WorldatWork closed its 61st year by continuing efforts to

deliver knowledge and connection to the professionals

who attract, motivate, retain and engage the workforce,

as well as by looking to and planning for the future of the

profession and WorldatWork’s continuing role. In 2016, we

educated and advocated for compensation, benefits and

total rewards professionals, and provided key benefits to

our members — all with the goal of helping them deliver

positive organizational results.

The pages that follow highlight our efforts in the past year

and pave the path for the future of the association.

WorldatWork’s

2016 Annual Report

OUR MISSIONEmpower professionals to become masters of their fields by:

Providing thought leadership in total rewards disciplines from the world’s most respected experts

Ensuring access to timely, relevant content

Fostering an active community of total rewards practitioners and leaders.

The world of work is rapidly changing, and WorldtWork’s

2016 activities reflect your association’s dedication to

equip TR and HR professionals with knowledge and tools

to keep pace with that change.

In 2016, our commitment to professional certification as

a means of demonstrating mastery in these challenging

times remained steadfast. But we also recognized

the demands on and unique knowledge required by

professionals focused on the specialty topics of executive

compensation and sales compensation. Therefore,

we continued to expand our foothold as the leaders in

education. We complemented those efforts with broad

research on performance management, new mediums

for delivering content and a position as a leading

voice in public policy matters that affect total rewards,

we continue to serve as the authoritative source for

professionals engaged in transforming the workforce.

As we look back on 2016 and ahead to our future,

we want to extend our appreciation to the volunteers

who contribute their time and intellectual capital to

the organization. An organization is only as strong

as its people and, in WorldatWork’s case, we have

been fortunate to have the best and brightest join

us in our journey to serve TR and HR professionals

around the world.

Sincerely,

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Anne C. Ruddy, CCP, CPCUPresident & CEO, WorldatWork

Sara McAuley, CCP, WLCPChair, WorldatWork Association Board of Directors

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WorldatWork 2016 Annual Report / Thought Leadership 1

Future of Work ForumThe employee experience is a critical part of every organization’s success, resulting in higher profits and greater results.

Human resources and executive leadership are increas-ingly becoming strategic partners in creating a culture that enhances the employee experience and increases employee engagement and satisfaction. Held in March in New Orleans, we focused our 76 registered attendees on emerging trends like a growing contingent workforce, big data, people management and automation and a changing workforce — in addition to several areas from which successful companies build a positive employee experience.

WorldatWork NowAddressing the need for just-in-time information on key topics of critical interest to our audiences, we intro-duced our WorldatWork Now events in 2016. In March and September, 121

attendees joined us in either Phoenix or Chicago to spend a day focused on the topic of performance management. Led by experts from the consulting and academic worlds, the day featured dynamic discussions with experts and practitioners on this quickly developing topic.

Total Rewards Conference & Exhibition

Today’s busy total rewards profes-sionals work in a fast-moving, constantly changing environment. To solve challenges, improve

performance and advance professionally, we know these professionals need intelligence and ideas from the best and brightest in their field. Our annual, premier total rewards event drew 1,182 registered attendees to beautiful San Diego in June. For two and a half days, total rewards professionals had access to thought leaders in our profession, gathering strategic insights to develop forward-thinking plans as well as tactical, practical tools to make those plans a reality.

Since its inception, WorldatWork

has helped define and establish

the compensation and, later, total

rewards fields. We have built bodies

of knowledge by determining what

rewards professionals do in their jobs.

We created education to train them

and examinations to certify them.

At the same time, we recognize that

many practitioners who once focused

solely on rewards for the bulk of their

careers are now doing different and

more varied work. Due to changes

in the ways organizations operate,

professionals who are doing rewards

work have less time and need for

lengthy education and more desire for

immediate learning.

Acknowledging that our audiences

are looking for a different way to learn

and connect, in 2016 we discovered

new and interesting ways to deliver

our thought leadership to total

rewards practitioners through events,

advocacy, education and certification,

and key visibility initiatives.

