Presentation by Tom Dewaele during the 8th editon of Vlerick HR-day 2011.

1. War for Talent
What do we want to pay for it?
Tom Dewaele
Reward Europe
June 2011
1

2. War for Talent is a fact!
2

4. War for Talent is a fact!
4

5. War for Talent is a fact!
5

6. What is a talent?
Ultimately, any organization’s performance
depends on its decision effectiveness.
Consistently
high performers
make good decisions
make them quickly
and execute them well.
6

7. War for Talent is a fact!
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8. Reward & Talent together!
We need to
Sorry but this
get/keep this
will definitely
hughe talent in
not fit our
whatever the
reward policy
price may be
Talent Management Reward Management
8

9. Reward approach for talent
• One size fits all policies
• “Overall Average median positon in the total market”
• Very limited salary increases budgets
• Managing exceptions/police department
• Pay for (short-term) performance
We need much more flexibility in our
reward programms to attract and
retain our best talents

10. Talent Mgt Language
Consistently
demonstrates
outstanding
leadership
Consistently
demonstrates
leadership at the
expected level
Does not
demonstrate
leadership at the
expected level.
Fails to meet stretching Consistently meets stretching Consistently exceeds stretching
performance targets. performance targets. performance targets.

11. Reward Mgt Language
125%
110%
Media
n
90%
80%
Year 1 Year 2 Year 3 Year 4 Year 5 Base Variable Benefits

12. Base pay flexibility
125%
110%
Median
Middle boxer
Green boxer
90% Yellow boxer
Red boxer
Key Jobs
80% Mid Career Recruit
Year 1 Year 2 Year 3 Year 4 Year 5

13. STI: Pay for performance
• Strong differentiation tool
• Link to business results
• Link to individual targets
•
Different approaches possible!

14. Pay for performance: rigid
Company Team Individual
SOTP X Entity X Individual
KPIs
0-160% 0-100% 0-100%

15. Pay for performance: rigid
• Simple • Individual overperformance
• Predictable • Management judgement
• Business link • Declining markets
• Performance driver • Zero bonus years
• Future Potential

16. Pay for performance: open
Business Performance = Differentiation Factor
€ Bonus
€ Bonus Individual
Target Performance =
1 2 3 4 5 PDP Rating
Business Performance Individual Performance
is relative is relative 16

17. Pay for performance: open
17

18. Pay for performance
• Management judgement • Too complex
• Individual overperformance • Too flexible
• Reflecting business results • Management behavior
• Highering approach • Unpredictable
• Future Potential •

19. LTI: long term retention
Consistently
demonstrates
25 - 50% LTI 100 - 150% LTI 150 - 200% LTI
outstanding
leadership
Consistently
demonstrates
0 - 25% LTI 75 - 100% LTI 125 - 175% LTI
leadership at the
expected level
Does not demonstrate
leadership at the 0% LTI 0 - 50% LTI 25 - 75% LTI
expected level.
HOW
Fails to meet stretching Consistently meets Consistently exceeds
performance targets. stretching performance stretching performance
targets. targets.
WHAT

20. Total Reward positioning
Q4
Q3
Q2
Q1

21. Questions?