Archive

Archive for the ‘Towers Watson’ Category

Which Employees Are Delaying Retirement and Why?

October 13, 2014 Comments off

Which Employees Are Delaying Retirement and Why?
Source: Towers Watson

AT A GLANCE

  • 34% of workers under 40 believe that retirement delays among older workers are restricting their career opportunities.
  • Aside from retirement savings, health and stress have the strongest links to retirement timing.
  • Offering employees greater retirement security can help employers cultivate a less stressed, healthier and more engaged workforce.
About these ads

Nearly One in Four Employers Say Private Health Insurance Exchanges Could Provide a Viable Alternative for Full-Time Active Employees in 2016

September 30, 2014 Comments off

Nearly One in Four Employers Say Private Health Insurance Exchanges Could Provide a Viable Alternative for Full-Time Active Employees in 2016
Source: Towers Watson

Results of a July 2014 survey of midsize to large employers by global professional services company Towers Watson (NYSE, NASDAQ: TW) showed that 28% said they had already extensively evaluated the viability of private exchanges. Nearly one in four (24%) said private exchanges could provide a viable alternative for their active full-time employees as soon as 2016.

The results are from the 2014 Towers Watson Health Care Changes Ahead Survey, which was completed by 379 employee benefit professionals from a variety of industries and reflect health care benefit decisions for 2016 – 2017.

The survey also revealed that the top three factors that would cause employers to adopt a private exchange for full-time active employees are:

  • Evidence they can deliver greater value than their current self-managed model (64%)
  • Adoption of private exchanges by other large companies in their industry (34%)
  • An inability to stay below the excise tax ceiling as 2018 approaches (26%)

Renovating HR for the New World of Health Care

September 23, 2014 Comments off

Renovating HR for the New World of Health Care
Source: Towers Watson

For a variety of reasons, the health care industry has failed to keep pace with the drive for efficiency seen across much of corporate America in the last decade, when most HR functions streamlined processes, eliminated paper and centralized administrative activities. But with historic transformation shaking up the industry, HR is acting fast now to initiate needed change. Towers Watson’s 2014 HR Service Delivery and Technology Survey highlights several trends in efficiency and effectiveness taking hold these days: building and expanding employee service center approaches, leveraging self-service and HR portals, as well as the evolving roles of both centers of expertise and entity HR.

Thinking about transforming your HR service delivery model can be daunting. The first step is to clearly understand what the function is doing today and what your organization’s leadership wants from HR. HR leaders need to be actively engaged with senior management to understand the workforce implications of the transformation within the organization. Once you understand the gaps between the current state and desired future state, you can begin to create a new service delivery model and reset the priorities for both the function and its leadership.

The world’s 300 largest pension funds – year end 2013

September 3, 2014 Comments off

The world’s 300 largest pension funds – year end 2013
Source: Towers Watson

Total assets of the world’s largest 300 pension funds grew by over 6% in 2013 (compared to around 10% in 2012) to reach a new high of almost US$15 trillion (up from US$14 trillion in 2012). The P&I / Towers Watson global 300 research is conducted in conjunction with Pensions & Investments, a leading US investment newspaper.

Latin American and African funds had the highest five-year combined compound growth rate of over 16% (albeit from a low base) compared to Europe (12%), North America (around 6%) and Asia-Pacific (around 5%).

Defined benefit (DB) funds account for 67% of total assets, down from 75% five years ago. During 2013, DB assets grew by around 3%, compared to reserve funds (15%), defined contribution (DC) plans (over 9%) and hybrids (over 8%).

Sovereign funds continue to feature strongly in the ranking with 27 of them accounting for 28% of assets and totalling around US$4.2 trillion. The 113 public sector funds in the research had assets of US$5.8 trillion in 2013 and account for 39% of the total. Private sector industry funds (61) and corporate funds (99) account for 14% and 19% respectively of assets in the research.

2014 Global Talent Management and Rewards Study

August 26, 2014 Comments off

2014 Global Talent Management and Rewards Study
Source: Towers Watson

At a Glance

  • Attraction and retention drivers among employees have remained fairly steady, with base pay and career advancement continuing to be top priorities.
  • Less than one-third (32%) of employers report that their organization has a formally articulated employment deal.
  • Only 33% of employers say managers are effective at conducting career development discussions as part of the performance management process.

U.S. Employers Expect Health Care Costs to Rise 4% in 2015

August 21, 2014 Comments off

U.S. Employers Expect Health Care Costs to Rise 4% in 2015
Source: Towers Watson

U.S. employers expect a 4% increase in 2015 health care costs for active employees after plan design changes, according to global professional services company Towers Watson (NYSE, NASDAQ: TW). If no adjustments are made, employers project a 5.2% growth rate, putting absolute cost per person for health care benefits at an all-time high. Despite this cost trend, most (83%) employers consider health benefits an important element of their employee value proposition, and plan to continue subsidizing and managing them for both full-time and part-time active employees, according to the 2014 Towers Watson Health Care Changes Ahead Survey. They are, however, continuing to rethink company subsidies for spouses and dependents.

Of particular concern on the cost front is the Patient Protection and Affordable Care Act’s excise tax,* which goes into effect in 2018. Nearly three-quarters (73%) of employers said they are somewhat or very concerned they will trigger the tax based on their current plans and cost trajectory. More than four in 10 (43%) said avoiding the tax is the top priority for their health care strategies in 2015. As a result of the excise tax and other provisions of the health care reform law, CEOs and CFOs are more actively engaged in strategy discussions.

Enduring High-Performing Companies Pay Executives Differently From Other Companies in S&P 1500, Towers Watson Study Finds

August 6, 2014 Comments off

Enduring High-Performing Companies Pay Executives Differently From Other Companies in S&P 1500, Towers Watson Study Finds
Source: Towers Watson

High-performing companies design their executive compensation programs differently from many other organizations, according to a new study by Towers Watson (NYSE, NASDAQ: TW), a global professional services company. The study found that high-performing organizations, unlike other companies in the overall S&P 1500, place a greater emphasis on stock options, target compensation levels at market median rates and do not take a “one size fits all” approach to their executive pay program design.

“We conducted this study to see if companies with truly sustained high performance follow practices that differ from other companies,” said Todd Lippincott, North America executive compensation leader at Towers Watson. “The short answer is they do. In fact, we found that many high performers take approaches and differentiate their pay programs in ways that many observers, including proxy advisory firms, would view unfavorably.”

The study examined the executive compensation programs at 50 companies with the most sustained and consistent outperformance in total shareholder return versus the S&P 1500 over the past 15 years.

Follow

Get every new post delivered to your Inbox.

Join 937 other followers