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WorldatWork 2016 Annual Report / Thought Leadership 2

Executive Compensation Forum

WorldatWork held its inaugural Executive Compensation Forum in July 2016, in Huntington Beach, Calif. Reflecting

our understanding that learning from seasoned professionals who’ve “been there and done that,” we developed an event at which 36 attendees gained insights into the intricacies of executive compensa-tion. From hearing about peers’ experiences from inside the board room to learning about unforeseen pitfalls (and how to avoid them), the Executive Compensation Forum was an exclusive opportunity to engage with skilled practitioners and get an insider’s perspective not found elsewhere.

Spotlight on Sales Compensation

Sales compensation professionals want to drive sales at their organizations and see their careers

move forward. From learning to develop compensa-tion plans for new sales models to realigning sales roles and incentives, the 312 attendees who joined us in August in Chicago learned how to unveil new ideas to get the sales team’s attention and challenge existing ways of thinking with bold solutions and data-driven information. This once-again sold-out event drew professionals from across the sales compensation and operations fields to learn from best-in-class subject matter experts.

Total Rewards Canadian Conference

Recognizing the sizeable audience we have in Canada, the Total Rewards Canadian Conference was held in September in

Toronto. It continues to serve as the only Canadian-based gathering of total rewards professionals who are focused on compensation, benefits, work-life effectiveness, sales compensation and executive compensation. The two-day conference hosted 195 attendees and featured thought leaders who deliv-ered real-world solutions to challenging business and HR situations, insightful case studies and new ideas and practices. Attendees walked way with actionable ideas to maximize total rewards planning that would impact overall organizational goals.

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WorldatWork 2016 Annual Report / Thought Leadership 3

Advocacy

2016 Presidential Election

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total Rewards

2016 ElEction

All eyes were on Washington, D.C., for debates and, ultimately, the November 2016 presidential election. WorldatWork launched a custom webpage in March to detail both Republican and Democratic candi-dates’ total rewards positions. To ensure our

members’ voices were heard, we delivered a letter to the four major party campaigns in September, outlining our positions on several key total rewards issues. Throughout the year, we were present, listening and sharing key insights via social media. We live tweeted 21 presidential debates, four party convention acceptance speeches and one election night. We produced a cover story in the November edition of our member magazine, workspan. Incidentally, this featured piece would go on to win the silver award from Association Media & Publishing (AM&P) in the category of “Magazines: Feature Article Design.”

Fair Labor Standards Act (FLSA) Overtime Rules ChangePerhaps the most highly visible total rewards issue of 2016, our Public Policy team met with most of the U.S. House of Representatives and U.S. Senate offices to discuss the overtime rule and its implica-tions on the profession. The team actively led the Partnership to Protect Workplace Opportunity’s strategy and efforts as part of the Management, Lobbying, Policy and Communications committees. Our data on the final rule changes was city by members of Congress and other business advocates in numerous communications. As an organization, we hosted two webinars in June and July to share with attendees what the new rules would mean for organizations. We also presented two widely-at-tended panel sessions on the overtime changes at our 2016 Total Rewards Conference and Exhibition in San Diego. To fulfill our members’ needs for immediate and accurate information, we introduced “Breaking News Alerts” under the workspan brand, delivering those to email inboxes in May (release of rules) and December (injunction to stop the rules). Remembering the important role social media holds for the public at-large, which of course includes our members and audiences, we hosted a Facebook Live event to address the December injunction.

WorldatWork’s Position Candidate Letter

Our position letter, sent to the four major party campaigns in September, outlined the association’s positions on:

❙ Fair Labor Standards Act overtime-pay regulations

❙ The Mobile Workforce State Income Tax Simplification Act as it relates to reporting and withholding across the 50 states

❙ Employer-sponsored health-care benefits and, specifically, the 40-percenet excise tax, or the Cadillac tax

❙ Access for child- and dependent-care programs

❙ A repeal of the CEO pay-ratio requirement

❙ The Corporate Governance Reform and Transparency Act of 2016, legislation regulating proxy advisory firms.

