“2016 Chief Digital Officer” study – digital responsibility is growing

In its latest “2016 Chief Digital Officer” study, Strategy& investigates who is responsible for overseeing digitization within companies. The findings show that a third of Swiss management bodies delegate this task to a Chief Digital Officer (CDO), particularly in the financial industry. The profiles of CDOs vary – but not their role.

The aim of the “2016 Chief Digital Officer” study conducted by Strategy& is to establish who is in charge of the digital transformation in the 2,500 largest listed companies in the world (including 49 in Switzerland). The term CDO refers to senior executives entrusted with the digitization strategy of their company. The evaluation clearly shows that: The Chief Digital Officer is taking the C-suite by storm. Whereas in 2015, 6% of study participants employed a CDO; in 2016 the number had already risen to 19%. 60% of the CDOs questioned were appointed between 2015 and 2016. Europe, the Middle East and Africa (EMEA) have the highest CDO density in the world, and the strongest growth (+30%) in the role. Switzerland is ranked fifth in Europe with 33%.

The Swiss financial services industry has clearly recognized the signs of the times, and is deploying the relevant management skills to ensure the consistent implementation of a digital strategy. The financial sector has the highest proportion of CDOs in Switzerland: insurance companies lead the way with 67%, followed by banks with 50%. They are digitizing not only their customer activities, but also their internal processes.

There is no typical CDO. Half of Swiss CDOs are members of the Board of Directors, 38% have individual titles such as “Head of Digital”, 6% hold the position of Vice President, and 6% are Directors. Almost two thirds were recruited from within the company. Only 13% of CDOs are currently female. 38% of CDOs held a previous function in marketing, sales or customer service. A third come with technical baggage, while a quarter have a background in consulting, strategy or business development. The importance of technical experience has increased. In 2016, 32% of CDOs originated from the technical sector. This represents more than twice as many as the previous year.

Find out more

Contact

Dr. Daniel Diemers
Partner Financial Services, Strategy&, Schweiz
+41 58 792 3190
daniel.diemers@strategyand.ch.pwc.com

5 micro-actions to drive Equal Pay in your workforce

Does Santa arrive on February 24 with Christmas presents for your daughters?

As parents we strive to treat our children the same, after-school activities, homework, pocket money, household chores – boys and girls get the same, the thought of making our daughters wait until almost the end of February for their Christmas presents whilst watching their brother open theirs on Christmas Day seems unthinkable!

This unthinkable however becomes a reality once we enter the grown up world of work. The average women in Switzerland needs to work 551 days longer than a man to earn the same salary, for the same work – this year’s equal pay day was on February 24. According to the European Commission, at the current rate of progress, the salary gap will close by 20772, by then my daughters will be 78 and 76 years old! And I (probably) sadly will not be around to witness this fundamental measurement of equality take place.

Government legislation regarding non-discrimination has been in force for years, and 73 countries in Europe have even gone so far as to legislate the representation of men and women on company boards. How come in-equal pay is still acceptable for equal work?

We can all make a difference to closing the gap by carrying out these conscious micro-actions every day:

Drive equal-pay for men and women with PwC

1. Set starting salaries based on internal benchmarks – not previous salary levels

As human beings, we are all susceptible to unconscious biases, one of these is called ‘anchoring’. This is where our mind gets fixed on an initial number (the previous salary), with the result that when it comes to offering a new salary, there is a tendency to anchor too much on someone’s current salary instead of what the job is actually worth.

A micro-action Google has taken is to exclude the candidate’s previous salary data from the hiring process. The results are clear – during 2015, women hired at Google received a salary increase on joining that was 30% higher on average than their male counterparts4.

Another simple action is to use pre-defined salary grids, the pay gap starts when people enter the workforce (in the UK, male apprentices are paid upto 2.0oo GBP p.a more than their female colleagues)5 widely communicating and tracking the adherence to these starting salaries will level the playing field.

 

2. Regularly track and monitor your workforce pay – know your numbers

Take emotion out of the equation by monitoring on an ongoing basis the compensation of your talent to identify and action any discrepancies. Research shows that 25% of Companies5 are not regularly tracking this data. In addition, we all want to attract the very best talent to our organization, over 90% of potential candidates will choose to work for an employer that publically states they pay equally.

