Mary Mosqueda presented on using a total rewards strategy to engage a multigenerational workforce. She discussed the importance of a total rewards strategy in attracting and retaining talent across different generations. The presentation covered assessing employee needs, analyzing total rewards programs, designing a strategy that links programs to business goals, and communicating the strategy using various channels tailored to different generations. The presentation included examples of total rewards elements, sample strategies, and ways to assess current programs. Q&A and additional resources were provided at the end.

1. Using a Total Rewards
Strategy to Engage a
Multigenerational
Workforce
Guest Presenter: Mary Mosqueda
Practice Leader
Lockton
TalentTakeaways
webinar & podcast series

2. AGENDAThe Series
TalentTakeaways
webinar & podcast series
Talent Takeaways Series

3. AGENDAAGENDA
✓ Resource Library
✓ Product Information
✓ Product Tour & Demo
The Sponsor
Talent Takeaways Series
Talent Management Made for Managers

4. AGENDAWebinar Info
Talent Takeaways Series
✓ We are informal (and fun)
✓ Ask Questions!
✓ Q&A Session at end
✓ HRCI & SHRM Credits
✓ Slides will be available after

5. AGENDAAbout the Presenter
Talent Takeaways Series
Mary Mosqueda is the Practice Leader for Lockton
Companies Compensation Global Consulting Practice
and is an in-demand national speaker on total rewards
and compensation. With over two decades of
experience in compensation, human resources, and
work/life programs, she has been a key contributor in
the strategic development of public and private sector
executive compensation and total rewards programs
that attract and retain top talent.
She assists clients with strategy, design, funding,
administration, and communication of total rewards
programs and incentive compensation plans—
including annual and sales programs, executive and
board compensation negotiation, total remuneration
for international and expatriate compensation, pay-
for-performance systems, and work/life programs.

6. 5
Why Total Rewards?
❖ Shortage of skilled workers to fill projected needs (IT, Engineering)
❖ Current employees are not fully engaged
❖ Cost-shifting in company-sponsored health benefit plans
❖ Flat or shrinking salary adjustment pools
❖ Generational workforce diversity—different perceptions and needs

7. 6
What is the Purpose of a Total Rewards Strategy?
❖ Reinforce the core mission and vision of the organization
 How does that tie to the HR Strategy?
❖ Define what the core elements will create appropriate competitive advantage
❖ Provide clarity for talent management decisions to key stakeholders
❖ Provide guidelines necessary to design a rewards program consistent with the
mission and vision

8. 7
What it Takes to Attract and Retain
LEAVE
Lack of recognition
No motivation
Lack of opportunity
STAY
Challenging work
Encourage development
Positive interaction

9. 8
Top 5 Reasons Employees are Engaged
Connectivity to manager
1
Growth and development
2
Work experience3
Personal time4
Challenging work
5

10. 9
Poll Question #1
Do you have a formalized Total Rewards Strategy?

11. 10
Meet the Generations
• This job is my reward!
• Very loyal
Traditionalists
(1922–1945)
• This is so exciting!
• Optimistic
Baby Boomers
(1946–1964)
• Is there an app for that?
• Very independent
Generation X
(1965–1980)
• And why are we doing this?
• Need meaningful work and life
Generation Y
(1981–2000)
• Not enough information to determine this group
Generation 2020
(Born after 2000)

12. 11
Multigenerational Workforce Differences
BORN Baby Boomers Generation X
Generation Y
(Millennials)
Elements 1946–1964 1965–1980 1981–2000
Values Participation equity Balance between life and work Diversity/morals
Authority Non-authoritarian Dislikes close supervision Respectful of early generations
Characteristics Optimistic Highly motivated Can-do attitude
Work Priorities To be a star Fun and flexible Money/career development
Training Skill practice Visional stimulation Mentor programs
Technology Willing to learn Technologically savvy Technologically superior
Career Goal Build a stellar career Build a portable career Build parallel careers
Work/Life Need Assistance Balance Meaningful balance
Compensation Fixed Salary/LTI/Stock Fixed salary/STI STI/commission
Benefits Security Portability Education
Retirement and Wealth
Need
Retirement planning Build wealth Education/portability

13. 12
The Building Blocks of Total Rewards
Compensation
Benefits
❖ Healthcare
 Medical
 Prescription
 Dental
 Vision
❖ Death and disability
❖ Retirement
❖ Paid time off
❖ Long-term care
❖ Wellness
❖ Voluntary Benefits
Workplace Experience
❖ Growth and development
❖ Talent management
❖ Succession planning
❖ Communication
❖ Connectivity to supervisor
and leadership
❖ Work/life benefits
❖ Corporate leadership
❖ Recognition
❖ Base salary
❖ Variable pay
 Annual
incentives
 Gain sharing
 Profit sharing
❖ Long-term
incentives
❖ Pay for
performance
❖ Sales
compensation

