Delivering a True Total Reward Strategy Robert Cross Interim Head of Reward TUI UK & Ireland. EB Live September

Transcription

1 Delivering a True Total Reward Strategy Robert Cross Interim Head of Reward TUI UK & Ireland EB Live September

2 Agenda Introductions The Total Reward Journey What We ve Done What We re Doing Remember the Passion! 2

3 Robert Cross - Introduction Over 25 year s reward experience Consultancy - HayGroup - Mercer - Towers Watson - PwC/Monks Partnership In House Reward Management - T-Mobile - Telecomms - Northgate Info Systems IT/HR - ESAB/Charter International - Engineering 3

4 TUI Travel PLC - Global

5 Fast Facts UK & Ireland Fast Facts: è Two strong brands: First Choice and Thomson è Merged in September 2007 è Employing a team of 13,000 è Taking 7.5million customers on holiday è Flying 65 aircraft, to more than 100 destinations è 928 shops (and 52 First Choice franchises) è 5 call centres

6 The Total Reward Journey Employee feedback Areas of Focus Reward Model Communications Bonus, Incentives and LTIPs Recognition

7 Employee Attitude Survey Completed September % satisfied overall vs 46% Towers Perrin National Norm 71% agreed they had the information needed around their benefits Economic backdrop Local factors Workshops More Work to do!

8 Our Tota l Reward Model Salary Leadership Financial Rewards Variable Pay Share Plans Total Remuneratio n Non- Financial Rewards Involvement & communication Opportunity Recognition Total Reward Benefits Quality of working Life This will only work if the approach.. Is valued by employees Is cost effective Delivers business strategy Reflects external influences

9 Communications Be Special Be Rewarded Employee segmentation 12 month communications plan Be Rewarded More Lunch and Learn Be Involved employee forum

10 Bonus, Incentives and LTIPs One size doesn t fit all Alignment across senior leaders Move to deferred bonus framework Be a Great Performer Link to personal objectives Extend bonus opportunity share in success Customer facing reward strategy Reflects our Customer Mantra and Customer Promises Rewards right behaviours

11 Recognition One approach Be Recognised Managers toolkit Thank you cards, e-cards and certificates Be Special Awards Long service awards Awards ceremony

12 Primary Measure EBITA after exceptionals Secondary measure strong cash flow The level of UK&I Profit (plus our performance against cash flowtargets) determines bonus opportunity 1 What we ve done Asses our current communication of the total reward offer across all employee groups, define a strategy for improvement and implement the necessary changes that will increase understanding and imbed a strategy of pay for performance to improve employee retention and engagement. Highlight as part of the review any salary hotspots and agree a plan with the board to address priority issues. Provide more detail on our Bonus Scheme Relaunch the Concessions Policy The Framework: On- Target Profit Performance 1. Financial Performance On Target Financial Performance 60% is determined by Financial Performance 40% is determined by personal performance 12.5% Bonus Opportunity Management Bonus Scheme: The Numbers 2. Personal Performance The personal element of your bonus (40%) rises & falls - dependent on your personal performance Below Expectations Delivers to Delivers Above Significantly Exceeds The management bonus scheme is a key part of your total reward package. It provides a monetary reward which is directly linked to: 1. the financial performance of TUI Travel PLC, TUI UK&I the primary financial measurement is EBITA after exceptional items 0% Bonus Bonus Range 12.5% Bonus 12.5% Bonus the secondary financial measure is a strong cash flow 7.5% to 12.5% 2. your personal contribution to our success by measuring your achievement against your objectives Enhanced Award There are some key numbers you need to understand: If you: Deliver Above Expectations, or Group EBITA Threshold (after exceptionals) Achieved? Bonus Range Bonus Range Significantly Exceed Expectations 337.5m An Enhanced Award can be applied 12.5% to 16.25% 12.5% to 18.75% This number must be achieved before any bonus payments are made in TUI Travel PLC UK&I Profit Threshold (after exceptionals): 138.6m This must be achieved before any bonus payments are made in TUI UK&I ü Target EBITA (after exceptionals) Achieved? 146.7m Max EBITA (after exceptionals) 153.2m 10% Bonus Opportunity 20% Bonus Opportunity ü Achieved? ü Achieved? ü Impact of Personal Performance Branded On-Boarding Documents Revitalise Reward Communicatio ns Overseas Launch our EAP

13 What We re Doing Asses our current communication of the total reward offer across all employee groups, define a strategy for improvement and implement the necessary changes that will increase understanding and imbed a strategy of pay for performance to improve employee retention and engagement. Highlight as part of the review any salary hotspots and agree a plan with the board to address priority issues. Relaunch Be Rewarded More A new look &: Fast Cashback Premium Cashback Price Comparison on BRM Discount Guarantee Product Search Shopping Angel Total Reward Modeller Available on Click Self Complete Total Value Customise for different areas

14 What We re Doing Review our Current Approach to employee recognition and identify best practice to devise a consistent approach in agreement with the UK&I Board. Plan for communications and launch and implement across the business

15 Rewarding passionate people Responses included Ø Feedback Ø Praise and recognition Ø Career planning discussion ongoing Ø Buddy system for the first few months Ø Opportunity to support on next wave of recruitment using their experiences to affect change where necessary Ø Help them to understand the role they play in the wider business Ø Social media blogging of experience of TUI Any other thoughts? Assuming we got the benchmarking right at the beginning, this is unlikely to be about money. 15

16 Retaining passionate people Ownership? Line Manager, HR and L&D Ø Induction process Ø Appraisal Ø Succession Planning Learning & Development programmes Ø Horizons Ø Graduate programmes Ø Leadership programmes Fam trips Ø Focussed on areas of expertise Global mobility Ø In line with succession planning Are we passionate about Reward? What turns us on?! 16

17 Bringing Employees Closer to Our Customer Product Launch Day 17