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Issue #31: Sticks, Carrots, Parking Spots: Re-thinking Compensation

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Most FAQ by candidates: "What are your salary and benefits?" When compensation and benefits packages
 

Transforming Talent Insights

March 8 · Issue #31 · View online
Feeding the Passion for Transformation: Be it Talent, Culture, Work or HR

Most FAQ by candidates: “What are your salary and benefits?”
When compensation and benefits packages were originally created, the payment philosophy was largely based on a single breadwinner, wanting a pension, some medical and perhaps some support for saving to build a house. This meant that, in most companies, a fairly standard one-size-fits-all solution was used across the board.
Well, my friends, times are changin’. According to Michael Bush, CEO of Great Place to Work: “…, benefits have to be tailored for employees’ specific needs, not just general needs. Let’s say 75% percent of your workforce is under 30 and has no children. If you have benefits for people with children but not for people with pets, you’re signalling loud and clear that you don’t understand their needs, and you have to change that to transform your culture.”
As the world of work changes, jobs are being decoupled, more fluid-types of employment contracts emerge, high performing multi-disciplinary teams are the dream, multigenerational needs vary and multiple employers is the reality, so too does the way we look at the compensation and benefits we offer to people working for a company.
Nowadays, the compensation philosophy at many companies are becoming more like marketing science - e.g. seeing an employee as a consumer and segmenting into pivotal roles, life stages (with according "issues”) and giving special consideration to diversity and demographics. Also, many companies have understood (finally) that instructing their employees not to talk about their comp is a pipe dream and are being more proactive around educating on process, options and measures. Giving all parties involved (employees, managers, HR, finance, BAE’s etc.) a much better footing for planning and evaluating options. Thereby transforming the process of compensation and reward from a black-box to truly an attractive employer advantage.

There are more things in heaven and earth, Horatio - than are dreamt in your comp philosophy.
Philosophy: Guidelines To Get Out of Dysfunction
Why modernize Total Rewards? Here are 10 reasons. John Bremen Chantal Free- Willis Towers Watson Wire
UnJust Desserts by Mary Poppendieck
Compensation & Benefits Top Employer's Institute
The Business Case for Changing Approach
"TBB05: Total Rewards Compensation" from The Best Boss by Susan Ermisch
Attractive Options
4 Innovative Benefits That Will Help You Snag Top Talent
25 Rewards That Great Employees Actually Love to Receive | Inc.com
What is the most appreciated benefit at your work?
A few months ago, I had the pleasure of shooting around a few ideas with a client and former colleague, Rui Barbosa, on the topic of Total Compensation. We started with the question “what role does HR have in creating competitive advantage across the strategies to mitigate business challenges now - and in five years?” (we, ahem, later led with a shorter question). It was our opinion quite a large one.
If changing up your rewards philosophy is something you are looking at, particularly out of an employer value proposition point of view, please let me know and I would be glad to support you.
With that - on a Friday afternoon - I am going to take advantage of a going-into-the weekend benefit and take a walk in the sunshine. I hope you do too!
All my best regards,
Liz

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Elizabeth Lembke, Transforming Talent Consulting: www.transformingtalent.co and www.transformingtalent.de