 

3. Be aware of the “Breadwinner” bias – seek a challenger for your pay decisions

Have you ever awarded a higher pay rise to a man because you knew they were the sole income earner of the family? I know this is a hard question to answer no to truthfully. A solution could be to benchmark and seek input and challenge from peers and HR. When comparing multiple data sets, unconscious biases are mitigated and decisions based on fact and proof.

 

4. Review your reward policies to ensure fairness in remuneration practices

HR policies are the building blocks of how we manage the hire to retire cycle of our employees, often they can be: written, published and then set in stone. I encourage you to review these policies and practices to ensure there is fairness in all remuneration and recognition procedures. Be transparent with your workforce, clearly stating what you value and recognize, and how they will be assessed and rewarded. This ensures everyone has the tools and knowledge at their fingertips of what it takes to “get on”.

 

5. Become an EQUAL-SALARY employer

Finally, and most importantly, “Talk the Walk” – by becoming an EQUAL-SALARY employer. Every company and culture has a different approach to how they talk about salaries, for some it is taboo and others a dinner party conversation topic. The key is to recognize and understand where are the gaps (for top earners the gap is higher than low earners – 20% vs 5%7) and put in place process interrupters (e.g. user salary grid when discussing promotions) to permanently ensure we are proactively and objectively rewarding and promoting the men and women who deserve it.

Through these micro-actions every one of us can ensure Santa arrives on the same day for everyone.

 

PwC are partners with the EQUAL-SALARY Foundation – certifying companies that pay men and women equally around the globe.

 


Source

1http://bpw.ch/en/Politics/Equal-Pay-Day

2http://www.europarl.europa.eu/news/en/news-room/20170203STO61042/gender-equality-time-to-close-the-gap

3http://ec.europa.eu/justice/gender-equality/files/womenonboards/factsheet_women_on_boards_web_2015-10_en.pdf

4 https://rework.withgoogle.com/guides/pay-equity/steps/structure-your-pay-process/

5http://www.fawcettsociety.org.uk/policy-research/the-gender-pay-gap/?gclid=CjwKEAjwq5LHBRCN0YLf9-GyywYSJAAhOw6m7Ktl04l0_tK2GcqmxhlGIAgszYn5npUvYSPqcNzXVBoCg4Dw_wcB

6 http://www.pwc.com/gx/en/about/diversity/iwd/iwd-female-talent-report-web.pdf

7 http://www.equalpayportal.co.uk/statistics/

Assess your organisation’s Diversity & Inclusion program with PwC

We know that Diversity and Inclusion (D&I) is good for business. Organisations that invest in D&I report seeing a number of advantages, such as an increased ability to attract talent, greater innovation and improved financial performance.

At PwC, we’ve found that the most effective D&I programs are comprised of four dimensions:

  • Understanding the Facts of Today
  • Building an Inspirational Strategy
  • Equipping Leaders for success
  • Creating Sustainable Movement

Take our short survey to assess your organisation’s Diversity & Inclusion program

Our new survey enables you to self-assess your maturity across those dimensions.

Click here to take our short survey and get your personnal Inclusion & Diversity assessment

The survey is short and easy to use, and when you finish the survey, you’ll receive an assessment of where your program is strongest and where there are areas of opportunity, as well as providing a benchmark of how you compare to others in your region and industry.

Take our short survey and get your personnal Diversity & Inclusion assessment

For more information on interpreting the results for your organisation or advice on how to become more Diverse and Inclusive, please contact Sue Johnson:

Sue Johnson
Senior Manager, Inclusion & Diversity, PwC Geneva
sue.johnson@ch.pwc.com / +41 58 792 90 98

PwC Legal: Immigration Alert Switzerland (11 May 2017)

New labour market restrictions for Romanian and Bulgarian nationals

Background

As of 1 June 2016, labour market restrictions were lifted for the gainful employment of Romanian and Bulgarian nationals hired locally in Switzerland. Thus, for the past twelve months, citizens of these two countries have had free access to the Swiss labour market.

