brexit talent and rewards survey results
TRANSCRIPT
Survey Results Webcast – 2 March 2017
BREXIT
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Brexit Talent and Rewards Survey
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Presenting today
Richard Veal
Phone: +44 17 3727 4634
Martin Emmerich
Phone: +49 89 51657 4830
Tamsin Sridhara
Phone: +44 20 7170 2914
Immediately after Brexit clients told us that talent issues had
become more important
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Source: WTW Brexit Compass Survey (July 2016)
Not applicable responses removed
Which people issues have become more a priority as a consequence of Brexit
(% of respondent companies)
Mobility
55%
Critical skills
42%
Employee engagement
42%
Business choice
Since then, market volatility has created immediate issues and we
have greater clarity of the UK Government’s position
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UNKNOWN
₤
Limitation on
movement Sterling
FTSE Restrictions on
freedom to trade
Business as usual
Change course
Market volatility Brexit terms
June 2016 March 2019March 2017
5
Brexit’s impact seven months on
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Brexit … seven months on
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Almost 3-in-5 organisations expect their business in the UK will be significantly
affected by Brexit, but are less worried than in July 2016
Note: Very or extremely significant impact
Source: WTW Brexit Talent and Rewards Survey (July 2016 & February 2017)
UNITED KINGDOM EUROPE (excl. UK)
What do you think the impact of Brexit will be for your business in the UK?
Percentage significant or very significant
62%
SEVEN MONTHS ON
58%
July 2016
February 2017
71% 45%
July 2016
February 2017
4% 26%
Brexit … seven months on
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Brexit is being increasingly seen as just another disruption to be navigated
To what extent is Brexit another disruption to be navigated as part of the normal course of
business or a fundamental challenge to the way you do business?
ANOTHER DISRUPTION
NEUTRAL
FUNDAMENTAL CHALLENGE
62% 10%
28%
United Kingdom
59%15%
26%
Overall
52%28%
20%
Europe (excl. UK)
Source: WTW Brexit Talent and Rewards Survey (February 2017)
SEVEN MONTHS ON
Talent management is the biggest HR issue arising from Brexit
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Source: WTW Brexit Talent and Rewards Survey (February 2017)
HR CHALLENGES
9
Preparing for change: A focus on
talent
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Talent attraction and retention, and staff mobility have become more important
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But the focus of concern has shifted compared to 2016
Have the following talent issues become more or less of a priority for your organisation in
response to Brexit and the resulting market uncertainty? Percentage more or much more
37%
32%
16%
33%
30%
TALENT
Mobility
Attraction &
Retention
Attraction and retention of EU
nationals with specific skills into the
UK
Attraction and retention of sufficient
number of staff within the UK to
meet business needs
Attraction and retention of UK
nationals in the rest of the EU
Mobility of senior staff between the
UK and the rest of EU
Mobility of other staff between UK
and rest of EU
Source: WTW Brexit Talent and Rewards Survey (February 2017)
32%
31%
11%
26%
26%
United
Kingdom
Europe
(excl. UK)
Nearly half of the companies have or planning to review talent needs and
resourcing in the UK and a third their talent sourcing Europe
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Has your organisation completed any of the following talent related activities? Or do you plan
to do so in the next three months?
24%
6%
4%
5%
3%
4%
29%
43%
33%
18%
5%
2%
5%
13%
16%
15%
28%
16%
4%
34%
35%
49%
65%
64%
78%
90%
0% 20% 40% 60% 80% 100%
Source: WTW Brexit Talent and Rewards Survey (February 2017)
TALENT
Assessing the type and number of staff
needed in the UK
Reviewing talent resourcing and pipeline
in the UK
Reviewing talent resourcing and pipeline
in other EU member states
Reviewing locations of operations in the
UK and across the EU
Moving one or more roles from the UK to
another EU member state
Moving one or more roles from the UK to
outside the EU
Implementing hiring freeze in the UK
In progress or planned in
next 3 monthsConsidering Not planning
nor considering
Completed
13%
The survey (and our experience) tell us that most companies for whom
Talent is a concern are at Step 2 in assessing talent exposure
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1. Talent questions
and data2. Analytics 4. Monitor impact
3. Decisions and
Action
Critical roles
Hard to recruit roles
Mobile roles
Decisions
nsights
Hiring i Manager insights
Actions
TACTICAL Talent Analytics Process
TALENT
What questions do we need
answering
What are the analyses telling
usHow well have we managed
the issue
What are we going to do
when
Those considering operating locations and moving roles are at an earlier
stage in the process
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TALENT
STRATEGIC Talent Planning Process
Over one third companies released communication on Brexit
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UK companies are more active in Brexit communications
Source: WTW Brexit Talent and Rewards Survey (February 2017)
COMMUNICATION
UNITED KINGDOM EUROPE (excl. UK)
32%
13%
55%
9%
26%
65%
45% 35%
Yes – a specific communication on Brexit
Yes – included as part of wider communication
Has your organisation released any communication to employees on Brexit in the last 3
months?
Yes – a specific communication on Brexit
Yes – included as part of wider communication
For those not communicating on Brexit … the issue is not top of
mind
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We have too
much else going
on right now
46% 28% 22% 14% 5%
Source: WTW Brexit Talent and Rewards Survey (February 2017)
Brexit is not a big
enough business
issue
It is too far off to
be worth
communicating
We are unsure
what to
communicate
We are leaving
managers to
deal with
issues
COMMUNICATION
Reasons why your organisation has not issued a communication on Brexit?Percentage “to a great extent”
16
Other responses: Reward
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Less concern and more tactical response on reward issues
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Packages for Expats and Pensions more important issue
Have the following reward issues become more or less of a priority for your organisation in
response to Brexit and the resulting market uncertainty? Percentage more or much more
REWARD
Total
Rewards
Source: WTW Brexit Talent and Rewards Survey (February 2017)
£ UK rewards
packages less
attractive for non-
UK nationals
23% 22% 21%
20% 15%
Pension costsExpatriate
arrangements
Base pay
increases
Incentive
arrangements
Employers are keeping a watching brief on rewards strategy
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Has your organisation completed any of the following reward related activities? Or do you plan
to do so in the next three months?
9%
4%
6%
13%
6%
6%
4%
16%
15%
16%
15%
10%
9%
5%
19%
68%
71%
73%
78%
84%
86%
91%
78%
0% 20% 40% 60% 80% 100%
Source: WTW Brexit Talent and Rewards Survey (February 2017)
REWARD
Making cost-of-living adjustments for Expats
Taking steps to reduce pension risks
Making adjustments to 2017 target setting
Making ad-hoc reward decisions to
attract/retain non-UK nationals
Reduced base pay increases
Freezing base pay
Making adjustments to 2016 incentive
payouts
Providing additional protection for Expat staff
moving to the UK
Main focus is on expat and non-national staff
In progress or planned in
next 3 monthsConsidering Not planning
nor considering
Completed
3%4%
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Any Questions?
Richard Veal
Phone: +44 17 3727 4634
Martin Emmerich
Phone: +49 89 51657 4830
Tamsin Sridhara
Phone: +44 20 7170 2914
Read more
Insights on Brexit
Statement from Willis Towers Watson's Head of
Great Britain
Statement from Willis Towers Watson's Head of
Western Europe
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