Network - Winter 2012 - (Page 25)
“Custom Tailored” Total Rewards: A Move Away from
IS YOUR COMPENSATION PLAN fitting like an old suit? Fraying at the edges, doesn’t really fit where it should, or a little too restrictive in all the wrong places? With the challenges of the current war for talent, organizations need a plan that is customized to fit the organization and catch the eye of your top prospects that will be lining up to come and try it on for size! As organizations’ human capital strategies become more complex, so do the values of critical employees. What we once thought were strong retention tools may no longer apply. With pressure to work longer hours, be more productive, stay connected, and be innovative employees’ needs are evolving and organizations’ total reward strategies must change to accommodate. of baby boomers that need to be enticed to continue working as well as Gen Y employees who are savvy job shoppers. Both of these groups have rather different needs and reinforce that one size does not fit all. Added to this is the continued impact of the increasing sophistication of technology which puts other factors into play such as: • Increased specialization of jobs and skills required. • Increased pace of change in organization structures as well as job responsibilities Similarly, the custom-tailored approach has both up and downsides. Therefore you must determine what the right balance is to maximize the benefits and minimize the downside in order to win.
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BY ARDEN DALIK AND GAIL EVANS, CHRP – THE WYNFORD GROUP Job Families:
• Do you have distinct job families that are groups of jobs in similar functions? • Do they have any unique market rates? (e.g., Sales, Engineering. IT) • Are they paid differently, e.g., commissions for Sales positions.
• Do you have any locations that have unique market/hardship/cost-of-living situations? e.g. Remote camp location, Higher cost centre
Unique Jobs: Scarce or hot skills
• By examining your organization from these different angles it will give you a perspective on the degree of customization that you should consider and flag some key areas or compensation elements.
The Branded Total Rewards Strategy
We have previously written about aligning your total rewards offering with your brand (HR Reporter, June 2011). A branded strategy incorporates the company’s brand into their reward design so that they attract candidates that will be a great fit right from the start. We’re now seeing top employers taking this one step further though customized rewards. Within their branded total rewards offering, we’re frequently working with clients to further tailor their offerings to help them win the “Talent Games.” Obviously, there is great appeal in the onesize-fits-all approach; internal consistency, ease of administration, consistent message, et cetera. There are also downsides, especially in today’s environment with the current mix
How to Create the Right Custom Fit?
In order to strike the balance between uniformity and customization of your total reward offering, you can take the following steps:
2) Use the Best Material
Once you’ve identified the potential areas/ jobs within your organization that could benefit from customization, high-quality information will make the difference between an iron-on patch versus a tailored fit.
1) Measure and Assess
How does your current program “fit” your organization?
• Up-to-date role descriptions, reporting relationships, scope, etc. • Skill/competency profiles for the roles • Career progression • Competitive Information: • Appropriate peer comparisons • Job composites for unique roles • Reliable, robust market data sources • Appropriate data cuts HUMAN CAPITAL O WINTER 2012 O 25
• Do you have several distinct levels of jobs in your organization, such as support, operational, professional, managerial, and executive? Determine how important each of the program elements such as base, bonus, training, benefits, and time off are to the employees in those levels
Table of Contents for the Digital Edition of Network - Winter 2012
Why Recruiting Underperforms
Smart HR For Small Business
“ Custom Tailored” Total Rewards
How’s Your Energy Literacy? Part 2
Natural Resource Employers Facing Unique Challenges
Index of Advertisers/ Advertisers.com
Network - Winter 2012