Tailor-made solutions for each associate will be a vital factor enabling an organization to be an employer of choice.
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:
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.
Author: Saud Zafar
Saud Zafar is the Global HR Director at Fulcrum Digital Inc.