Open training course delivered in London to a number of HR and reward specialists interested in recent developments and examples of best practice.

1. Reward by Fluid January 2010

2. Page 2 Contents 3-4 Introduction to Fluid 5-12 Benefits 13-15 Flexible benefits 16-21 Pay and salaries 22-24 Bonuses 25-32 Reward 33-45 Real-life examples 46-47 Exercise 48-49 Case studies 49-50 Conclusion and questions

3. Page 3 Introduction

5. Selection- Attraction - Remuneration & Reward - Outplacement - Training & HR consultancy

6. Page 5 Benefits

8. Enrolment period

9. Pre-selection modelling

10. Alerts and updates

11. Access by net/intranet

12. Personal data archive

13. Online advice and helpdesk-phone/email

14. Software/admin hosted by client/supplier

15. Implementation cost per 1000 people if in-house/outsourced

16. Ongoing cost per head for admin Benefits (1 of 7)

18. Free car parking

19. Paid time off for medical & dental appointments

20. Counselling/employee assistance programme

21. Long-service awards

22. Car allowances

23. Optical benefits

24. Private medical insurance

25. Company car scheme

26. Permanent health insurance

27. Childcare vouchers Benefits (2 of 7)

29. Cost per benefit based on 1000 employees, salary average £25000, cost per employee (cpe), cost for all (cfa)

30. Pension £2000(cpe), £2M(cfa), based on 8% employer contribution

31. Pension via salary sacrifice -£160(cpe), -£160000(cfa), employers’ NI saving on 5% employee contribution

32. Life assurance £70(cpe), £70000(cfa) 4 x salary

33. PMI £450(cpe), £450000(cfa)

34. Health screening £350(cpe), £350000(cfa)

35. EAP £12(cpe), £12000(cfa) Benefits (3 of 7)

37. Dental insurance £150(cpe), £150000(cfa), mid-range cover

38. Holiday £480(cpe), £480000(cfa) five days over statutory minimum as 1/260th salary

39. Childcare vouchers -£373(cpe), -£14920(cfa) employers’ NI saving from £243 per month into vouchers

40. Bicycles -£90(cpe), -£1800(cfa) employers NI and VAT saving from a £300 cycle

41. Voluntary benefits £8(cpe), £8000(cfa) online packaged voluntary benefit scheme

42. Xmas party £80(cpe), £80000(cfa)Benefits (4 of 7)

44. Training schemes or training days 73%

45. Team drinks & social functions 72%

46. Contributions to company or private pension 51%

47. Personal incentives such as meals and events 50%

48. Mobile phone supplied by employer 49%

49. Flexible working hours/flexi time 45%

50. Dress down policy 44%

51. Private medical insurance 39%

52. Team bonuses other than individual 39%Benefits (5 of 7)

54. Regular reviews

55. Balanced benefits

56. Communicate

57. Pressure

58. Be competitiveBenefits (6 of 7)

60. Reduced hours 84%

61. Job-sharing 68%

62. Home-working 68%

63. Childcare vouchers 64%

64. Occupational health 64%

65. Flexitime 64%

66. Compressed hours 56%

67. Sabbaticals 56%

68. Car allowance 52%

69. Loans 52%Benefits (7 of 7)

70. Page 13 Flexible benefits

72. Build a strong business case to obtain senior buy-in

73. Select an experienced broker to negotiate favourable terms

74. Choose a technology provider with a proven record

75. Don’t be over-ambitious initially

76. Spend as long as it takes cleansing your benefits data

77. Appoint a project team with at least one senior championFlexible benefits (1 of 2)

79. Communicate clearly with employees at all stages including focus groups initially and feedback surveys after launch

80. Remember that flex is flexibleFlexible benefits (2 of 2)

81. Page 16 Pay and salaries

83. Director, average £168/basic £128

84. Senior function head, average £111/basic £95

85. Function head, average £88/basic £76

86. Department manager, average £71/basic £60

87. Section manager, average £51/basic £44

88. Team leader, average £40/basic £37

89. Sales/marketing executive, average £33/basic £31

90. Professional, average £29/basic £26

91. Junior professional, average £20/basic £19Pay and salaries (1 of 5)

93. Director, average £165/basic £133

94. Senior function head, average £116/basic £97

95. Function head, average £87/basic £78

96. Department manager, average £69/basic £63

97. Section manager, average £53/basic £49

98. Section leader, average £46/basic £44

99. Senior accountant, average £37/basic £35

