Does Your Compensation Plan Reflect Your Culture?

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

  1.  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).
  1. 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.
  1. 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.
  1. 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
  1. Go with transparency to build trust!
  1. 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.

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