Under the terms of the Agreement on the Free Movement of Persons (AFMP), the so-called ‘safeguard clause’ allows the Swiss Government to reintroduce temporary restrictions on the access of Romania and Bulgaria nationals to the Swiss labour market if the number of new arrivals exceeds a certain threshold. Between June 2016 and May 2017, the number of Romanian and Bulgarian nationals applying for long-term work and residence permits exceeded the threshold.

New labour market restrictions

On 10 May 2017, the Swiss Government decided to limit temporarily the number of long-term work and residence permits (B-permits) for Romanian and Bulgarian nationals to a maximum of 996 B-permits to be released quarterly over the next 12 months. Short-term L-permits are not affected.

The Swiss Government justified its decision based on the fact that, since June 2016, a large number of Romanian and Bulgarian nationals had obtained work permits for seasonal employment in sectors that have above-average unemployment rates.

How does this impact employers/employees?

Romanian and Bulgarian nationals holding B-permits and who will continue to be employed in Switzerland are not affected by the restrictions outlined above. However, the long-term employment of Romanian and Bulgarian nationals not yet residing legally in Switzerland might become more difficult due to the limitation of B-permit quotas to 996 over the next 12 months. Swiss employers may nevertheless continue to employ Romanian and Bulgarian nationals on the basis of short-term L-permits, which are not limited by a quota.

***

PwC will continue to monitor the Swiss immigration authorities’ practice at the federal and cantonal levels very closely, and we will advise all clients about any upcoming changes.

 

Please reach out to us should you wish to have more information on this alert.

 

Your PwC contacts:

Mirela Stoia
PwC Geneva
+41 58 792 91 16
mirela.stoia@ch.pwc.com

Martin Zeier
PwC Basel
+41 58 792 52 74
martin.zeier@ch.pwc.com

Insights: Football leagues 2.0

The last two decades have seen a significant increase in the global appeal of sports leagues and teams which have broken national and continental boundaries. Some leagues, most notably the Premier League and the NBA, have been pioneers in taking their sports to new markets, with others following suit by leveraging their brand and sporting achievements in pursuit of the commercial opportunities presented by new markets.

As an example, the recent launch of a new brand identity by Juventus FC, who swapped the Torino crest for a sleeker and more neutral logo, was welcomed by sports marketers as a bold move to establish the team as an ambitious sports brand that is not confined within the limited geographical and commercial borders of Italian football. On the other hand, Juve fans in Torino were more sceptical about the move, expressing their fear that the club is losing its roots and affiliation with its home city.

Another interesting trend is the rise in new football leagues in the US and Far East paying hefty sums to attract talent to the top of their game from established European leagues, such as Shanghai International Port Group F.C.’s acquisition of Brazilian stars Hulk and Oscar, while at the same time trying to nurture home-grown talent. Although perhaps not sustainable, for sports brands the commercial attractiveness of these markets is undeniable.

Based on these developments, what are some of the scenarios we might see play out in the future?

1. Geographical expansion of leagues and clubs 
With leagues and clubs generally not being able to scale their business internationally at the desired pace, a potential geographical expansion to new territories could start with early regular season games being played abroad (similar to the NBA). This could pave the way for the creation of new inter-continental league formats with the participation of teams from multiple continents.

2. Creation of a new closed league system in Europe with guaranteed spots for top teams based on their commercial and sporting performance
Euroleague Basketball pioneered the first closed league system in Europe, and although it is embroiled in an ongoing dispute with the FIBA, football clubs and governing bodies can draw many lessons from its experience. So far, the UEFA has managed to stave off any breakaway efforts to create a European Super League by working closely with the ECA and conceding more privileges to the elite clubs. Nevertheless, top European clubs may well continue to seek to increase their popularity and revenues across borders by developing a more attractive competition format with guaranteed spots and a match schedule suitable for their international fan base.

3. Proliferation of new leagues and formats leveraging existing sports brands, such as e-sports or women’s leagues
Paris St-Germain, Manchester City FC and FC Schalke 04 are some of the latest clubs to create e-sports franchises in the hope of tapping into new demographics and geographies. Additionally, women’s football has gained significant popularity in mature sports markets through the performance of their national teams (e.g. USA, Japan, Australia, Canada, UK), representing fertile ground for the expansion of women’s football leagues.

