Delivering Total Reward

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Delivering Total Reward

• Joanne Wotton
• 2nd May 2007

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• Who are EC Harris LLP?
• Background
• Objectives
• How have we delivered Total Reward?
• Did we deliver Total Reward?
• How do we plan to continue?

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Who are EC Harris LLP?

• Unique professional services consultancy in the
  property sector we manage the construction and
  ongoing operation of built assets in more than 20
  countries worldwide
• EC Harriss reputation is founded upon delivering
  better value results to clients through the
  provision of business support and project
  services
• Originated in 1911 as a pure QS business now
  operates in the Project Management Building
  Surveying and Facilities Management markets
• LLP structure with 3,000 people globally
• www.echarris.com

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Background to developing Total Reward

• Our business strategy states
• The key to the future is the skills, knowledge
  and attitude of our people, acting together to
  deliver business value for our clients
• Our key drivers are to promote single entity
  behaviours and ensure we reward exceptionally for
  exceptional performance did our reward
  structures support this?
• Were Listening the 2005 Staff Survey found
• Pay and benefits to be one of the lowest scoring
  areas
• Only 35 responded favourably to questions on pay
  and benefits

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Background to developing Total Reward

• Reward Strategy sponsored by the Board, committed
  to
• Support Single Entity behaviour by promoting a
  Total Reward approach
• Recognising the contribution of all our people,
  rewarding current performance and incentivising
  high performance.
• Since its introduction a full review of the
  reward strategy was conducted in 2006 and updates
  are now being implemented for 2007

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Objectives

• Re-design communicate the UK Total Reward
  package specifically
• Create a strong brand for Total Reward that is
  recognised by employees and a central reference
  for all Reward information/communications
• Enable understanding of the Total Reward package
  for all our people
• Enable our people to influence their own reward
  through their performance
• Create a market leading benefits package to
  support attraction and retention
• Create a truly flexible Total Reward package
• Increase Tax and NI Efficiencies for employees
  and the business
• Incorporate Company Cars within the Flex Scheme
• Design a Total Reward Structure that can be
  replicated in all our operating locations

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How Have We Delivered Total Reward?

• Restructured the reward package to
• Base Salary Core Benefits (Holiday and Life
  Assurance, PHI for Associates)
• Employee Savings offered to all employees
• Benefits Allowance that can be used to purchase
  from a range of flex options (minimum allowance
  is 500) or taken as cash
• Incentives scheme that can award any amount at
  any time throughout the year rather than an
  annual bonus
• Delivered the reward package through the MySHARE
  brand
• Re-branded and re-launched reward as MySHARE as
  part of the employee proposition from EC Harris
  Your Career
• Appointed Motivano as administration system
  providers to ensure flexibility of administration
  and a clear and easy to use site
• Developed the range of benefits available
  according to market availability

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How Have We Delivered Total Reward?

• Branded as MySHARE reflecting individual
  opportunity to share in the success of the
  Partnership
• All people managers were briefed prior to the
  launch
• Championed by the Chief Executive with a group
  announcement supported by intranet pages (FAQs
  User Guides Benefits Details)
• Paper total reward statements used to communicate
  individual MySHARE packages and details on
  benefits launch
• Posters in every UK office advertising the
  benefits launch
• Making the Most of MySHARE min 25 sessions held
  in the renewal period every year
• Dedicated MySHARE helpdesks run in-house and by
  Motivano

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How Have We Delivered Total Reward?

• Core benefits
• Group Life Assurance
• Holidays
• Permanent Health Insurance (Associates and above)
• Employee Savings
• Flex Options (can be purchased using benefits
  allowance)
• Pension (Employer Matching)
• Private Medical Insurance for family/spouse/partne
  r
• Health Screening
• Dental Insurance
• Optical Insurance
• Critical Illness Insurance
• Personal Accident
• Holidays (/- 5 days)
• Annual Travel Insurance
• PC Leasing
• Bike to Work Scheme
• Tax Return and Will Writing Services

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How Have We Delivered Total Reward?

• Ongoing Communications throughout the year ensure
  the Total Reward message isnt just once a year
• Recruitment advertising and interviewing delivers
  Your Career and MySHARE as a key part of this
  (new joiners site)
• Group induction presentation focuses on how
  MySHARE supports our business goals
• Monthly new joiner elections lifestyle events
• Online total reward statements are updated
  monthly and available all year
• Monthly announcements and posters regarding
  employee discount offers
• Monthly incentive awards being made across the
  business communicated on branded certificates
• Competitions run through the MySHARE site to gain
  feedback
• Ongoing Team Leader training keeps the message
  fresh and managers up to date

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Did We Deliver Total Reward?

• Create a strong brand for Total Reward that is
  recognised by employees and a central reference
  for all Reward information/communications
• All internal communications relating to Reward
  are linked to the MySHARE brand linked into
  Your Career
• Enable our people to influence their own reward
  through their performance
• MySHARE rewards individual and team exceptional
  performance via PDRs and business client
  feedback
• Benchmarking provided in alignment to career
  families ensuring market competitive packages
• Create a market leading benefits package to
  support attraction and retention
• Recruiting managers use MySHARE to communicate
  the Total Reward package available to new
  employees
• Our 2006 Staff Survey showed an improvement from
  35 rating reward favourably to 45

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Did We Deliver Total Reward?

• Create a truly flexible Total Reward package
• 82 of our employees accessed and closed their
  election in year 1 have continued to do so year
  on year (36 prior to MySHARE)
• 17 chose to receive entire benefits allowance as
  cash
• 25 chose to spend some, but not all of their
  benefits allowance, and receive the balance as
  cash
• 58 chose to spend more than their benefits
  allowance on benefits, sacrificing some salary to
  fund their choices
• Increase Tax and NI Efficiencies for employees
  and the business
• Increased take up of most benefits led to an
  overall profit of 160,765.68 for the year
  (after admin costs!)increased to 200,574.51 in
  2006
• Childcare vouchers up 189
• Annual leave bought up 86
• Annual leave sold up 28
• Pension up 14
• Bike to work 2.3

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Did We Deliver Total Reward?

• Incorporate Company Cars within the Flex Scheme
• Company car scheme now totally administered
  online
• Design a Total Reward Structure that can be
  replicated in all our operating locations
• Scheme designs are complete and ready to be
  communicated for the UAE and Ireland
• Schemes are being designed for our 9 continental
  European Locations and Asian markets
• Design also appropriate for our assignee
  population

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What next?

• Continue to measure success and impact via annual
  staff surveys
• Launches in continental Europe in September
• Ongoing reward strategy reviews have resulted in
• Redesign of our incentives structures Your
  Incentives will be re-branded as Your Recognition
  and an annual Your Bonus is being introduced as a
  Global performance related bonus scheme
• Increased funding to our bonus scheme benefits
  structures as a result of market benchmarking
• Addition of new improved benefits as the market
  allows
• Employee focus groups have resulted in updates to
  the administration site and communications to
  ensure we are meeting their needs
• Broadening out into employee well being
  initiatives across all locations
• Stop smoking groups
• Health checks on site
• Fresh Fruit