100. Accountant, average £28/basic £27

101. Junior accountant, average £22/basic £21Pay and salaries (2 of 5)

103. Chief Executive £80

104. Director £68

105. Senior function head £53

106. Function head £44

107. Department or section manager £36

108. Senior specialist/professional/technical £30

109. Specialist/professional/technical £22

110. Junior specialist/professional/technical £18

111. Trainee specialist/professional/technical £15

112. Trainee non-professional £13Pay and salaries (3 of 5)

114. Work out your budget

115. Review reward principles

116. Analyse market pay data

117. Gain budget approval

118. Communicate the timetable

119. Support line managers

120. Fine-tune the process

121. Explain decisions to staff

122. Inform payrollPay and salaries (4 of 5)

124. Ask who produced the survey

125. Check out the methods of data collection

126. Make sure the sample size is big enough

127. Pay attention to all reward package elements

128. Understand the key statistics

129. Get the right match

130. Decide your market position

131. Use your judgementPay and salaries (5 of 5)

132. Page 22 Bonuses

134. Senior function head, average bonus £30/basic £106

135. Function head, average bonus £16/basic £80

136. Department manager, average bonus £10/basic £63

137. Section manager, average bonus £7/basic £49

138. Team leader, average bonus £4/basic £42

139. Senior, average bonus £3/basic £35

140. Professional, average bonus £2/basic £29

141. Junior professional, average bonus £1/basic £21

142. Trainee, average bonus £1/basic £16Bonuses (1 of 2)

144. Company performance/profitability 46%

145. Individual performance 35%

146. Customer service/satisfaction 18%

147. Productivity 17%

148. Sales targets 11%

149. Teamworking/team objectives 11%

150. Absence/attendance levels 6%

151. Health & safety 6%

152. Quality measures 4%

153. Exceptional performance 4%Bonuses (2 of 2)

154. Page 25 Reward

156. Benchmark your current position

157. Select your benefits with care

158. Introduce two-way communications

159. Totally rewarding

160. Talk to your advocatesReward (1 of 7)

162. Benefits

163. Grading structure/job evaluation

164. Bonus schemes

165. Annual salary review

166. Harmonisation of pay/benefits/grading

167. Pensions

168. Total reward

169. Performance-related payReward (2 of 7)

171. Benefits

172. Annual salary review

173. Grading structure/job evaluation

174. Bonus incentive schemes

175. Salary benchmarking

176. Pensions administration

177. Reward strategy

178. Share schemes and options

179. Equal payReward (3 of 7)

181. Base salary competitiveness 47%(1), 20%(2)

182. Effectiveness/competitiveness of PRP 29%(1), 26%(2)

183. Cost control 29%(1), 28%(2)

184. Cost reduction 28%(1), 28%(2)

185. Total reward competitiveness 25%(1), 27%(2)

186. Improving effectiveness of current benefits spend 20%(1), 28%(2)

187. Harmonisation and/or removing inconsistencies 20%(1), 30%(2) Reward (4 of 7)

189. Final-salary pensions costs 36%

190. Employees do not understand benefits package 35%

191. Long-term sickness provision/costs 25%

192. Uncompetitive benefits package 23%

193. Company cars 22%

194. Lack of joined-up thinking with overall package 22%

195. Employees demanding more flexibility 16%

196. Employees demanding more benefits 15%

197. Private medical insurance costs 15%Reward (5 of 7)

199. Avoid panicking

200. Think long-term

201. Engage with your employees

202. Check what your competitors are offering staff

203. Keep your staff up to dateReward (6 of 7)

205. Get flexible

206. Communicate

207. Promote cycling

208. Use shares

209. Charity begins at work

210. Look at top pay levels

211. Recognise your employees formally….

212. ….and informally

213. Bulk buy your benefits

214. Assemble a packageReward (7 of 7)

215. Page 33 Real-life examples

217. Introduced a specific brand following focus groups, initially using paper and online selection methods

218. Issued total reward statements to all employees to support the annual pay negotiations and the recruitment strategy

219. Transferred the scheme online with computer access on-site and added benefits to suit a wide range of peopleReal-life examples (1 of 11)

