HR Professional - February/March 2009 - (Page 40) COVER STORY SEGMENTATION As organization’s struggle with finding and keeping the talent they need to grow and prosper, one new compensation trend that’s been showing success in the battle for brains is segmentation BY DUFF MCCUTCHEON EGMENTATION MEANS REVIEWING YOUR BUSINESS strategy, identifying the job families that contribute most to the strategy, and providing a deal that’s specific to these players. “If you look at the compensation deal at most companies, the executives have their own package, the sales team get another, and everyone else is paid and rewarded in exactly the same way,” says Ravin Jesuthasan, global practice leader of Towers Perrin’s Rewards and Performance Management Practice. “That doesn’t make a lot of sense— organizations should be directing rewards in a way that reflects the pharmaceutical companies, where competition for key talent—R&D scientists and professionals involved in early stage development and concept formulation—is beyond fierce. Big pharmaceutical companies are identifying where their competitive advantage is created and being very explicit about who in their organizations have a direct S ‘‘ putting your money where you think the returns are. role key job families play relative to their business model and the value these contributors bring to the company.” Segmentation as a compensation model has seen the most growth in impact on that competitive advantage. “Then they’re building a compensation deal that accomplishes three things: attracts best-inclass talent into key job families; engages that talent so they want ’’ 40 F e b r u a r y / M a r c h 2 0 0 9 351596_ASL.indd 1 10/24/07 8:18:05 PM HR P ROF ES SI O N AL http://www.aslconsulting.com
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