US-headquartered Abbott Laboratories has seen a 36% take up of the total reward statements (TRS) it launched to its 4,000 Ireland-based staff last October. This compares to the current over-90% take-up rate among its 32,000 US staff.
Speaking at WorldAtWork’s Total Rewards 2011 conference in San Diego, Denise Johansen, director of international compensation and global programmes at Abbott Laboratories, pointed out that when total reward statements were first launched to US staff, they too had a lower take-up rate. “We feel [the Irish take-up rate] is a strong number for the first three months.”
The Irish total reward statements, which largely emulate those launched to the pharmaceutical organisation’s US-based staff in June 2009, offer staff an on-demand, interactive online statement.
For example, the US statement shows, among other elements, the ‘future value’ of retirement plans giving values (both total pot and monthly pension payouts) to be achieved if staff stayed with the firm until age 55 and until age 65. It also shows how share plans will grow in value. “This [future value option] is very compelling for us,” said Johansen.
The ‘future value’ page was adapted for Ireland to be one page for ‘pension’ and one page for ‘share plans’.
Abbott Laboratories also launched a candidate TRS which allows new recruits with job offers to model their compensation options based on their job offer letter, and for recruiters to do the same on behalf of executive appointments.
A global implementation strategy was developed in 2010 to speed up the rollout process ahead of extending TRS to additional countries over the coming years. “We were looking for ways to simplify and standardise the approach so it is easier to launch elsewhere,” said Johansen. “Local country managers will use the standard version and localise as appropriate. The aim is to reduce implementation time to 10 months.”
Read more on total reward statements
Read also: Blogging from the USA, Debi O’Donovan’s insights from WorldAtWork Total Rewards 2011