Linking the Compensation component with Talent Management is a major challenge in today’s business environment. Global economic conditions have taken a dive and according to a new WorldatWork survey predicts employee pay raises will more or less stay put in 2008, a departure from the nearly 4 percent average increase in 2007.
The immediate issue businesses need to contend with is achieving business results and targeted growth given the lack of sufficient budget. Amidst a budget crunch in employee compensation programs and an impending need to spend on salaries and incentives, one solution would be to look to creative talent management strategies.
With the economy taking a breather, management should start leveraging on other platforms to motivate and compensate staff. One such method is to explore the concept of Total Rewards, an all inclusive package which encompasses income, health benefits, development as well as work-life balance. This presents a holistic value-add to the meaning of compensation, be it specifically for talent or staff alike.
Human Resource managers could position Total Rewards as a comprehensive compensation package applicable for Talent Management by offering varying levels development and health benefits as well as different quantum of incentives at different corporate echelon. Total Rewards should be sculptured to encompass both monetary and non-monetary employee benefits. There is equal appeal for new entrants of the workforce or to the company. It serves as an attraction for those in search of balance in compensation, lifestyle as well as provides a sense of stability. However, having said that, these are the criteria which Talents also value at the workplace.
Compensation and performance must be aligned for parity. The leveraging platform here is learning and development which is a process which Learning ROI is evaluated with KPIs or key performance indicators to measure work achievements.
Communication is of utmost importance to the successful acceptance of any Human Resource or Talent Management strategy and tying in the expectations of business outlook going forward, in tandem with the Total Rewards package is critical. Understand that the best rewards system will fail if they are not communicated appropriately to employees.
Leverage on internal communication via actively organizing relevant activities, staff benefit tie-ups and benefit offerings thereby creating positive talking point amongst staff. Get Top management involved in the change activities as well.
For more on this topic, check out Talent Management – How To Measure Performance of Your Staff here.
