EMEA Benefits Communication Survey 2013 Trends & projections overview

Benefits Communication Survey 2013 Trends & projections overview

Contents Introduction 3 Trends on Benefits Communication 4 Czech Republic 8 Denmark 12 France 16 Germany 20 Ireland 24 South Africa 28 Spain 32 Turkey 36 UAE 40 United Kingdom 44 Windows opportunity 48 About the survey 49

Introduction Welcome to Aon Hewitt s first yearly communications survey report. Over the past three months we have collated responses from over 290 organisations in 18 countries to help you both see and understand the trends in benefits communications across the region. Within this report we will provide insight into regional trends and compare them directly to the responses in local countries to determine current situations and future areas of focus. Electronic information, online content and social networking media are commons forms of communication used in every day life but just how far has new media infiltrated the work place? Is there an opportunity to engage with more s quicker, more effectively and at a lower cost without losing the personal tone of the message? Our research shows that while many organisations are currently taking a similar approach to communicating with s, times are changing and many of you are exploring or even already using different methods of communication. As expected, some countries are leading the way with the use of online portal technology and some prefer the feel of paper in their s hands. Regardless of the method of communication, the good news is that 8 of respondents are either already investing in communication or intend to do so shortly. The frequency of communication, the method and also the purpose of communication vary by location but the objective is the same to increase your s understanding and appreciation of their benefit package. Key Findings Who is ready to spend the most on communications (more than 15 per ) Current State UAE in the future Who provides online self-service Spain South Africa Who likes paper Czech Republic/ Ireland France Who prefers face-to-face communication Spain Czech Republic Who likes to communicate regularly (more than once a year) France Who believes they are communicating most effectively UAE Who plans to use TRS or begin communicating about benefits in the future Czech Republic 3

Trends on Benefits Communication The majority of companies which took part in this survey communicate regularly with s and this trend is increasing. They usually communicate once a year, but whatever the frequency and methods of communication adopted, unfortunately two out of three companies consider their communication to be only moderately effective! Even if participating companies are mainly focused on social communication, a large majority of them are willing to communicate on Health & Benefits policy especially key changes - within the next three years. Finally, a minority of participants highlight the importance of communicating both flexible benefits and wellness. Current state 7 of respondents communicate about their Compensation & Benefits package, contributing to s awareness of Compensation & Benefits. Although more companies are choosing to communicate, with of respondents aiming to communicate in the future, at the moment 24% of companies are not communicating at all. 88% of respondents declare that they communicate at least once a year. But there are still 12% of respondents communicating less than once a year and not providing regular communication to s. Through communication, 44% of respondents want to strengthen social dialogue while only of respondents communicate to prevent risks and manage absence. However, risks can be mitigated by combining social messages with event-driven benefits and engagement messages. Do you provide s with information on their Compensation & Benefits package? 14% 7 7 If yes, how often? 3 38% 12% Several times a year Yes No Planned Once a year Less than once a year 4

What is the objective of your communication? Provide legal support 1 Manage absence and prevent risks Reinforce social communication ( survey, benefits attractiveness innovations, labour and management etc.) 44% Develop engagement and talent retention plan 38% 1 2 2 3 3 4 4 5 Communication practices Unsurprisingly email and online materials are the preferred method of communication. While this type of communication is immediate and easy to put in place, the messages are often generic with low levels of personal impact. 53% of companies still use printed material, which is surprising considering the focus many businesses have on Corporate Social Responsibility policies and the environmental impact of paper-based communication. More than 1 in 3 companies use an online self-service portal providing a cost effective method of communication. Despite the amount of interest in social media, few organisations have actively promoted their Compensation and Benefits package using this method. 78% of survey participants provide regular personalised communications (individual information) to s. Only do not provide any kind of regular communication. 3 provide communication only once a year with most participants communicating with s throughout the year. Interestingly, while the majority of participants declared that they communicate their s Compensation & Benefits package at least once a year, are not using a Total Reward Statement or some form of Benefits Communication (e.g. Annual Enrolment benefits guide). Only 28% of companies are currently using a Total Reward Statement or Benefits Communication, however, this trend seems set to increase (or almost double) when we see that 21% of respondents plan to provide a Total Reward Statement or some kind of Benefits Communicationin the future. Only 1 of respondents are satisfied with the effectiveness of their current communication strategy, which is low considering the variety of communication methods used by companies. 5

How do you communicate your Compensation & Benefits package? Printed materials 53% Email / online materials 64% Posters 19% Face-to-face presentations / roadshows / benefit fairs 33% Webex Manager cascades 23% Compensation / Benefits champions Helplines Social media Online self-service portal 3 Other 9% 2 3 4 5 6 7 How often do you issue personalised communications (excluding monthly payslips)? 4% 2 Monthly 4-6 times a year 2-4 times a year Once a year Never 3 Are you currently using Total Reward Statements or Benefits Communication? 21% 28% Yes No Planned How would you rate the effectiveness of your current communication to Employees? 1 Effective Not at all effective Moderately effective 62% 6

