The way we work has and will continue to change. And your organization needs to constantly assess your rewards programs to make sure they're keeping up, too. Recently, we've seen developments in a few key areas:
Geography. Labor markets are not locked into one location anymore, and companies need to compete nationally for talent.
Job Definition. New roles and skills are evolving to meet new demands, and companies need to adapt to those changes.
Employee Development. Employees are looking for career development with the autonomy to explore career paths and possibilities, and companies need to support their desire for growth and movement.
Below are five actions to ensure your compensation program keeps up with new demands:
1. Understand your business strategy. Can you articulate your company’s business strategy, and do you have the required people, skills and resources required to support that strategy? How do resources and investments need to shift to support the strategy and how have you planned for that? Does your rewards philosophy match your business strategy currently and for future business needs?
2. Design your jobs to support your strategy. Consider that in the last 5 years, Financial Analysts evolved from requiring a Finance degree and business savviness to nowadays also requiring (or desiring) data science and predictive analytics skills. Know the roles and skills and responsibilities required to meet your strategy and ensure that your job descriptions and overall architecture supports that need.
3. Create flexibility with career paths. Once you have your job architecture developed, ensure you have the right people in place to fill those jobs by encouraging internal mobility and lateral movement. Not only does this enhance employee career development and engagement, but it helps your organization remain agile so you can quickly adapt and thrive.
4. Match your rewards to your strategy. Total Rewards is not a one size fits all solution. What may be considered “market competitive” may not work for you. And what works for one role or person within your organization may not work for all. If your strategy allows for flexibility, your rewards program should, too. And what about your incentives? Is your rewards program providing motivation in support of your current strategy or is it still aligned to the past?
5. Partner with your employees to make sure it all works. Do you know what your employees value and do your reward programs support that need? Check-in with your employees frequently and maintain an open dialog so you know which programs are working and which may need a redesign.
The bottom line: Change is the only constant in our dynamic business environment, and companies must stay attuned to the market and their employees to remain competitive. Examine your employee value proposition, total rewards philosophy, compensation programs, and job architecture to ensure your company is ready.