HR Professional - February/March 2009 - (Page 41) its future, and R&D scientists are key in developing new products. Segmentation would involve cre at i ng i nc ent ive pl a n s rewarding things that these workers can directly control: coming up with new ideas, getting concepts approved by inter-clinical trials, making them profitable. “ S eg men at ion me a n s focused reward systems where the payouts are driven by what these folks contribute. The compensation package is very specific to what they do and is different from the rest of the company,” says Jesuthasan. to stay and contribute; and focuses them on the things that add the most value,” says Jesuthasan. “It uses the pay system—particularly incentives and the like—as a sort of surgical tool for creating focus on the things that create the most value.” For example, consider an R&D team at a pharmaceutical company. The company has identified cancer drugs are key to STRATEGIC HR If you want to demonstrate how your HR initiatives are aligned with overall business strategy, segmentation is a fast way to do it. Segmentation means planning your hiring strategy the way finance would do it—you’re putting your money where you think the returns are. “Segmentation means HR is sitting down with senior management to help map out strategy that’s going to drive shareholder value over the next three to five years,” says Jesuthasan. “And HR is right there saying this is how we’re going to invest in the talent to execute those initiatives and do it differentially. It’s truly game defining.” CLOSER T O HO M E 1 2 3 Take a look at your organization’s overall goals and objectives and identify key contributors—those who contribute most to your company’s short-term and long-term success. If you can’t live without them, consider a different comp strategy. Closely related to segmentation, differentiation means being rigorous around measuring performance and identifying and rewarding high performers versus lesser performers. Consider the total rewards package: Your segmentation strategy could involve other perks including flexible work arrangements, more vacation or education/training opportunities for key contributors. w w w.H RThought L ea der. c om F e b r u a r y / M a r c h 2 0 0 9 41 http://www.hrthoughtLeader.com
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