Communication perspectives and plans Even if email and online materials remain the preferred method of communication, there is a strong trend towards online self-service portals. We notice a more decentralised approach, passing responsibility to local line managers and even tho s: 54% of companies plan to provide some form of self-service personalised access to s and 29% of respondents plan to use manager cascading as a communication channel. At the same time, 48% of companies still believe that printed materials offer great value to their s. It seems that one channel of communication is not enough, with employers combining paper, people and online strategies. of companies are willing to devote a budget towards communication. Although declare they have no budget limit, 32% of respondents are willing to spend over 5 per per annum to effectively communicate their benefits policy to s. How do you plan to communicate your Compensation and Benefits package in the future? future? Printed materials 48% Email / online materials 6 Posters 2 Face to face presentations / roadshows / benefit fairs 4 Webex 9% Manager cascades 29% Compensation / Benefits champions 1 Helplines Social media Online self-service portal 54% Other 2 3 4 5 6 7 What budget would you devote to your Compensation & Benefits communication? No budget limit More than 15 per 10-15 per 5-10 per 1-5 per No budget 1 7

Czech Republic More than half of the responding companies in the Czech Republic communicate on a regular basis, with a strong focus on social communication: a trend significantly greater than throughout the rest of the region. The same focus is present when using managers to cascade communication. Despite these practices, few companies are satisfied with the effectiveness of their communication. There is clearly an opportunity for improvement, which seems to correlate to the interest in online self-service portals, Total Reward Statements and Benefits Communication. Current state 58% of companies communicate their current Compensation & Benefits package. This is slightly less than what we observed in other parts of, however, a quarter of respondents plan to communicate in the future. In the Czech Republic, companies communicate on a regular basis, at least annually. This is above the average for the region. The majority of respondents (6) prioritise social communication, but a third of them also communicate in order to respond to a legal obligation to provide information. This is in contrast to what can be observed elsewhere in. Do you provide s with information on their Compensation & Benefits package? 9 8 7 6 5 4 3 2 7 7 58% 2 1 14% Yes No Planned If yes, how often? 6 5 4 5 52% 43% 38% 3 2 12% Less than once a year Once a year Several times a year Czech Republic 8

What is the objective of your communication? Provide legal support 1 33% Manage absence and prevent risks Reinforce social communication ( survey, benefits attractiveness innovations, labour and management etc.) 44% 6 Develop engagement and talent retention plan 1 38% 2 3 4 5 6 7 Communication practices Even though the majority of respondents in are committed to paper-based communication (6),, over 7 of these respondents also use email and online communication. In addition, 7 also declare they prefer to use managers as a communication channel, which is far above the practices observed in the rest of (only 23%). However 18% of companies do not offer any personalised communication to their s. None use Total Reward Statements or some kind of Benefits Communication, however, 5 are considering introducing them. Unfortunately, none of the respondents viewed their communication as effective. How do you communicate your Compensation & Benefits package? Printed materials Email / online materials Posters Face-to-face presentations / roadshows / benefit fairs Webex Manager cascades Compensation / Benefits champions Helplines Social media Online self-service portal Other 8% 8% 9% 19% 23% 33% 33% 3 42% 42% 53% 64% 6 7 7 2 3 4 5 6 7 8 9 Czech Republic

How often do you issue personalised communications (excluding monthly payslips)? 4 3 3 2 2 18% 3 3 3 3 2 2 18% 1 Monthly 4-6 times a year 2-4 times a year Once a year Never Are you currently using Total Reward Statements or Benefits Communication? 6 5 4 5 4 3 2 28% 21% Yes No Planned How would you rate the effectiveness of your current communication to Employees? 8 7 6 5 4 3 2 current communication to Employees? 73% 62% 2 1 Effective Efficient Moderately effective efficient Not at at all all effective efficient 10 Czech Republic

Communication perspectives and plans Overall, there is an opportunity to develop the current communication strategy with the respondents. 7 of companies wish to increase communication through online self-service portals and face-to-face presentations in addition to the 42% of companies that currently use these methods. Paper materials remain of interest, but less so when compared with current practices (58% in the future vs. 6 currently). Finally, social media does not seem to be an emerging trend in the Czech Republic. 7 of companies surveyed in the Czech Republic are ready to devote between 1 and 15 per to communicate the Compensation and Benefits package, which is higher than what we can observe in the rest of the region. How do you plan to communicate your Compensation and Benefits package in the future? Compensation and Benefits package in the future? Printed materials Email / online materials Posters Face to face presentations / roadshows / benefit fairs Webex Manager cascades Compensation / Benefits champions Helplines Social media Online self-service portal Other 2 9% 8% 1 1 8% 29% 33% 4 48% 54% 58% 6 6 6 7 7 2 3 4 5 6 7 8 What budget would you devote to your Compensation & Benefits communication? 6 5 4 3 2 3 No budget 5 1 1-5 euros per 5-10 euros per 10-15 euros per More than 15 euros per No budget limit 11 Czech Republic

