This presentation had been conducted by Peter Newhouse, Global Head of Reward, Unilever at the HR Innovation and Strategy Meeting Spring 2016.

1. THE FUTURE
OF REWARD
PETER NEWHOUSE
GLOBALHEAD OFREWARD
UNILEVER
NEW ERA OF HR

2. OUTLINE OF THE SESSION
The
Vision
Three Big
Drivers for
Change
How
Reward is
Evolving
Foundations
for a new
Reward
Proposition
How
Reward
Works
New
Directions
1 2
3 4 5
6
How technology and the new generation
are shaping THE FUTURE OF REWARD

3.  Pay custom tailored to fit
 Lots of flexibility
 Easy to deliver
 Easy to change
THE VISION

4. 3 BIG DRIVERS FOR CHANGE
CHANGE

5. PEOPLE DRIVERS
HOW WE WANT THINGS TO BE
 Closed  Open
 Inequitable  Fair
 Erratic  Consistent
 Incoherent  Explainable
 Rigid  Flexible
 Hierarchical  Flat

6. ORGANISATIONAL DRIVERS
 Focus
 Standardisation
 Simplification
 Fewer resources

7. 3 BIG DRIVERS FOR UNILEVER
1. Purpose driven business model
2. The Extended Organisation
3. Employee Centred

8. 8
HOW REWARD IS EVOLVING
Centralised
Independent
De-centralised
Interdependent
Hopelessly
Local
Mindlessly
Global
Multi-Local
Ad-Hoc and
Inconsistent
One Size
Fits All
Segmented

9. TECHNOLOGY
ENABLER ENABLER
CONSTRAINT
 Consistency
 Data
 Automation
 Segmentation
 Personalisation

10. THE OPPORTUNITY
Technology
with Humanity
aligned to Purpose

11. LAYING THE FOUNDATIONS
 New Principles
 New Data & New Technology
 New ways to look at Reward

12. OLD PRINCIPLES
 Attract
 Retain
 Motivate
 Pay More!
 Pay More!!
 Pay More!!!


With only Pay - how do you ….?

13. Tough
Place to
Work
ATTRACT
Good
Place to
Work
Lonely
Place to
Work
RETAIN
MOTIVATE
THE REWARD PROPOSITIONFIXEDPAY
VARIABLE PAY
Interesting
Place to
Work?VocationalPURPOSE
The way
you pay
will Attract
Retain &
Motivate
different
kinds of
people

14. Systems &
Processes
Reward
BehaviourValues
Culture
HOW REWARD WORKS
14
Individual
Collective
Inside
Outside

15. NEW DATA & NEW TECHNOLOGY
1. Reward Profile – analytics
2. ‘Rate-my-Reward’ – feedback
3. Market Data – positioning
4. Pay Philosophy – authenticity
5. Employee Engagement
6. Business Results

16. NEW WAYS TO LOOK AT PAY
NOW SOON LATER AFTER
SALARY
BENEFITS
BONUS
SHARES
PENSION

17. NEW STRUCTURES
17
Time
Level
Cumulative Value
Over time
Trajectory – pay the person not the role
Reward Structure

18. NEW DIRECTIONS FOR REWARD
 More benefits, less variable pay
 Reward as long term cash flows
 Lifestyle alignment
 “Advances”
 Giving people what they value

19.  Pay custom tailored to fit
 Lots of flexibility
 Easy to deliver
 Easy to change
THE FUTURE OF REWARD
THE VISION
OF WHERE WE WANT TO BE

20. DISCUSSION

21. THE FUTURE
OF REWARD