14. 13
Total
Rewards
Program
Performance
Management
Fixed Pay
Variable Pay
Work—Life
Learning and
Development
Time Off
Savings/
Retirement
Health and
Welfare
Sample Total Rewards Strategy
Business
Needs
Employee
Needs
Total Rewards
Programs
Employee
Needs

15. 14
Sample Workforce Engagement Strategy

16. 15
Total Rewards Design Process
Employee
Needs
Total Rewards
Programs
Current Business goals
Future Business needs
Current Program costs
Employee expectations
(perceptions)
Survey the market
Survey employees
Review current plan
design
Identify business
implications
Conduct gap analysis
Recalibrate HR strategy
Design Total Rewards
program to support
strategy
Assess financial
implications
Present HR strategy
Show link of Total
Rewards programs to
strategy
Present financial impact
Communicate
RecommendStrategizeAssessUnderstand
PROCESS TO DESIGN TOTAL REWARDS PROGRAMS

17. 16
Design Process: Internal/External
❖ Conduct Employee Climate Survey and Use Demographic Data
 Conjoint Analysis
 Total Rewards Strategy Session
❖ Conduct External Total Rewards Market Analysis
 Labor market—lose to/draw from
 Specific public and private entities
 Scope and demographics
❖ Custom Survey of Total Rewards (Peer Group)
 Specific comp, benefit, retirement, work-life questions
❖ Maintain desired positioning vs. market
 Internal vs. external pay competitiveness
 Compensation competitiveness against peers
 Benefits and Retirement competitiveness against peers

18. 17
Total Rewards Strategy Questions
Conduct a Total Rewards Strategy Session with Key Stakeholders
❖ Do you think your reward programs support your business strategies?
❖ Which of your reward programs are most and least effective in support the
mission and culture of the organization?
❖ Which programs do you believe are most important to the organization?
❖ Do you think your employees are engaged and if so do you think it is because
of certain rewards they are offered?

19. 18
Total Rewards Questions
❖ How do you attract and retain top talent?
❖ Who would you consider your peer group and would you like to anchor your
philosophy to match their current strategies?
❖ Where do you think you should anchor your pay and benefits? (50th percentile?
Below or above?)
❖ How does variable compensation play a role in total compensation package and
what should the mix of pay be?
❖ Do you consider you organization a “pay for performance” culture?
❖ What rewards do you feel are “missing” from the package?

20. 19
Poll Question #2
Have you conducted an Employee Survey?

21. 20
Total Rewards Questions
❖ Do you have a particular philosophy that you would like to see the organization
take when developing a total rewards strategy?
❖ Do the leaders of the organization have a particular philosophy that needs to be
considered when making decisions regarding total rewards?
❖ Are you in high growth mode or stability mode?
 Are you facing market pressures?
 Are you focused on a specific market segment?
❖ Do you have trouble attracting or retaining talent? What are your critical
positions?
❖ Why do you think your employees come to work for you?

22. 21
Identify Strengths/Weaknesses of Existing Reward Plans
SWOT Analysis
Strengths
• Which reward programs are effective
today?
• What should we keep and/or emulate?
Opportunities
• How can we best meet the demands of
key stakeholders?
• How competitive are our programs?
• What are the employees' perception of
total rewards?
Threats
• What conditions threaten business
success?
• How do existing plans fail to respond to
external conditions?
• How do existing plans fail to respond to
internal conditions within the
organization?
Weaknesses
• Which plans do not work today?
• What and how much needs to change?
• What are the market conditions and are
we competitive?

23. 22
Communication
❖ Build awareness that all generations bring opportunities and strengths as well
as challenges
 Diversity is good
 Not everyone fits into one mold
 Each group communicates differently
❖ Communicate to motivate
 Effective communication will motive people
 Misunderstood comments can have a lasting repercussion
 Develop different communication channels
 Train managers on multigenerational communication

24. 23
Communication in the Workplace
Generation Preferred Method Suggested Ways
Traditionalist Memos
Letters
Personal Notes
Individual interaction
Words and tone of voice should be respectful,
Language should be more formal and professional
and the message should relate to long term goals
Boomers Face to face
Phone calls
Personal interaction
Informal conversations over coffee or lunch, ask
about mutual interests, make the conversation
participative, link message to the team or
individual results
Gen X Voicemail
E-mail
Casual
Direct/immediate
Don’t waste time, be direct and get to the point,
avoid corporate speak, send email or voicemail
clearly stating what you want
Gen Y Digital (instant)
Text message
Blogs
Collaborative
interaction
Be positive, send a text message to get their
immediate response, instant messaging, don’t be
condescending, communicate about personal and
professional development opportunities

25. 24
Communication Channels
❖ Total Rewards Statements
❖ Town Hall Meetings
❖ FAQ’s or Summary Statement on the Intranet
❖ Placards
❖ Manager Meetings
❖ Webex Presentations
❖ Develop a Total Rewards “APP”