Denmark Companies in Denmark appear to have a mature communication strategy, without being fully satisfied about its impact. As most respondents do not seem to have a specific budget, companies may wish to find ways to improve the effectiveness of existing communication in order to maximize the impact of their investment. There seems to be a strong interest in communication on health insurance and pension schemes within the next 3 years. Current state 81% of respondents declare they communicate their Compensation & Benefits package, which is higher than average for the rest of the region. When Danish companies communicate, about one in two communicates several times a year. This is the highest frequency of communication of all other countries responding to this survey. Few companies communicate solely in response to their legal obligation to provide information. Danish participants focus on social communication, talent retention and development of s engagement. Do you provide s with information on their Compensation & Benefits package? 9 8 7 6 5 4 3 2 81% 7 7 1 14% 2% Yes No Planned If yes, how often? 6 5 4 38% 4 3 38% 3 2 1 12% Less than once a year Once a year Several times a year 12 Denmark

What is the objective of your communication? Provide legal support 1 1 Manage absence and prevent risks 14% Reinforce social communication ( survey, benefits attractiveness innovations, labour and management etc.) 39% 44% Develop engagement and talent retention plan 2 38% 2 3 4 5 Communication practices Emails and online communication are the most popular method to communicate the Compensation & Benefits package: more than 1 company in 2 uses this method and about 1 in 3 has already implemented an online self-service portal. Paper materials are still used but in a smaller proportion (3) than throughout the rest of the region. Although Danish companies are leading the way in providing regular communication, 28% of companies do not provide personalised communications when compared to throughout the rest of the region. 79% of respondents do not to use tools such as Total Reward Statements or Benefits Communication, which is much higher than the general trend observed throughout the rest of (). Only of respondents plan to introduce Total Reward Statements or some kind of Benefits Communications. Moreover, despite the strong propensity to communicate, only 21% of participating companies consider their communication as effective. How do you communicate your Compensation & Benefits package? Printed materials Email / online materials 3 53% 53% 64% Posters Face-to-face presentations / roadshows / benefit fairs Webex 2% 3% 19% 2 33% Manager cascades Compensation / Benefits champions Helplines Social media 2% 14% 23% Online self-service portal Other 9% 31% 3 42% 2 3 4 5 6 7 13 Denmark

How often do you issue personalised communications (excluding monthly payslips)? 4 3 3 2 2 1 3 34% 2 28% 2 9% 4% 3% Monthly 4-6 times a year 2-4 times a year Once a year Never Are you currently using Total Reward Statements or Benefits Communication? 9 8 7 6 5 4 3 2 79% 28% 21% 14% Yes No Planned How would you rate the effectiveness of your current communication to Employees? 7 6 5 4 3 2 21% 1 63% 62% 1 Effective Moderately effective Not at all effective Efficient Moderately efficient Not at all efficient 14 Denmark

Communication perspectives and plans Danish companies seem to be moving towards an increased use of emails and online materials (6 in the future versus 53% currently), to the detriment of paper materials. Although 3 of companies aim to establish an online self-service portal,this percentage is far lower than trends observed in the rest of (54%). We also note that a minority of respondents are using helplines () or social media (), placing Denmark broadly in alignment with the rest of the region. In addition, most of the companies participating (7) say they have no budget to devote to the communication of Compensation & Benefits package. Only 21% have 10 or more per to devote to this kind of communication. How do you plan to communicate your Compensation and Benefits package in the future? Compensation and Benefits package in the future? Printed materials 31% 48% Email / online materials 6 6 Posters 3% 2 Face to face presentations / roadshows / benefit fairs 2 4 Webex 2% 9% Manager cascades 14% 29% Compensation / Benefits champions 2% 1 Helplines Social media Online self-service portal 3 54% Other 14% 2 3 4 5 6 7 What budget would you devote to your Compensation & Benefits communication? 8 7 6 5 4 3 2 7 No budget 4% 1 1-5 euros per 5-10 euros per 10-15 euros per More than 15 euros per No budget limit 15 Denmark

France French companies communicate on a regular basis but, in contrast to the rest of the region, all participating companies seem to be both very attached to paper-based material and focused on risk prevention and absence management. However, like the rest of the region, French companies consider their communication moderately effective; with more than half indicating that Total Reward Statements and self-service portals are effective methods of communication. Current state While most of the participating companies communicate their Compensation and Benefits package, 21% do not deliver any communication to their s. However, unlike the rest of, when French companies do communicate, it is on a regular basis. All participating French companies communicate to prevent risks and absenteeism, compared to throughout the rest of the region. Social communication, engagement and talent retention are also communication issues for 43% of French companies. Do you provide s with information on their Compensation & Benefits package? 9 8 7 6 5 4 3 2 7 7 71% 21% 14% Yes No Planned If yes, how often? 6 5 4 3 5 5 3 38% 2 12% Less than once a year Once a year Several times a year 16 France

