A Look at How We Reward the Work of Today...and Tomorrow
Upcoming SlideShare
Loading in...5
×
 

A Look at How We Reward the Work of Today...and Tomorrow

on

  • 2,248 views

Presentation from the TLNT Transform 2012 conference in Austin, presented by Ann Bares.

Presentation from the TLNT Transform 2012 conference in Austin, presented by Ann Bares.

Statistics

Views

Total Views
2,248
Views on SlideShare
617
Embed Views
1,631

Actions

Likes
1
Downloads
15
Comments
0

9 Embeds 1,631

http://compforce.typepad.com 1002
http://www.compensationforce.com 554
http://transform.tlnt.com 36
http://www.compforce.typepad.com 28
http://feeds.feedburner.com 4
http://dev.transform.tlnt.com 3
http://www.typepad.com 2
http://translate.googleusercontent.com 1
http://compensationforce.wordpress.com 1
More...

Accessibility

Categories

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    A Look at How We Reward the Work of Today...and Tomorrow A Look at How We Reward the Work of Today...and Tomorrow Presentation Transcript

    • A  Look  at  How  We  Reward  the  Work  of  Today  –  and  Tomorrow!   February  27,  2012  
    • Things  We’ll  Cover  •  Six  developments  affecKng  work  and  how  we   reward  it.  •  What  each  of  these  mean  for  how  reward   programs  are  designed,  managed  and   communicated.  •  Pulling  it  together  –  how  rewards  can   transform  the  business.  
    • Development  1:      Work  is  Social  and  Connected  
    • A  Brief  History  of  Social   Connectedness  in  Rewards   Scanlon  Plans     Peer  to  Peer   Gainsharing   Recogni:on  1930   1940   1950   1960   1970   1980   1990   2000   2010   360  Degree   Viral  and  Social   Feedback   Rewards  
    • Viral  and  Social  Rewards  Viral  Pay  System  •  Profit  based  basket  of                               “Tokens  of  AppreciaKon”  •  Three  rules:   –  All  tokens  must  be  given  away   –  You  can’t  give  tokens  to  yourself   –  The  President  is  not  eligible  
    • Viral  and  Social  Rewards  Bo@om  Up,  Employee  Directed  Performance  Management  •  “Colleague  Leer  of  Understanding”  •  Key  elements  of  the  CLOU   –  Personal  commercial  mission   –  AcKviKes   –  Steppingstones   –  Time  commitment   –  CLOU  colleagues  
    • Why  “Social  and  Connected”  Rewards?  •  Builds  culture  of  employee  parKcipaKon  and   ownership.  •  A  boom-­‐up,  rather  than  top-­‐down,   management  system  taps  into  employee   perspecKves  and  knowledge.  •  AcKve  rather  than  passive  role  for  employees.  •  Transparency  helps  build  trust  and  belief  
    • Development  2:  Work  That  Maers  
    • Work  That  Maers:  Task  Significance  •  Research  studies  by  Wharton   Professor  Adam  Grant   demonstrate  importance  of   “task  significance”  in  driving   producKvity  and  performance  •  Task  significance  =   understanding  the  posiKve   impact  of  your  work  
    • Work  That  Maers:     The  Power  of  PersonalizaKon  Too  ofen  employees  feel  emoKonally  disconnected  from  the  work  they  do;  their  work  may  capture  their  talents  and  Kme,  but  not  their  heart  and  soul.  Great  leaders  personalize  work  condiKons  so  that  employees  know  how  their  work  contributes  to  outcomes  that  maer  to  them.  David  Ulrich,  Wendy  Ulrich  
    • Work  That  Maers:           Passion  and  Job  Design    •  Passion:  A  Guiding  Principle  •  BoosKng  morale  and   producKvity  by  aligning   employees  with  work  they  are   most  passionate  about  •  Ask  frequently  “what  is  your   passion?”,  and  alter  job   descripKon  based  on  reply  
    • Why  “Work  That  Maers”?  •  Work  that  maers,  that  taps  into  an   employee’s  passions  and  draws  upon  their   parKcular  strength  and  talent  is  a  reward  that   benefits  the  employee  and  the  organizaKon.  •  What  role  should  HR  play?    
    • Development  3:  Salaries  as  Long  Term  Investment   CreaKve  Commons   Photo  by  Wonderlane  
    • Salary  Increases  Are  Your  Most   Expensive  Reward   $1   $5  Base  Pay  Increase   =   Lump  Sum  Bonus   *Over  a  ten  year  earning  period.  
    • Salaries  as  Long  Term  Investment   Core  Reward  Principle:  Tie  the  term  of  the  reward  to  the  term  of  the   accomplishment.     Base  salary  increases  are  a  long  term  award  that           must  be  Ked  to  the  individual’s  ability  to  contribute         on  an  ongoing  basis,  not  just  this    year  but  over                     the  longer  term    
    • Why  Salaries  as  Long  Term   Investment?   Not  Just  Compe::veness   But  Crea:ng  Compe::ve   Advantage  
    • Development  4:  The  Adaptability  ImperaKve   CreaKve  Commons  photo   “Rainbow”  by  EVoo73  
