Does Your Compensation Plan Reflect Your Culture?
The failure to link compensation to culture is one reason so many companies are struggling with a crisis of employee disengagement.
It is no surprise that in this tight talent market the number of organizations who consider retention a major concern has increased.
In a recent Compensation Best Practice’s Report revealed that while 44% of companies think their employees are fairly paid, only 20% of employees said they feel that way… a staggering disconnect! It also found that 59% percent of organizations fear losing their hard-won talent.
Employee recognition and engagement is fast becoming more than a 2018 HR predicted challenge. It is a reality!
In our company, the Global Job Architecture (GJA) provides managers and employees with a clear roadmap for career progression and how compensation is linked to it, along with a compensation navigator that underpins our culture of transparency and trust.
Key ingredients for an effective strategy
- Get the hygiene factors sorted: Establish a solid foundation and job architecture to underpin and support your reward strategy. For example, SAP’s GJA provides role clarity and a clear roadmap for career advancement and progression that is aligned and links to our core reward levers (base salary, bonus, equity).
- Provide a compelling benefits and wellbeing program: Our company has established unique benefits and an end-to-end wellness program that incorporates the three financial, physical, and emotional pillars to help our employees Run Healthy.
- Establish an integrated platform to drive digitalization of rewards programs: Create one platform to make it easy for your employees to easily consume their total rewards programs and to make it simple to navigate the roadmap.
- Provide impactful communications: Establish communications that resonate with your workforce – sell your offerings and proposition in a targeted way to meet the needs of all generations
- Go with transparency to build trust!
- Encourage your leaders to reward sponsors/champions: Educate and upskill them so they have the confidence to explain your reward strategy and have open and honest discussions with their employees about their rewards/employee value proposition.