What is the objective of your communication? Provide legal support 1 29% Manage absence and prevent risks 10 Reinforce social communication ( survey, benefits attractiveness innovations, labour and management etc.) 44% 43% Develop engagement and talent retention plan 38% 43% 2 4 6 8 10 12 Communication practices 64% of respondents use paper to communicate their Compensation & Benefits package (versus 53% throughout the rest of ). Using emails and online materials is less popular in France than the rest of the region (43% compared to 64% in the rest of ). In contrast, we noticed a more sustained use of managers as a channel for Compensation & Benefits package communication than in the other participating companies in. Moreover, nearly half of participating companies provide an annual personalised communication. 6 of all companies are currently using or plan to introduce Total Reward Statements or some kind of Benefits Communication. This percentage is higher than anywhere else in. Nevertheless, 63% of companies consider their communication only moderately effective and, nearly a quarter not at all effective. How do you communicate your Compensation & Benefits package? Printed materials Email / online materials Posters Face-to-face presentations / roadshows / benefit fairs Webex Manager cascades Compensation / Benefits champions Helplines Social media Online self-service portal Other 9% 14% 14% 19% 23% 33% 3 3 3 3 43% 53% 64% 64% 2 3 4 5 6 7 17 France

How often do you issue personalised communications (excluding monthly payslips)? 5 4 4 3 3 2 2 1 communications (excluding monthly payslips)? 4 3 31% 2 23% 4% Monthly 4-6 times a year 2-4 times a year Once a year Never Are you currently using Total Reward Statements or Benefits Communication? 6 5 4 3 2 31% 28% 38% 31% 21% Yes No Planned How would you rate the effectiveness of your current communication to Employees? 7 6 5 4 3 2 1 1 62% 62% 23% Effective Moderately effective Not at all effective Efficient Moderately efficient Not at all efficient 18 France

Communication perspectives and plans 79% of French companies are considering increasing their use of paper-based communications, @ compared to only 48% throughout the rest of. 5 of employers are considering the introduction of an online self-service portal as well as using managers to communicate with s. This is in line with the rest of. However, half of the respondents say that they have no budget to allocate to the communication of the Compensation & Benefits package. The other half is ready to spend at least 5 per for this kind of communication. How do you plan to communicate your Compensation and Benefits package in the future? Printed materials 48% 79% Email / online materials 5 6 Posters 2 Face to face presentations / roadshows / benefit fairs 3 4 Webex 9% Manager cascades 29% 5 Compensation / Benefits champions 1 14% Helplines 14% Social media 14% Online self-service portal 54% 5 Other 2 3 4 5 6 7 8 9 What budget would you devote to your Compensation & Benefits communication? 6 5 4 3 2 5 No budget 1 1-5 euros per 2 5-10 euros per 10-15 euros per 2 More than 15 euros per No budget limit 19 France

Germany Aligned with the trend, participating companies in Germany communicate on a regular basis. However, respondents seem to prefer using on-line communications such as emails self-service portals. On the other hand, German companies are more critical on the effectiveness of their communication than the rest of countries. Current state 71% of companies communicate the Compensation & Benefits package to their s. 6 of them communicate on an annual basis (compared to in the entire region) One third of German respondents communicate several times a year with 21% of companies planning to communicate more frequently in the future (compared to of respondents throughout the rest of ). For 3 of companies, communication is mainly social. Only 29% of companies communicate in order to develop engagement and retain talent (against 3 throughout the rest of ). Do you provide s with information on their Compensation & Benefits package? 9 8 7 6 5 4 3 2 7 7 71% 21% 14% Yes No Planned If yes, how often? 7 6 5 4 3 6 3 38% 3 2 12% Germany Less than once a year Once a year Several times a year Germany 20

What is the objective of your communication? Provide legal support 1 21% Manage absence and prevent risks 21% Reinforce social communication ( survey, benefits attractiveness innovations, labour and management etc.) 3 44% Develop engagement and talent retention plan 29% 38% 2 3 4 5 Communication practices 79% of companies use emails and online materials to communicate (compared to 64% in the entire region). Even though the majority (64%) of respondents frequently use paper-based communication, 43% also use online self-service portals. Once again, the desire to move to online self-service is stronger in Germany than in the rest of. Half of German companies communicate the Compensation and Benefits package more than once a year. Only 14% currently provide a Total Reward Statement or some kind of Benefits Communication but encouragingly, 21% of respondents plan to provide it in the future. Finally, nearly 2/3 of companies consider their communication moderately effective, which is slightly higher than for the rest of the region. 3 consider their communication not at all effective against only of respondents in the rest of. How do you communicate your Compensation & Benefits package? Printed materials Email / online materials Posters Face-to-face presentations / roadshows / benefit fairs Webex Manager cascades Compensation / Benefits champions Helplines Social media Online self-service portal Other Compensation & Benefits package? 53% 19% 33% 21% 23% 3 43% 9% 64% 64% 79% 2 3 4 5 6 7 8 9 21 Germany

How often do you issue personalised communications (excluding monthly payslips)? 6 5 4 3 2 5 3 3 2 14% 4% Monthly 4-6 times a year 2-4 times a year Once a year Never Are you currently using Total Reward Statements or Benefits Communication? 7 6 5 4 3 2 14% 28% 64% 21% 21% Yes No Planned How would you rate the effectiveness of your current communication to Employees? 7 6 5 4 3 2 1 64% 62% 3 Effective Moderately effective Not at all effective Efficient Moderately efficient Not at all efficient 22 Germany