    • The  Case  Against  Variable  Pay   Of  course,  it  is  possible  to  get   people  to  do  something.  That  is   what  rewards,  punishments,  and   other  instruments  of  control  are   all  about.   Alfie  Kohn   Our  business  operaKng  systems…  how   we  moKvate  people  …  is  built  enKrely   around  these  extrinsic  moKvators,   around  carrots  and  sKcks.   Dan  Pink  
    • The  Case  Against  Variable  Pay:   Where  They  Are  Right  IncenKves  do  focus  people  IncenKves  have  the  potenKal  to  pit  people  against  one  another  IncenKves  can  undermine  creaKvity  by  aiming  aenKon  at  narrowly  defined  tasks  and  goals  IncenKves  ofen  produce  unintended  consequences.  
    • The  Case  Against  Variable  Pay:   Where  They  Are  Wrong  •  IncenKves  –  well  conceived  –  are  not  just   codified  bribes  •  IncenKves  can  be  the  centerpiece  of  a   powerful,  posiKve  partnership  •  IncenKves  offer  a  means  of  creaKng  and   sharing  economic  success  
    • The  Agility  ImperaKve  and   The  Boom  Line  1.  (Well  conceived)  variable  pay  is  here  to   stay  2.  We  need  to  (seriously)  step  up  our   variable  pay  game  
    • What  Research  Says  About  Variable  Pay  CARS  (Consor:um  for  Alterna:ve  Reward  Strategies)  Research   $2.34   750  broad-­‐based   incen:ve  plans   covering   1.5  million  employees   Median  gain  for  every  dollar  spent   on  incenKve  awards  
    • Why  “Agile”  Rewards?  •  The  employment  relaKonship  is,  ulKmately,  an   economic  one  and  the  employee  has  a  stake   in  the  ongoing  viability  and  success  of  the   organizaKon.  •  Well-­‐conceived  and  executed,  fosters  a           “win-­‐win”.  
    • Development  5:  No  More  Mindless  Market  Mimicry   CreaKve  Commons   photo  “Four  Wise   Monkeys”  by  Ferdosi  
    • On  Mindless  Market  Mimicry   In  the  Age  of  DifferenKaKon  Can  we  benchmark  our  way  to  success?   Answer:    No,  We  Cannot!  
    • What  Research  Says  About     Mindless  Market  Mimicry   Lessons  Learned:  Lessons  from  the  Economic  Big  Bang:     “Surveys  may  show  what  is  compeKKve,  “Sameness  in  compensaKon  was  suddenly   but  seldom  report  on  how  pracKces  work  over.    Instead  of  worrying  about  what  the   and  add  value  to  the  business  other  guy  is  doing,  companies  began  to   proposiKon.”  worry  about  what  the  business  needs.   CompensaFon  and  HR  During  Crisis:    Real  Pay-­‐For-­‐Performance  Study   Which  SoluFons  Add  Value  (WorldatWork     Total  Rewards  Conference  PresentaFon   based  on  study  of  banks  hit  by  subprime   crisis.  
    • Development  6:  Designing  for  Business  Success   CreaKve  Commons  Photo   “Success  Ahead”  by   MarsMet54  
    • Designing  Business-­‐Based  Rewards  What  are  our  strategic  priori:es?  What  are  the  organizaKon’s  most  important  objecKves?  What  are  the  top  challenges  it  faces  in  trying  to  achieve  these  objecKves?  Who  are  our  compeKtors?    How  do  we  stack  up  against  them?    What  are  the  primary  things  driving  revenue?  What  factors  most  impact  our  profitability?  What  are  the  biggest  threats  to  our  growth  and  success?  What  are  the  biggest  opportuniKes  for  our    growth  and  success?  
    • Designing  Business-­‐Based  Rewards   Reward  Strategy  Matrix   Strategic  PrioriKes   Reward  Elements  
    • Sample  Reward  Strategy  Review  Reward  Elements   Strategic  Priori:es   Double  Number  of   Grow  Net  Income   Strengthen  “One   Clinics   Group”  Iden:ty  Base  salary   PosiKon  Technician   Salaries  at  75th  %ile  Annual  bonus   Redesign  annual  bonus  plan  to  focus  on  group-­‐ wide  net  income  Other  cash  rewards   Referral  bonuses  for   Reward  standardizaKon   Technician   project    milestones  Performance  Management  Recogni:on   Celebrate  new  clinic   Recognize  “One  Group”   openings   behaviors  Development   TuiKon  benefit  for   Technician  degree  Benefits  
    • Business-­‐Based  Rewards  Are   TransformaKve  How  rewards  work  to  transform  the  business:  1.  Focus:  Call  out  top  prioriKes  2.  Guide:  Guide  employees  to  areas  where  their  effort  can   create  the  most  value  3.  Create  consequences:  Create  consequences,  financial  &   non-­‐financial,  for  success  &  failure  4.  Weaken  silos:  Encourage  teamwork  &  collaboraKon  5.  Strengthen  culture:  Reinforce  culture  and  values    6.  Drive  development:  Direct,  drive  and  reward  the   development  of  skills  and  capabiliKes  7.  Impact  career  choices:  Highlight  career  choices  that  are   aligned  with  strategic  needs  
    • Presenter  Info  Ann  Bares  Managing  Partner  Altura  ConsulKng  Group  LLC  abares@alturaconsulKnggroup.com  Website:  www.alturaconsulKnggroup.com  Blogs:    www.compensaKonforce.com      www.compensaKoncafe.com