In sum, as big football clubs shift their focus to new fan bases to sustain their growth, the commercial appeal of scenarios such as those mentioned above will become increasingly difficult to ignore. Keep an eye on our site for all the latest developments.

Contacts:

David Dellea
Advisory Director
+41 58 792 2406
david.dellea@ch.pwc.com

Ioannis Meletiadis
Advisory Manager
+41 58 792 1462
ioannis.meletiadis@ch.pwc.com

 

PwC Legal: Immigration Alert UK (30 March 2017)

Article 50 has been formally triggered by the UK government

Article 50 of the Treaty of Lisbon has yesterday been triggered by the government serving as the formal notification of the United Kingdom’s intention to withdraw from the European Union. Theresa May triggered the official process in a letter to the EU which was delivered by Sir Tim Barrow to the President of the European Council, Donald Tusk, this afternoon in Brussels.

Key themes from Ms May’s letter to Mr Tusk included:

  • Engaging with one another constructively and respectfully
  • Putting citizens of both the UK and the EU first
  • Working towards securing a comprehensive agreement and working together to minimise disruption
  • Paying particular attention to the Republic of Ireland which is the only land border that the UK has with an EU member state

The letter also makes clear that the UK does not seek membership of the single market and that the EU position that the four freedoms of the single market are indivisible and that there can be no “cherry-picking” is understood and respected.

As previously advised, there will be no immediate changes to the immigration rules regarding EU nationals currently living and residing in the UK, nor conversely for those UK nationals currently living and residing in the EU.

The final Article 50 agreement will need to be agreed by the EU member states, the UK and the European Parliament. Any EU Treaties will continue to apply to the UK until such agreements enter into force or until the two year period of negotiations has ended. Should there be no agreement by this two year mark, it may be that a request for an extension of negotiations is put in place by unanimous agreement of all EU member states.

We would also like to remind you to register for our next live webinar in our ‘Beyond Brexit’ series called “Beyond Brexit – what’s the deal?” on 27th April 2016 at 10am GMT, using the link below:

http://www.pwcwebcast.co.uk/webcast/2017_April_BeyondBrexit/

Our industry experts will be discussing what we can expect from the two year Brexit negotiations and what sort of deal we may be heading toward. Please do also visit our dedicated Brexit site www.pwc.co.uk/brexit where you can access our podcasts, webcasts, blogs and various other materials to help guide and support you during this period.

Please reach out to us should you wish to have more information on this alert.

 

Your PwC contact:

Mirela Stoia
PwC Geneva
+41 58 792 91 16
mirela.stoia@ch.pwc.com

 

Winning the fight for female talent: How to gain the diversity edge through inclusive recruitment

Gain the diversity edge through inclusive recruitment

Today, more and more CEOs regard talent diversity and inclusion as vital to their organisation’s ability to drive innovation and gain competitive advantage. And as businesses across the world inject greater urgency into their gender diversity efforts, we’re seeing an intensifying focus on hiring female talent. In fact, 78% of large organisations tell us they’re actively seeking to hire more women – especially into more experienced and senior level positions.

PwC’s new report, Winning the fight for female talent, explores how organisations are seeking to deliver on their gender diversity attraction goals. We also examine the impact of these approaches and – more generally – how they’re matching up to the career aspirations and diversity experiences and expectations of the modern workforce.


Download the full report here.

 

Steady progress in boosting female economic empowerment, but gender pay gap still a major issue

PwC Women in Work Index

Prize of pay parity in OECD could mean US$2 trillion increase in total female earnings

Latest PwC Women in Work Index reveals:

  • Gradual improvement in female economic empowerment in OECD
  • Nordic countries still lead the way, with Iceland, Sweden and Norway taking top 3 spots
  • Poland climbs into top 10 thanks to gains in cutting female unemployment
  • Other top 10 places held by New Zealand, Slovenia, Denmark, Luxembourg, Finland and Switzerland
  • But gender pay gap poses major challenge, with parity still decades if not centuries away
  • Potential prize of closing the gap could boost total female earnings by US$2 trillion

21st February, 2017 – Slow but steady progress continues to be made in OECD countries towards greater female economic empowerment, according to a new PwC report.