Communication perspectives and plans While emails and paper-based communication are very popular with German companies, we also see a strong desire to develop online self-service portals (71% of respondents plan to introduce a portal in the future, compared to only 54% of respondents throughout the rest of ). Unlike the rest of, respondents are more willing to spend budget on the communication of their Compensation & Benefits package; with 5 willing to spend between 1 and 10 per. How do you plan to communicate your Compensation and Benefits package in the future? Compensation and Benefits package in the future? Printed materials 48% 64% Email / online materials 6 64% Posters 2 Face to face presentations / roadshows / benefit fairs 29% 4 Webex 9% Manager cascades 21% 29% Compensation / Benefits champions 1 Helplines Social media Online self-service portal 54% 71% Other 2 3 4 5 6 7 8 What budget would you devote to your Compensation & Benefits communication? 6 5 4 3 2 21% 29% 1 21% 14% No budget 1-5 euros per 5-10 euros per 10-15 euros per More than 15 euros per No budget limit 23 Germany

Ireland The aim of communication strategies for participating companies in Ireland is primarily to retain talent and develop engagement: printed and online materials are the preferred media and personalised communications are provided on a regular basis. Respondents appear to be satisfied with the impact of their communication, however, they are moving towards online tools and social media perhaps to overcome tighter communication budgets than elsewhere in. Current state 72% of Irish companies communicate their Compensation & Benefits package and plan to, which is much higher than what we observe throughout the rest of (). Nearly 5 communicate annually, and only 1 communicate less than once a year. Engagement and talent retention are the key communication issues for the participating companies. Only communicate solely to comply with their legal duties - far less than for all other respondents in. None of the Irish responsents use communication to prevent risks or manage absence. Do you provide s with information on their Compensation & Benefits package? 9 8 7 6 5 4 3 2 72% 7 7 14% Yes No Planned If yes, how often? 6 5 4 4 38% 38% 3 3 2 1 12% Less than once a year Once a year Several times Germany a year 24 Ireland

What is the objective of your communication? Provide legal support 1 Manage absence and prevent risks Reinforce social communication ( survey, benefits attractiveness innovations, labour and management etc.) 28% 44% Develop engagement and talent retention plan 38% 44% 2 3 4 5 Communication practices 6 of companies prefer paper-based and online communications. Although in the minority, of respondents use managers as a communication channel; a similar trend to that found throughout the rest of. Note that no company uses social media, helplines or WebEx to deliver information on the Compensation & Benefits package. Most Irish companies provide personalised communication on a regular basis (5 communicate once a year and communicate monthly). Only 1 never provide personalised communications, which is lower than for all other respondents throughout. A third of participating companies already use Total Reward Statements or some kind of Benefits Communication and nearly a third plan to introduce it in the future. The proportion of companies not using a Total Reward Statement or Benefits Communications is lower than we observe in the rest of the region (39% compared to ). Despite the above, only of companies consider their communication to be effective, compared to 1 of respondents throughout the rest of. How do you communicate your Compensation & Benefits package? Printed materials Email / online materials Posters Face-to-face presentations / roadshows / benefit fairs Webex Manager cascades Compensation / Benefits champions Helplines Social media Online self-service portal Other 9% 1 19% 23% 28% 33% 3 53% 6 64% 6 2 3 4 5 6 7 25 Ireland

How often do you issue personalised communications (excluding monthly payslips)? 6 5 4 3 2 5 3 2 1 1 4% Monthly 4-6 times a year 2-4 times a year Once a year Never Are you currently using Total Reward Statements or Benefits Communication? 6 5 4 3 2 33% 28% 39% 28% 21% Yes No Planned How would you rate the effectiveness of your current communication to Employees? 7 6 5 4 6 62% 3 2 1 Effective Moderately effective Not at all effective Efficient Moderately efficient Not at all efficient 26 Ireland

Communication perspectives and plans 5 of respondents plan to use emails and online materials in the future, compared to 6 throughout the rest of. We notice less use of paper-based materials as well, although paper is still more prevalent in Ireland (61%) than the rest of the region (48%). 39% of companies say they wish to use more face-to-face meetings and roadshows, although only 1 currently use these channels. We also observed an increase in the use of online self-service portals and social media to communicate the Compensation & Benefit package. 8 out of 10 respondents state that they do not have a budget to devote to the communicate of their Compensation & Benefits. This is much higher than the rest of. Only of companies are able to spend between 1 and 5 per, and only do not to have a budget limit. How do you plan to communicate your Compensation and Benefits package in the future? Compensation and Benefits package in the future? Printed materials 48% 61% Email / online materials 5 6 Posters 2 28% Face to face presentations / roadshows / benefit fairs 39% 4 Webex 9% Manager cascades 29% 28% Compensation / Benefits champions 1 1 Helplines Social media Online self-service portal 39% 54% Other 2 3 4 5 6 7 What budget would you devote to your Compensation & Benefits communication? 9 8 7 6 5 4 3 2 81% No budget 1 1-5 euros per 5-10 euros per 10-15 euros per More than 15 euros per No budget limit 27 Ireland

