The Evolution of Work and Next
Practices in Total Rewards
Presented to the Rocky Mountain Total Rewards Association
by Mark Englizian
September 15, 2016
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i4cp discovers…
the human capital practices that correlate with
top quartile business performance
© 2014 Institute for Corporate Productivity, Inc.
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Member Network
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Defining High Performance
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Revenue growth
Market share
Profitability
Customer satisfaction
Focus of Research:
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What do high-performance organizations do differently?
Do those practices correlate with market performance?
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HPOs Excel in 5 Core Areas
Talent
performance
Leadership
engagement
Market
innovation
Culture Market
agility
Strategy
execution
Source: Institute for Corporate Productivity (i4cp)
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The People-Profit Chain™
Accounts for 28%
of Variance in
Market Performance
A model to improve
organizational
performance up to
3X
Sustainable High Performance depends on the consistent ALIGNMENT
of Market, Strategy, Culture, Leadership and Talent!
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Driving the Evolution of Work
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3M
Adobe
Ally Financial
Amway
Avaya
Banner Health
Baxter
BNSF
Cardinal Health
Cargill
Celgene
Choice Hotels
Cigna
Coca Cola
Corning
FedEx
Gilead
Grant Thornton
Hitachi
HP
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HSBC
Jack in the Box
Land O'Lakes
Macy's
McDonald's
MGM Resorts
Nexteer Automotive
Pandora
Pitney Bowes
Qdoba
Ricoh Americas
Starbucks
Starz Entertainment
Sunlife
TD Bank
T-Mobile
VF Corporation
Western Union
Wolters Kluwer
Xerox
 A partial list of companies included in the interviews
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Summary of Four Big Trends
Δ Worker expectations for control & flexibility
Δ Use of non-traditional work to increase capability,
capacity & agility
Δ Transition from ineffective annual performance reviews to
regular discussions
Δ Control cost of employment and simultaneously improve
power of the employee value proposition
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Four Big Trends
#1: Worker Expectations for
Control & Flexibility
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How Does This Trend Impact The Practice
of Total Rewards?
∆ Transparency of structures, titles, eligibility and comp
analysis (diversity/gender pay gaps)
∆ Recognize the intrinsic value of well designed and well
executed recognition, training and care programs
∆ Are traditional job descriptions constraining?
∆ Tenure and retention re-defined
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Four Big Trends
#2: Use of Non-Traditional Work to
Increase Capability, Capacity & Agility
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A Clash of Trends
The Gig Economy &
Worker Independence
 34% of the U.S.
workforce freelances,
and “by 2040 the
economy will be scarcely
recognizable” (Fast
Company, 2015).
Regulation
 NLRB rulings on coemployment and other issues;
FLSA revisited; etc.
 Obama Jobs Czar and GE
Chief Executive Officer Jeffrey
Immelt, “reassured
stockholders in a letter Friday
the company is still a solid
investment despite most
government policies
perpetuating a cycle of “slow
growth, poor job creation,
populism, low productivity,
higher regulation, poor policy
and more slow growth.”
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How Does This Trend Impact The Practice
of Total Rewards?
∆ Adopt a total "workforce" mind-set and metrics
∆ Embed in your recruiting and compensation systems the
cost differential between FTE and non-traditional worker
∆ Short term and project based incentives for the next
generation worker
∆ Parse out value-added, mission critical work requiring
technical expertise that can/should be acquired in bursts
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Four Big Trends
#3: Transition from ineffective annual
performance reviews to regular discussions
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Customer-Focused Performance Metrics
 HPOs integrate customercentrism into performance
evaluations more significantly
(2.5x)
 HPOs emphasize customer
accountabilities 3.5x more for
promotion decisions
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Got Coaching?
Only 37% of highperformers have
coaching as a part of
their PM process – but
it has a high correlation
to market performance.
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How Does This Trend Impact The Practice
of Total Rewards?
∆ Design customer-centric BU incentive plans
∆ Use performance feedback primarily for development and job fit
∆ Go beyond ratings, get creative in measuring and reporting on customer
impact (internal and external)
∆ De-centralize the annual pay review; calibrate for succession planning
∆ Use new technologies to strengthen teams and improve results
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Duane Edwards
Founder & CEO
TEAMATICS.COM
I believe in the power of great teams and their ability to transform the lives of their
members and the performance of their organizations. But so many teams and their
leaders know that they are not there yet. Too many managers lack the skills and
experience they need to build an outstanding team. Too often thousands of dollars
are wasted by companies on training that is not used, and on consultants that
address the needs today but are not there tomorrow as the team changes and
faces new challenges.
Teamatics was founded to help you create a great team. We combine proven, bestin-class management techniques with innovative approaches, all within a cloud
software application. Teamatics is there for you whenever you need it, providing
insights and tools to continually improve your team. If you believe in the
transformative power of teams, Teamatics is for you.
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Four Big Trends (Next Practice)
#4: Control cost of employment and simultaneously
improve power of the employee value proposition
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How Does This Trend Impact The Practice
of Total Rewards?
∆ Define and measure your total cost of employment
∆ Focus on improving efficiency
∆ Measure effectiveness
∆ Optimize employee value proposition
∆ Get comfortable with opportunities to re-purpose your spend; and sell
your plan to the HRLT and EOC
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Mark Englizian
Strategic Business Advisor
[email protected]
(425) 698-3800
© 2014 Institute for Corporate Productivity, Inc.
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