Insurance and how the workplace will look like under the traditional environment. The basic description is like this. It is a life insurance company in US. It is highly regarded as a top player in insurance industry since it is listed on Fortune 500 and also a STAR in its industry. And now, Excel upholds a traditional work environment and conservative policies surround human capitals. Human capitals are comprised of only high qualified and best workers Next, Workforce demographic shows an increasing number of Millennial workers compared to past record and the prospective for 2015 is that 75% of millennial workforce will make up company human resource department. SO WE CAN SAY THAT THERE WILL BE MPRE MILLENNIAL WORKERS THAN IT EVER HAD Given this shift, Excel now seeks the right way to adapt to this change, which will include more progressive corporate culture than before. How Excel looks now can be explained by the upper left picture. This shows a structure in a traditional workplace. It will be discussed shortly and we will first see the culture. Culture: Do not give a value to the means to approach the end Risk averse very conservative prefer to stick with the old fashioned way Each employees work in their own space, not cooperatively Annual evaluation culture no immediate feedback or compliment Structure: Hierarchial - no discretion for employee it is like do what I tell you to do you shall not do it on your own way. Because of this relationship- there will be a rigid structure of projects So, each employee will not have a chance to understand the project as a whole Atmosphere: Do not give a considerable attention to work-life balance. When It is impossible to separate those two Tend to discourage group and collaborative work. Now to millennial research.
- Industry revenue may not be relevant because it does not tell us much in connection to the prompt: how can excel insurance retain its millennial employees Explain the factors as to why employee volume is decreasing for the industry: if it is related to how insurance companies are struggling to retain millennial employees, then keep this graph; if it is just about financial services industry being more attractive for money, then do not include (key: relate to prompt) Definitely keep “percentage of employees by age” graph, elaborate with text boxes
- Include sources
- - Need to make bottom left information visible
- Blank space of rightmost smartart Have a textbox at the top that explains how these discussed points correspond to millennial research ex. “In accordance with how millennials want a close relationships with their bosses, excel should have mentor programs” PwC likes to have a takeaway box at the top
- According to the 2013 Cone Communications Social Impact Study, when companies support social and environmental issues, Millennials respond with increased trust (91 percent) and loyalty (89 percent) as well as a stronger likelihood to buy those companies’ products and services (89 percent). -3/4 Millenials use social media and discover brands through this
- - Have a textbox at the top that explains how these discussed points correspond to millennial research ex. “In accordance with how millennials want a close relationships with their bosses, excel should have mentor programs” PwC likes to have a takeaway box at the top PwC likes this layout PwC gives the go-ahead to use screenshots of other insurance company’s websites! Can make whatever assumption about social impact
- - Have a textbox at the top that explains how these discussed points correspond to millennial research ex. “In accordance with how millennials want a close relationships with their bosses, excel should have mentor programs” - PwC likes to have a takeaway box at the top Make sure that strategies do not overlap with others Fill in white space with more info
- again, takeaway box at top Again, have textbox at top explain how correspond to millennial research
- - Add to “necessity of change:” especially because an insurance company is not like a consulting company, which has a high turnover because consultants end up working for clients, an insurance company needs to make sure to retain its millennials Enacting such sweeping changes will certainly be met with some resistance. Since Excel has been doing so well for so long, people will ask why changes are necessary. If more promotions are given out earlier, current influential upper-level employees will worry about the possibility of being replaced, and enacting cultural change in such a historical company certainly has its risks Necessity of Change: In order to attract and retain more talented, younger employees, Excel must become more desirable through these changes Competition: Excel must keep up with more progressive rivals, such as Liberty Mutual and Arbella Consumer Perception: Consumers prefer doing business with responsible corporate citizens, and implementing change to help employees will certainly benefit that perception. Staying in touch with future consumers is also positively affected because younger workers will be better able to relate to younger consumers Promotion Solutions: Promotions do not need to completely change an employee’s job, but rather must acknowledge their improvements. Perhaps give them slightly more responsibility in group work Traditional hierarchy leads to complacency and routine; collaborating enhances creativity and problem-solving This collaboration will give the flexibility for each member to use his or her strengths, leading to an overall more effective team Communication is Key Tone at the top…: Executives and local managers must be on the same page in order to effectively enact change, because workers report to their most immediate boss Understanding what employees are feeling about a change is important to improving it and ensuring it stays. Therefore interviewing thoughtful and influential employees for their ideas is hugely helpful Hot spots are parts of a business that require few resources to enact large change. An example could be providing a community outreach day to give employees a connection with the community
- Before implementing the first strategy, Excel is still seen as a very traditional workplace, where employees are in the office every day from 9 until 5, doing the same thing day in and day out, with the same performance assessments being given to them. In many such companies, advancement and promotions are only given based on seniority, which leads to complacency and lethargy. After implementing this strategy, mentoring programs will lead to more a community feel in the office and more qualitative assessment reports will help employees know how to improve. Despite popular belief, allowing employees more workplace flexibility actually leads to higher levels of production because the employees see this as a privilege and want to prove that the arrangement is not hurting them. Finally, promotions based upon advancement will lead to an overall commitment to excellence, which will go a long way in terms of motivating workers to do their best. Before reforming Excel’s brand recognition and compensation and incentive policies, the company is seen as a hierarchical workplace that really caters to the older members of the company. Furthermore, there exists a feeling of apathy regarding both its surrounding community and rewarding its employees. Afterwards, however, Excel will appeal to millennial workers because it will be seen as being concerned about the happiness of its employees, doing what it can to improve their situation, and about their surrounding community. This will lead to a sense of pride and belonging amongst employees regarding Excel. Finally, as Excel’s advancement policy is changed, younger workers will see that talent is rewarded, thereby marking the company as a destination for great talent, attracting the best young workers. Together, these changes will both enhance millennial satisfaction based on their earlier described preferences, leading to increased employee retention, and increase Excel’s overall success due to more involved and productive employees.