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WorldatWork 2016 Annual Report / Thought Leadership 4

Education & Certification

Expert ConnectionWe launched our first Expert Connection virtual course, Creating Sales Compensation Principles — A Stakeholder’s Guide,

delivered by David Cichelli of The Alexander Group, in October. Designed to bring the subject matter expert directly to our audi-ence through a series of live online sessions, Expert Connection delivered real-time interaction with the instructor and peers. This inaugural course attracted 63 professionals responsible for sales compensation plans within their organizations. Using a prepopu-lated template, attendees were encouraged to fill in their company’s sales compensation principles and policies, then guided on how to receive policy adoption to ensure maximum buy-in and success within their organization.

Strategy and Design of Short-Term IncentivesWe launched this new executive compen-sation course in June. Held in Chicago, 10 professionals attended the two-day interac-tive course to learn the nuances of designing competitive short-term incentive plans to attract and retain executives.

Excel-Specific Virtual Classes

Building on the seemingly never-

ending need for more education

and training with regard to

Microsoft Excel, in 2016 we

launched three new Excel-specific virtual

classes, all featuring our Excel rockstar,

Dianne Auld.

Advancing Your Modeling Capabilities with the Power of Excel

In this class, attendees observed how Excel tools and formulas can be harnessed for powerful modeling of different scenarios, including effects on market positioning, costs of stock grant eligibility and of setting different incentive target levels on payout distribution patterns.

Analyzing and Automating Rewards Data with Excel Pivots and Macros

Here, attendees learned how to create pivot tables and charts to efficiently summarize large data sets along with how to add interactive tools for more robust analysis. During the session, Auld created a macro to automate repetitive tasks, which allows for more time to focus on using the data rather than building it.

Working Smarter and Faster with Excel Formulas, Charts and ASAP Utilities

In this session, attendees learned some of the most time-saving (and often unknown) tips in Excel, from creating charts keystrokes and templates to using ASAP Utilities to apply a single command to multiple worksheets.

■ CCP 297

■ CBP 69

■ GRP 194

■ WLCP 24

■ CSCP 37

■ CECP 25

■ ACCP 3Total 649

2016 Certifications

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WorldatWork 2016 Annual Report / Key Visibility Initiatives 5

Seal of DistinctionOriginally launched in 2012, in 2016 we transitioned the WorldatWork Seal of Distinction from a focus on workplace strategies and practices that help

employees achieve success both at work and home. Instead, we began reflecting on and celebrating organizations that offer a distinct and mutually beneficial work experience through a variety of programs, practices and cultural initiatives. We wanted organizations that are recognized as employers of choice that set the standard for employee engagement that leads to business success. Our members and audiences were excited about the shift in focus, and we saw a record-breaking 195 applications submitted. The 160 recipients represented a range of industries, including education, finance, government, health, law, manufacturing and pharmaceuticals.

National Work & Family MonthOctober marked the beginning of our 13th annual National Work & Family Month, a time designed to raise awareness

of the importance of work-life effectiveness. The initiative has grown into a highly-anticipated event that is nationally recognized by businesses, academics, federal agencies, work-life advocacy groups and others interested in making it easier for employees to succeed at work and at home. This year was of particular interest to several federal agencies, including the U.S. Office of Personnel Management, the U.S. Department of Labor and the U.S. Government Affairs Office. Each of these organiza-tions consistently and regularly used our hashtag (#WorkLifeWins) to talk about their unique initiatives. In addition, we hosted a Facebook Live event on the topic and, once again, led a blogfest on Huffington Post, which featured 19 posts throughout the month from a variety of internal and external subject matter experts.