South Africa Respondents from South Africa have a strong communication practice: they are used to providing regular, personalised communication. Nevertheless, participating companies in South Africa, as in many other countries, do not consider their communication fully effective. Facing tight communication budgets, companies in South Africa are very likely to use online media almost all plan to develop a self-service portal, which is the highest trend observed across. Current state A large majority of companies in South Africa (8) communicate their Compensation & Benefits package. Of these, 63% communicate their package regularly, compared to only throughout the rest of. All those who are not yet communicating their Compensation and Benefits package plan to do so in the future. 6 of respondents cited engagement and talent retention as the main objectives for communicating, compared to 38% throughout the rest of ). Only of respondents communicate solely in order to meet their legal duties. Do you provide s with information on their Compensation & Benefits package? If yes, how often? 9 8 7 6 5 4 3 2 7 6 5 4 3 8 7 7 2 14% Yes No Planned 62% 63% 3 38% 2 2 13% 12% Less than once a year Once a year Several times Germany a year 28 South Africa

What is the objective of your communication? What is the objective(s) of such communications? Provide legal support 1 Manage absence and prevent risks Reinforce social communication ( survey, benefits attractiveness innovations, labour and management etc.) 4 44% Develop engagement and talent retention plan 38% 6 2 3 4 5 6 7 Communication practices Paper-based materials and online self-service portals are the two main communication channels for the participating companies, both of which are higher than usage reports throughout the rest of (respectively 6 vs. 53% in and 5 vs. 3 in ). 9 of participants use personalised communication, 5 provide communication annually and only say they never use it. 4 of companies don t provide a Total Reward Statement or Benefits Communication but near a third plan to in the future. Finally, even though a number of positive trends are highlighted above, only of respondents consider their communication to be effective, which is lower than for all other countries in. 2 of companies feel that their communication is not at all effective. How do you communicate your Compensation & Benefits package? Printed materials Email / online materials Posters Face-to-face presentations / roadshows / benefit fairs Webex Manager cascades Compensation / Benefits champions Helplines Social media Online self-service portal Other 9% 19% 23% 2 33% 3 4 4 5 53% 6 64% 2 3 4 5 6 7 29 South Africa

How often do you issue personalised communications (excluding monthly payslips)? 6 5 4 3 2 5 3 3 2 4% Monthly 4-6 times a year 2-4 times a year Once a year Never Are you currently using Total Reward Statements or Benefits Communication? 6 5 4 3 2 3 28% 4 3 21% Yes No Planned How would you rate the effectiveness of your current communication to Employees? 8 7 6 5 4 3 2 7 62% 2 1 Effective Efficient Moderately Moderately effective efficient Not Not at at all all effective efficient 30 South Africa

Communication perspectives and plans 9 of participating companies say they plan to use a self-service portal as a channel to communicate their Compensation & Benefits package, which is nearly twice as high as the general trend throughout the rest of (54%). Other channels respondents plan to use include emails / online (6) and face-to-face communications (5). However, 6 of respondents say they have no budget to devote to the communication of their Compensation & Benefits package, compared to of respondents throughout the rest of. How do you plan to communicate your Compensation and Benefits package in the future? Compensation and Benefits package in the future? Printed materials Email / online materials Posters Face to face presentations / roadshows / benefit fairs Webex Manager cascades Compensation / Benefits champions Helplines Social media Online self-service portal Other 2 9% 1 29% 3 3 48% 5 4 5 54% 6 6 9 2 3 4 5 6 7 8 9 10 What budget would you devote to your Compensation & Benefits communication? 7 6 5 4 3 2 6 No budget Compensation & Benefits communication? 1 1-5 euros per 5-10 euros per 10-15 euros per More than 15 euros per No budget limit 31 South Africa

Spain Almost all of respondents communicate to s, and at a high frequency. However, similarly to views expressed by the majority of respondents throughout, participating companies from Spain are not satisfied with the effectiveness of their communications. Currently mainly using emails and online materials, participating companies want to focus more on communication channels such as roadshows, face-to-face presentations or managers cascading. Finally, communication on flexible compensation plans and health changes seems to be a priority over the next 3 years. Current state Almost all of the companies participating in the survey communicate their Compensation & Benefits package to their s; a much higher percentage (94%) than that observed throughout the rest of (7). These companies communicate at a regular rate: 53% of them declare to communicate once a year and 4 several times a year. Social communication is the main objective of 7 of respondents, compared to 44% for all other respondents throughout. Only 12% of respondents in Spain communicate solely to comply with their legal duties. Do you provide s with information on their Compensation & Benefits package? 10 9 8 7 6 5 4 3 2 94% 7 7 14% Yes No Planned If yes, how often? 6 5 4 53% 4 3 38% 3 2 12% Less than once a year Once a year Several times a year 32 Spain