221. Increase to 81% from 74% of the workforce making at least one flexible benefit selection

222. Employees now have more flexibility to take benefits or cash options

223. Benefits support work-life balance, wellbeing, employee engagement, environmental issues, savings and parental needs

224. Increased retention rate as voluntary leaver rate cut by 4%

225. Employees can access their statements and check their selections at any time

226. Trade union support for the communication of the benefits to membersReal-life examples (2 of 11)

228. Conducted an employee survey which identified that employees would feel more engaged if they felt more valued. Those departments with high recognition scores were asked to disseminate best practice.

229. Created a new language for recognition with visible totems and tools presented to team leaders and managers in a masterclass run by an external expert.Real-life examples (3 of 11)

231. Awards dinner and long-service awards were revamped and an online Thank You site was created, offering cards and small gifts.

232. Introduced awards for employees, allocated by a staff voting process.Real-life examples (4 of 11)

234. Thank You site now receives about 1900 entries a month from people appreciating their colleagues

235. More than 400 Thank You cards are sent every month

236. Very positive feedback from revamp of long service award

237. Employee survey found recognition had improved from 68% to 76%Real-life examples (5 of 11)

239. Introduced a ‘pay for performance’ approach to all staff, linking reward to individual and team performance

240. Created a simplified pay and grading structure to give managers greater flexibility and a performance review process to identify top performers

241. Developed innovative ways to recognise the contribution of all employees, including granting 200 free share options for all employeesReal-life examples (6 of 11)

243. Strong link between performance and increased shareholder value

244. Universal buy-in and support from business managers

245. Redesigned sales incentives seen as a valuable tool for driving and rewarding profitable growth

246. Many individuals and teams exceeded sales targets

247. Results surpassed expectations with profit up 50% to $48M

248. High employee engagement, with 70% happy with the rewards they receive, and 84% proud to work for the companyReal-life examples (7 of 11)

250. Invested an extra £2M in the retail payroll budget & benchmarked pay against competitors

251. Linked individual pay to actual sales turnover and defined performance criteria in consultation with the works council. This took into account existing bonuses, incentives and terms & conditions

252. Communicated changes via 13 nationwide area briefings in two weeks with back-up documentation and carried out additional employee survey to measure levels of satisfactionReal-life examples (8 of 11)

254. Store manager turnover was reduced by 43% and overall labour turnover dropped by 16%

255. The number of customer complaints declined by 25%

256. Three in five employees said their salary was fair for their responsibilities, compared with 16% in a previous satisfaction survey and motivation levels are now at 62%

257. Absence has fallen by 27%Real-life examples (9 of 11)

259. Benchmarked salary across the industry and consulted line managers to define roles and competencies

260. Designed a pay and grading structure to demonstrate pay and career progression

261. Trained line managers in an employee assessment process

262. Communicated the new structure in face-to-face briefings and online Q&A chat sessionsReal-life examples (10 of 11)

264. 6000 employees have a pay and grading structure with defined job roles

265. There is now a reward system in place for increasing responsibility and gaining new skills and knowledge and a career workbook shows employees what they need to achieve to improve pay

266. The results of the latest survey indicated that overall satisfaction with pay had increased by 11%. A telephone survey following implementation found more than 80% agreed that the structure is easy to understand

267. Staff turnover is showing signs of reducingReal-life examples (11 of 11)

268. Page 45 Exercise

269. Page 46 Exercise

270. Page 47 Case studies

271. Page 48 Case studies

272. Page 49 Conclusion & Questions

273. Page 50 Conclusion Summary Questions