26. 25
Final Thoughts
❖ Conduct Employee Survey to Determine Employee Perceptions
 Conjoin Analysis
❖ Conduct an external Total Rewards Value Analysis
 How do you compare to the market? (Comp, Benefits, Retirement, PTO)
❖ Conduct a Total Rewards Strategy Session (Senior Leadership)
 Use the total rewards questions
❖ From the Strategy Session Develop the Total Rewards Strategy
 Philosophy/Vision/Mission
 Elements of Rewards
 Design Platform or Dashboard
❖ Communicate to the Multigenerational Workforce Appropriately
 Use different forms of communication
 Engage managers to understand the programs and how to work with multi-generations

27. Appendix
Sample Analysis Results

28. 27
Quantifying the Results: Total Rewards Value Analysis
$54,343
$50,482
$69,607
$65,298
$58,208
$-
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
$45,000
$50,000
$55,000
$60,000
$65,000
$70,000
$75,000
ABC Company Division A Division B Division C Market
Average Total Rewards Value, Per Employee
Base Pay
70.0%
Paid Time
Off
6.0%
Benefits
18.0%
Short-
Term
Incentives
6.0%
Distribution of Total Rewards, Sample Company
Base Pay
66.6%
Paid Time
Off
6.7%
Benefits
22.2%
Short-
Term
Incentives
4.5%
Distribution of Total Rewards, Market

29. 28
Executive Summary
❖ Lockton conducted a total rewards analysis of
 Medical, dental vision, LTD, STD, Life, AD&D
 Base salary, total cash, target incentive
 401k and PTO
❖ Results indicate the following
 Health and welfare
 Cost is within market norm
 Value is above market norm
 Paying at the market for base salary
 Paying above the market on total cash (including profit sharing)
 Paying at the market for target incentive
 Above market for 401k
 Above the market on PTO

30. 29
Total Rewards Summary
Total Summary
Employee Category
# of Employees
in Study Total Market Value
Total ABC CO
Value
Variance % -
ABC to Market
Executive 9 $2,744,677 $3,057,754 112.2%
Director 14 $2,523,690 $2,850,709 113.5%
Manager 15 $1,802,538 $2,027,438 112.0%
Supervisor 8 $635,760 $647,262 101.3%
Prof/IC 45 $3,994,768 $4,292,336 106.9%
Admin/Tech 147 $6,978,594 $6,672,894 95.2%
Grand Total 238 $18,680,026 $19,548,393 100.4%
Total Rewards Value

31. 30
Total Rewards Summary
Compensation, Benefits, 401k, and PTO
Compensation Benefits
Employee Category
Sum of Market - Total
Cash 50th
Sum of ABC - Total
Cash Comp
Variance % -
ABC to Market
Sum of Market -
Total Benefits
Sum of ABC -
Total Benefits
Variance % - ABC
Co to Market
Executive $2,463,485 $2,938,527 119.3% $98,573 $127,785 129.6%
Director $2,227,781 $2,641,973 118.6% $153,335 $198,177 129.2%
Manager $1,488,744 $1,878,488 126.2% $164,288 $170,779 104.0%
Supervisor $499,599 $567,108 113.5% $87,620 $91,136 104.0%
Prof/IC $3,220,460 $3,881,974 120.5% $492,864 $441,034 89.5%
Admin/Tech $4,993,460 $5,395,842 108.1% $1,610,022 $1,275,582 79.2%
Grand Total $14,893,530 $17,303,911 116.2% $2,606,702 $2,304,493 88.4%
Employee Category
Sum of Market - 401k
Employer Contribution
Sum of ABC -
401K Employer
Contribution
Variance % - ABC
to Market
Sum of Market -
PTO Value
Sum of ABC -
PTO Value
Variance % -
ABC to Market
Executive $59,037 $68,877 116.7% $123,582 $181,399 146.8%
Director $39,089 $45,827 117.2% $103,484 $157,296 152.0%
Manager $40,604 $47,497 117.0% $108,902 $127,255 116.9%
Supervisor $11,538 $13,887 120.4% $37,003 $37,349 100.9%
Prof/IC $79,371 $93,302 117.6% $202,072 $233,286 115.4%
Admin/Tech $113,144 $134,204 118.6% $261,967 $281,870 107.6%
Grand Total $342,784 $403,595 117.7% $837,011 $1,018,455 121.7%
401(k) PTO

32. AGENDAQ & A
Talent Takeaways Series
Live Q&A

33. AGENDAAGENDA
Resources & Support
Talent Takeaways Series
✓ Resource Library
✓ Product Information
✓ Product Tour & Demo
HRsoft.com

34. 33
Our Mission
To be the worldwide value and service leader in insurance brokerage,
risk management, employee benefits, and retirement services
Our Goal
To be the best place to do business and to work
RISK MANAGEMENT | EMPLOYEE BENEFITS | RETIREMENT SERVICES
lockton.com
© 2017 Lockton, Inc. All rights reserved.