Member PublicationsOur member publications, the monthly workspan magazine and quarterly WorldatWork Journal, continued to deliver topical, timely content to our membership and delivered multiple high points throughout the year. We dedicated our second quarter WorldatWork Journal to the topic of performance management, featuring four original case studies on the topic. The edition was in high demand among members, with many requesting additional copies to share within their organizations. In November 2016, workspan magazine’s featured cover story focused on the 2016 presidential campaign and its implications for total rewards professionals. This edition would go on to win a silver Excel Award from Association Media & Publishing in the category of “Magazines: Feature Article Design.” In addition, the workspan October cover story on tuition reimbursement as a perk to attract talent won a silver award from the American Society of Business Publication Editors.

WorldatWork 2016 Annual Report / Organizational Effectiveness 6

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Leadership TransitionAfter 17 years at the helm of the organization, our President and CEO Anne Ruddy announced in April her impending retirement in June 2017. A hiring committee comprised of Ruddy and several members of WorldatWork’s Association Board of Directors began searching for her replacement. “We needed to fill very big shoes and make sure we found someone who would be a good fit with the team we have in place, because

we have a great team,” said Sara McAuley, CCP, WLCP, lead director of the Association Board. Scott Cawood, Ed.D., CCP, was named as the association’s president and CEO in April 2017.

Website and workspan RedesignRecognizing the need to keep up with technology and mobile-friendly content presentation and delivery, a cross-functional team continued working toward a redesigned WorldatWork website and workspan magazine. With a goal of presenting the association in a mobile-first format, teams addressed future content, best-in-class practices for deployment and an overall better user experience. We will reveal both a redesigned website and workspan in Fall 2017.

WorldatWork 2016 Annual Report / Organizational Effectiveness 7

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2016 Financials

Statement of Financial PositionAssetsCash ............................................................ $1,008,000Accounts receivable, net ............................ 382,000Prepaid expenses and other ...................... 852,000Investments ................................................. 8,130,000Rent receivable .............................................. 323,000Property and equipment, net ..................4,967,000

Total Assets ............................................15,662,000

Liabilities and Net AssetsAccounts payable and accrued liabilities .................................... $2,450,000Deferred revenue ........................................5,367,000Deferred rent .................................................. 176,000Long-term liabilities ...................................... 703,000Unrestricted net assets ........................... 6,966,000

Total Liabilities and Net Assets......... 15,662,000

Statement of ActivitiesRevenue Education ................................................. $11,198,000Membership ................................................. 4,927,000Conferences ................................................4,602,000Publications and other ..............................1,753,000

Total Revenue ........................................22,480,000

ExpensesDirect cost of program delivery ...........$4,527,000Program support and development ......3,513,000Publications and member services ....... 2,797,000Sales and marketing ..................................5,394,000Administration and general ......................7,178,000

Total Expenses ......................................23,409,000

Result of Operations ....................................................................... ($929,000)

Investment Income ..........................................................................$450,000

Program Revenue

49.8% Education

21.9% Membership

20.5% Conferences

7.8% Publications and Other

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WorldatWork 2016 Annual Report / Vision for the Future 8

In a rapidly changing business environment, the issues and

challenges facing compensation, benefits, work-life effectiveness

and total rewards professionals are growing increasingly

complex. In 2016, we embarked on an initiative to develop a

three-year strategy to carry us from 2017 through 2020. This

strategy was designed not only to address those issues and

challenges our members and other audiences are facing, but

also to strengthen our long-term viability and ensure our own

workforce engagement. Key areas of focus in our next three

years are, of course, core compensation and rewards, along with

closer attention to our work in research, our deliverables in the

executive compensation and sales compensation specialties,

and broader opportunities around the globe. We look forward to

continuing to helping today’s — and tomorrow’s — total rewards

professionals as they learn, grow and connect.

Global Headquarters14040 N. Northsight Blvd.

Scottsdale, AZ 85260 USA

Washington, D.C. Office

1100 13th St. NW, Suite 800 Washington, DC 20005 USA

Canada

P.O. Box 4520, Postal Station A Toronto, ON M5W 4M4

CONTACT US877-951-9191 (United States and Canada) +1 480-922-2020 (other countries) Fax 480-483-8352 customerrelations@worldatwork.org