What is the objective of your communication? Provide legal support 12% 1 Manage absence and prevent risks 18% Reinforce social communication ( survey, benefits attractiveness innovations, labour and management etc.) 44% 7 Develop engagement and talent retention plan 24% 38% 2 3 4 5 6 7 8 9 Communication practices Emails and online materials are the preferred channel of communication. 82% of companies in Spain use these materials to communicate their Compensation & Benefits package. 53% use an online self-service portal, which is higher than elsewhere in the region (3). On the other hand, other high-tech communication materials such as WebEx, social media and helplines are not being utilised to the same extent. Only 18% of participating companies never provide personalised communications to their s. Most of the companies provide personalised communication at an regular frequency: nearly two thirds issue personalised communications more than once a year. However, 53% do not use, and 12% do not plan to use, either Total Reward Statements or some kind of Benefits Communication. Regardless of the frequency of communication, only 12% of companies consider their communication effective. How do you communicate your Compensation & Benefits package? Printed materials Email / online materials Posters Face-to-face presentations / roadshows / benefit fairs Webex Manager cascades Compensation / Benefits champions Helplines Social media Online self-service portal Other 9% 19% 18% 23% 24% 33% 3 3 4 53% 53% 64% 82% 2 3 4 5 6 7 8 9 33 Spain

How often do you issue personalised communications (excluding monthly payslips)? 4 3 3 2 24% 3 29% 2 24% 3 2 18% 1 4% Monthly 4-6 times a year 2-4 times a year Once a year Never Are you currently using Total Reward Statements or Benefits Communication? 6 5 4 3 2 29% 28% 53% 12% 21% Yes No Planned How would you rate the effectiveness of your current communication to Employees? 7 6 5 4 3 2 12% 13% 1 63% 62% 2 Effective Moderately effective Not at all effective Efficient Moderately efficient Not at all efficient 34 Spain

Communication perspectives and plans Although emails, online materials and online self-service portals seem to be the preferred channels of communication for companies, 6 plan to hold face-to-face presentations in the future (an increase of 18% on current levels). 3 of Spanish companies also wish to use managers as channels to communicate the Compensation & Benefits package: up 12% on the number currently using this channel. These trends are all more important in Spain than throughout the rest of. In terms of budget, almost 5 of respondents have a budget of between 1 and 15 spend on communicating their Compensation & Benefits package How do you plan to communicate your Compensation and Benefits package in the future? Compensation and Benefits package in the future? Printed materials Email / online materials Posters Face to face presentations / roadshows / benefit fairs Webex Manager cascades Compensation / Benefits champions Helplines Social media Online self-service portal Other 2 12% 9% 1 18% 24% 29% 3 48% 53% 4 54% 6 6 6 88% 2 3 4 5 6 7 8 9 10 What budget would you devote to your Compensation & Benefits communication? 6 5 4 3 2 53% No budget 18% 1 1-5 euros per 12% 12% 5-10 euros per 10-15 euros per More than 15 euros per No budget limit 35 Spain

Turkey Even if companies in Turkey communicate to s, they communicate less regularly than participants from other countries. Another feature of these companies is that they are more likely to communicate solely to comply with their legal duties a much more marked trend than throughout the rest of. Finally, participating companies are quite satisfied with their communication and ready to devote higher budgets than respondents from other countries throughout.. Current state 69% of participating companies in Turkey communicate their Compensation & Benefits package. Of these, 61% do so annually and 28% do so several times a year (the latter compares to a rate of 3 for the entire region). Nearly half of all respondents site developing engagement and retaining talents as a driver for communicating. A third of companies also communicate to meet legal requirements.. Do you provide s with information on their Compensation & Benefits package? 9 8 7 6 5 4 3 2 7 7 69% 23% 14% 8% Yes No Planned If yes, how often? 7 6 5 61% 4 3 38% 3 28% 2 12% Less than once a year Once a year Several times a year 36 Turkey

What is the objective of your communication? Provide legal support 1 3 Manage absence and prevent risks 1 Reinforce social communication ( survey, benefits attractiveness innovations, labour and management etc.) 3 44% Develop engagement and talent retention plan 38% 48% 2 3 4 5 Communication practices Emails, online and paper-based materials are the main channels used to communicate the Compensation & Benefit package. These communications are often personalised: only 13% of companies say they never issue personalised communications to their s. Notwithstanding the fact that 2 of respondants plan to use TRS or some king of Benefits Communication in the future, 48% do not do so now.. Finally, almost a third of companies consider their communications to be effective, a higher number than throughout the rest of. How do you communicate your Compensation & Benefits package? Printed materials Email / online materials Posters Face-to-face presentations / roadshows / benefit fairs Webex Manager cascades Compensation / Benefits champions Helplines Social media Online self-service portal Other 4% 4% 4% 9% 4% 19% 1 1 1 23% 33% 3 41% 53% 64% 74% 2 3 4 5 6 7 8 37 Turkey

How often do you issue personalised communications (excluding monthly payslips)? 4 4 3 3 2 2 1 42% 3 2 2 13% 13% 8% 4% Monthly 4-6 times a year 2-4 times a year Once a year Never Are you currently using Total Reward Statements or Benefits Communication? 6 5 4 3 2 2 28% 48% 2 21% Yes No Planned How would you rate the effectiveness of your current communication to Employees? 7 6 5 4 3 2 2 1 5 62% 18% Efficient Moderately efficient Not at all efficient Effective Moderately effective Not at all effective 38 Turkey

