The webinar slides summarized Pay-for-Performance programs and the HRTMS software. The webinar included sections on market trends in Pay-for-Performance, an overview of the HRTMS performance review, compensation, and job description modules, and demonstrations of the software from the perspectives of various roles like employee, manager and executive. It showed how the software allows for integrated performance reviews, compensation planning based on review results, and a holistic view of employee performance data.

1. Webinar Slides – February 2012
Mitch Stephens

2.  1: Pay-For-Performance background
 Market conditions and trends
 2: Products overview
 Jobs, Performance, Compensation
 3: Performance Review Drill Down
 Role-based perspective
 4: Compensation
 Integrated Compensation
 Modeling and Calibration
 5: Wrap up

4. Pay for performance:
sometimes abbreviated "P4P", is a motivation
concept in human resources, in which employees
receive increased compensation for their work if
their team, department or company reaches certain
targets.
At least 75 percent of all U.S. companies connect at
least part of an employee's pay to measures of
performance.

5. Courtesy of Towers Watson 2011 Talent
Management and Rewards Survey

6. Merit pay remains relatively flat

7. Short-term incentive funding expected to drop from
2010 to 2011
Funding exceeded 100% last year, but is expected to
drop this year

8.  65% of employers think employees have been
working more hours than normal over the past
three years
 53% expect this to continue over the next three
years
 This is especially true for senior managers and
professionals

9. Top Performer Employees rank base pay base pay more highly than their prospective
employers.

10. Employers do not completely understand what would cause employees to leave —
especially the best employee

11. Successful organizations recognize the importance
of segmenting the high-performing employees

12. Although organizations target payouts so that top performers will receive 120%
more than employees who only partially meet expectations, they typically
only get about 70% more.

13.  Fewer than half of all employees report that high-
performing employees are rewarded for their
performance
 Source: Towers Watson 2011 Talent Management
and Rewards Survey.

14.  Identify top and bottom performers
 Decide on the balance between objective and subjective
 Set clear, achievable, measurable goals and measure against them
 Create a comp plan that strikes the optimal balance:
 Reward the best people
 Pay the average performers the median amount
 Apply real metrics to the process, not just a blanket one-size-fits-
all
 Clearly communicate your compensation
philosophy to both managers and employees

16. • HRTMS Jobs
• Job Description management tool
• Manage competencies for Performance Reviews
• HRTMS Performance
• Performance Review System
• HRTMS Compensation
• Integrated Compensation system

19. We will show several roles: Employee,
Corporate manager, District Manager,
Executive

29. Corporate Manager: Mike
Biehl
The next series of slides show the corporate
manager perspective
The Manager receives an e-mail when the
employee ―submits‖

43. Storeline District Manager: Conrad
Enslow
The next series of slides show the District Manager’s
perspective (store managers, assistant managers).
Storeline reviews are 70% based on actual results

50. Storeline Regional Manager: Cleo
Lehew
Seeing your organization

54. Storeline District Manager: Conrad
Enslow
Providing actionable analytics for managers and
executives without requiring any technical talent.

60.  Simple user interface
 Powerful form designer
 Competencies, integrated with Job description module
 Full Goals management, including cascading and organization
goals
 Comments by all roles
 Validations and required fields
 Link to spreadsheets and other attachments
 Powerful conditional workflow process
 E-mail notifications
 Role-based access control
 Full integration with Job Descriptions and Compensation
 Now let’s switch to compensation..

61. Excel-based Merit/STI Compensation Module

62. Allows authorized managers to recommend and
approve annual increases, including merit, STI, LTI,
lump sum and adjustments.
Allows you to model and budget expenditures based
on actual performance data

63. • TMS Compensation is driven by YOUR Excel
workbooks
• Formulas, validations, conditional formatting, business
rules are all preserved.
• Your data is stored in a secure SQL database
• Our unique web interface lets you work online without
having to download the workbook
• Note that download is still available
• We harness the power of Excel as our calculation engine
without the downside of distributing workbooks

64. We then
complete the
Excel Mapping
Process
Note that we never actually store
the workbooks – we are just
leveraging the power of Excel!
We start with your Excel workbook
Almost any comp workbook can be
used as the template, including
Excel 2007 format.

65. This workbook
incorporates
Merit, MICP and
LTIP

66. This workbook has
three main budgets:
Merit, Equity and
Bonus.

67. This workbook allows
for Merit %, Market
Adjustment% and
Promotion%

69. Let’s look at the compensation system in a
browser

70. Start performance Calibration and Compensation is
review process Modeling finalized
Performance Compensation Employee
Reviews reach the process – Meetings
compensation Managers submit
holding step compensation
recommendations

71.  This phase usually happens AFTER the
performances reviews are completed, but BEFORE
the compensation process begins
 The modeling is done using the SAME Excel
Workbooks as the main process

72. Objective is to determine the optimal increase
recommendations based on the ACTUAL
performance review scores and available budget

73.  Most companies arrive at a single score for
employee reviews (e.g., 1-5 rating)
 Score may be mixture of objective and subjective elements
 E.g., sales results plus manager’s assessment of employee’s goals, work
behaviors, etc.
 The performance rating is the key element used in the merit
system, but..
 Does this really capture the full picture?

74.  The single PR score is important, but the compensation
manager should have access to the full picture
 Determining this year’s merit for key players should factor in
other elements, such as:
 Progress towards goals
 Employee and manager’s comments
 Extenuating circumstances such as leave of absence, special projects,
unfavorable business conditions, changing trends, staff shortages,
reorganizations, one-time events, and so on.
 Can a single score capture these elements?

75. HRTMS Offers a 360⁰ perspective
Popup window
shows the
Employee’s
Performance
Review

78.  Lowest Cost of ownership
 Easy to use, consistent user interface
 Fully integrated data structures, workflows,
authentication
 System of record (multiple cycles)
 Gives managers a compelling line of sight to
historical data that allows them to determine an
employee’s long-term value and contribution
 Allows you to calibrate and model based on actual
data
 Synchronize the PR/Comp workflow processes

79. • Bill Rost
• brost@hrtms.com
• 763-249-8050
• Web Site:
• www.hrtms.com