According to the latest industry report, around 69% of organizations believe that the changing nature of compensation strategies is essential for the future, but only 9% of org, are ready to address this progression.
In this agile and ever-evolving world, it's crucial to have the right compensation framework with the talent management strategy. While the reality is many organizations are still trying to figure the secret recipe to align organizational objectives with associates' expectations.
In the dynamic and diverse world, corporations need to make some bold decisions and look beyond the compensation strategy only and focus on 'Total rewards' to foster the best culture. To achieve this efficiently, organizations must focus on the fundamental human principles that will enable them to craft total rewards strategies.
A study reported about 65-70 % as the compensation-payroll impact for any org, which is a huge chunk, and still, organizations are figuring the magic wand to have the right balance. In the last decade, compensation strategy revolved around payroll, health insurance, and time offs, which was a more traditional approach. A new approach is to work on a personalized and holistic total rewards strategy which can attract and motivate the right talent. The tailored fit strategy will be the new norm, and C&B professionals need to present innovative ideas to address this massive change. It will be a mammoth exercise but will be a significant change. As per the famous saying, smooth seas do not make skillful sailors, and the same goes true for C&B professionals.
I believe we need to focus on the below principles:
- Connecting the dots with a purpose: Align the individual roles with the vision of the organization. This will help to establish the connection and foster the culture of being valued. Finding a real meaning in our professional commitments is like a dream come true, and it motivates the individual to give his best.
- Constant communication: One of the most challenging aspects is to render development feedback continuously, and organizations need to pivot on this aspect to encourage the culture of transparency.
- Entrepreneurial mindset: Freedom to learn and explore new skills without being judgmental will increase productivity. Investment in the right potential at the right time will heap rich dividends for individuals and for the organization.
- Teamwork: As they say, "Individual wins games, but teamwork helps to win the championship". Collaboration within the team is paramount and nurtures a positive and healthy competition within groups.
- Automation: With the increased usage of ML and AI, an organization can drive fairness in processes and establish trust with associates.
We need to design innovative total rewards strategies, as this is a key differentiator for the workforce. Tailor-made solutions for each associate will be a vital factor enabling an organization to be an employer of choice. "Rome was not built in a day; the same rule applies to revamp the total rewards winning strategy.
Report source- Deloitte Insights.