Communication perspectives and plans More than half of participating companies (5) say they are ready to devote a budget to the communication of their Compensation & Benefits package with 19% willing to devote 15 per, which is more than twice the amount respondents from the rest of are willing to devote. Emails and online materials are the preferred communication channels for 6 of respondents. However, we notice a marked increase in the number of respondents planning to use communication channels such roadshows, meetings and online self-service portal in the future, when compared with respondents currently using these channels. How do you plan to communicate your Compensation and Benefits package in the future? Printed materials Email / online materials Posters Face to face presentations / roadshows / benefit fairs Webex Manager cascades Compensation / Benefits champions Helplines Social media Online self-service portal Other Compensation and Benefits package in the future? 4% 4% 4% 4% 2 4 3 9% 29% 1 54% 41% 48% 52% 6 6 2 3 4 5 6 7 What budget would you devote to your Compensation & Benefits communication? ation & Benefits communication? 6 5 43% 4 3 2 1 14% 9% 19% No budget 1-5 euros per 5-10 euros per 10-15 euros per More than 15 euros per No budget limit 39 Turkey

UAE All participating companies in the UAE communicate to s, with a strong focus on talent retention and engagement. These companies seem to prefer electronic and online materials, providing mainly personalised communication. However, participating companies do not escape the trend: effectiveness of their communication seems divided. Finally, few changes in communication practices are expected in the future, but new challenges, such as wellness communication, are on the agenda within the next 3 years. Current state All participating companies communicate their Compensation & Benefit package, with 7 doing so annually, which is much higher than seen in other countries throughout. 63% of respondents indicated talent retention and s engagement as a driver for communication, compared to just 38% throughout the remaining countries. None of the respondents communicate in order to prevent risks or manage absence. Do you provide s with information on their Compensation & Benefits package? 10 8 6 10 7 7 4 2 14% Yes No Planned If yes, how often? 8 7 6 5 4 3 2 7 3 38% 2 12% Less than once a year Once a year Several times a year 40 UAE

What is the objective of your communication? Provide legal support 13% 1 Manage absence and prevent risks Reinforce social communication ( survey, benefits attractiveness innovations, labour and management etc.) 2 44% Develop engagement and talent retention plan 38% 63% 2 3 4 5 6 7 Communication practices When they communicate, respondents prefer to use high-tech communication channels such as emails and online materials or online self-service portal. Although 38% of participating companies never deliver personalised communications to their s, 3 currently use Total Reward Statements or some king of Benefits Communication and a further 38% plan to do so in the future. The majority of respondents feel their communications are effective or moderately effective, with only 38% indicating that their communications are not at all effective. How do you communicate your Compensation & Benefits package? Printed materials Email / online materials Posters Face-to-face presentations / roadshows / benefit fairs Webex Manager cascades Compensation / Benefits champions Helplines Social media Online self-service portal Other 9% 13% 19% 23% 2 2 38% 33% 3 38% 53% 64% 2 3 4 5 6 7 41 UAE

How often do you issue personalised communications (excluding monthly payslips)? 4 3 3 2 2 1 38% 3 38% 2 13% 12% 12% 13% 4% Monthly 4-6 times a year 2-4 times a year Once a year Never Are you currently using Total Reward Statements or Benefits Communication? 6 5 4 3 2 38% 3 28% 2 38% 21% Yes No Planned How would you rate the effectiveness of your current communication to Employees? 7 6 5 4 3 2 3 38% 1 2 62% 38% Effective Efficient Moderately effective efficient Not at at all all effective efficient 42 UAE

Communication perspectives and plans There does not appear to be a significant change in practice relating to the channels used to communicate Compensation & Benefit packages, except for the emergence of Champions, which has a detrimental impact on the issue of paper-based materials.. Despite their positive approach to communications, nearly two-thirds of UAE respondents have no budget to devote to the communication of their Compensation & Benefits package. However, those that do have a budget, tend to allocated more than 15 per. How do you plan to communicate your Compensation and Benefits package in the future? Compensation and Benefits package in the future? Printed materials 13% 48% Email / online materials 38% 6 Posters 2 Face to face presentations / roadshows / benefit fairs 2 4 Webex 9% Manager cascades 13% 29% Compensation / Benefits champions 1 38% Helplines Social media 13% Online self-service portal 2 54% Other 2 3 4 5 6 7 What budget would you devote to your Compensation & Benefits communication? 7 6 5 4 3 63% 62% 2 2 No budget 1 1-5 euros per 5-10 euros per 10-15 euros per More than 15 euros per 13% No budget limit 43 UAE

United Kingdom 9 of participating companies in the United Kingdom communicate, at least once a year, to their s. They currently seem focused on talent retention and social communication but state they are ready to communicate more on wellbeing programmes and voluntary benefits in the future. They provide personalised communication, using online and paper-based materials as preferred channels: a trend that appears to be decreasing in favour of social media (more used than in the rest of the region) and self-service portals (a large number of companies plan to develop it). Current state 7 of participating companies communicate to their s about their Compensation & Benefits package, primarily annually. The reinforcement of social communications are the main drivers for communicating, closely followed by the development of engagement and talent retention. Do you provide s with information on their Compensation & Benefits package? 9 8 7 6 5 4 3 2 7 7 7 14% 14% 9% Yes No Planned If yes, how often? 6 5 4 48% 42% 38% 3 3 2 12% Less than once a year Once a year Several times a year 44 United Kingdom