But the gender pay gap continues to be a major issue, with the average working woman in the OECD still earning 16% less than her male counterpart – despite becoming better qualified.

The latest PwC Women in Work Index, which measures levels of female economic empowerment across 33 OECD countries based on five key indicators, shows that the Nordic countries – particularly Iceland, Sweden and Norway – continue to occupy the top positions on the Index. Poland stands out for achieving the largest annual improvement, rising from 12th to 9th. This is due to a fall in female unemployment and an increase in the full-time employment rate.

PwC analysis shows that there are significant economic benefits in the long term from increasing the female employment rate to match that of Sweden; the GDP gains across the OECD could be around US$6 trillion.

pwc_infographic

When it comes to closing the gender pay gap, countries such as Poland, Luxembourg and Belgium could see the gap fully close within two decades if historical trends continue. But much slower historical progress in Germany and Spain means that their gap might not close for more than two centuries, although making this a policy priority could accelerate progress. The gains from achieving pay parity in the OECD are substantial – it could result in a potential boost in female earnings of around US$2 trillion at today’s values.

Picture1
Download the full report here.

 

Contacts:

Hans Geene
Partner
+41 58 792 9124
hans.h.geene@ch.pwc.com

Charles Donkor
Partner
+41 58 792 4554
charles.donkor@ch.pwc.com

New report: PwC’s 20th Global CEO Survey – Harnessing the power of human skills in the machine age

The talent challenge: Harnessing the power of human skills in the machine age

pwc_ceo survey_2017

With the rise of automation, we’ve reached a point where we’re questioning the role people play in the workplace. How to achieve the right mix of people and machines in the workplace is the critical talent question of our age.

Fifty-two percent of CEOs say that they’re exploring the benefits of humans and machine working together and 39% are considering the impact of Artificial Intelligence on future skills needs. This is a delicate balancing act for CEOs in every sector and region.

However, you can’t have a machine age without humans and 52% are planning to increase headcount over the next 12 months. They are focused on obtaining the skills that they need to create a world where humans and machines work alongside each other.

Different skills will be needed, roles will disappear and others will evolve. Some organisations will need fewer people, but others will need more. There will be a rebalancing of human capital as organisations adjust.

Exceptional skills and leadership will be needed, and yet 77% of CEOs say they see the availability of key skills as the biggest business threat. Todays in demand skills are exclusively human capabilities – adaptability, problem solving, creativity and leadership. Software cannot imitate passion, character or collaborative spirit. By marrying these skills with technology, innovation can thrive and organisations can succeed in competitive market places.

CEOs have an enormous challenge ahead of them; it is the role of business leaders to protect and nurture their people to show that in the technological age, humans are their priority.

Our new report – The talent challenge: Harnessing the power of human skills in the machine age – looks at the dilemmas facing CEOs and their HR teams in today’s environment and how their businesses can stay ahead.

Picture1
Download the full report here.

 

Contacts:

Hans Geene
Partner
+41 58 792 9124
hans.h.geene@ch.pwc.com

Charles Donkor
Partner
+41 58 792 4554
charles.donkor@ch.pwc.com

P&O global research: ‘The Ethics of Incentives’

PwC is working with Professor Alexander Pepper and Dr Susanne Burri of The London School of Economics on a ground-breaking global study into the ethics of incentives and the fair distribution of income in society.

As a senior business leader, we would very much value your contribution to this piece of work. Our survey takes a maximum of 20 minutes and includes questions which are designed to investigate the complex views we all have about pay fairness. Please click on the link below:

Survey

Please submit the survey by Friday 27th January 2017.

All responses will remain confidential – but there is an option to sign-up for an advance copy of the findings if you so wish.
I hope you will find the time to contribute.

Contact:
Dr. Robert W. Kuipers
PricewaterhouseCoopers AG
Birchstrasse 160, 8050 Zurich
Switzerland

Email: robert.kuipers@ch.pwc.com
Phone: +41 58 792 4530

If you have any questions, please write to us at SurveyAdmin@us.pwc.com