How valuable is benchmarking when it is used for HR strategies and programs? What form should it take? What processes are most likely to make it useful? Benchmarking is generally defined as a process used by organizations to evaluate various aspects of their processes in relation to best/common practice. It can assist organizations in thinking … Continue reading So What Is Benchmarking Specifically?
Surveys Are the “Rosetta Stones” of Market Pricing in Compensation Management
Determining the relationship of an organization’s pay structures and pay rates to those prevailing in the relevant labor markets is a critical part of its compensation management system. Getting it wrong can result in unnecessarily high compensation costs or non-competitive rates that can result in dissatisfaction and turnover. But getting it right is challenging. Compensation … Continue reading Surveys Are the “Rosetta Stones” of Market Pricing in Compensation Management
Innovation vs. Emulation – Treating HR as a “Decision Science”
Rewards practitioners must make decisions as to the types of strategies they formulate and the programs they design to support strategy. A critical issue is whether to maintain internal consistency. Another is whether to emulate what other organizations do or to innovate. Both the internal consistency versus customization and the external emulation versus innovation decisions … Continue reading Innovation vs. Emulation – Treating HR as a “Decision Science”
Analytics In Rewards Management
This is the era of “big data” and “analytics” if you listen to the pop literature. And to some extent it is… or should be. Management increasingly demands evidence to support recommendations, rather than “that’s what others do” or “it is prevailing practice.” And management is also realizing that mimicking the strategies others use to … Continue reading Analytics In Rewards Management
Communicating Reward Strategies
Communication is key to promoting an understanding of the strategy and the reasons why it is what it is. Communication also can inspire employees to focus on organizational objectives and to contribute to its performance. Effective communication is one of the best tools rewards practitioners have. Informing, influencing and inspiring employees is best done by … Continue reading Communicating Reward Strategies
Can HR Functions Do Better By Doing Things Differently?
HR functions must find an optimal way to get things done. If the work can be eliminated, done better, or done by others, HR executives should evaluate the options and make the changes that will maximize effectiveness and efficiency What, If Anything, Needs To Change? If an HR function finds itself overloaded and/or not competent to … Continue reading Can HR Functions Do Better By Doing Things Differently?
5 Business Reasons To Consider Including Variable Pay In The Total Direct Compensation Strategy
Economics: The conversion of what have been fixed costs to variable costs is an advantage of some significance. Variable pay awards do not compound the way base pay adjustments do, thereby lowering the escalation of rates over time. Assuming variable pay is tied to performance, it both allocates awards more optimally and is contingent on … Continue reading 5 Business Reasons To Consider Including Variable Pay In The Total Direct Compensation Strategy
Performance & Rewards Strategies for International Assignees
“If multinational firms are to prosper now and into the future, they must develop people who can successfully function in a global context – formulating and implementing strategies, inventing and utilizing technologies, and creating and coordinating information. International assignments are the single most powerful means for developing future global leaders.” – Globalizing People Through International … Continue reading Performance & Rewards Strategies for International Assignees
Developing A Sales Compensation Strategy
The first step in creating an effective sales compensation system is to develop a strategy that is derived from the objectives of the organization and its business strategy and that is a good fit to the context within which the organization operates. The importance of sales will depend on that context. A monopoly with no … Continue reading Developing A Sales Compensation Strategy
Adopting An Appropriate Competitive Posture
Once the market of choice is defined and the prevailing levels determined an organization must decide how it pays relative to that market. Most organizations will define multiple markets, each selected for a specific skill set, occupation or category of employee. And the competitive posture may be different for different types of employees. It is … Continue reading Adopting An Appropriate Competitive Posture
Robert J. Greene | Reward $ystems, Inc. 