Total Rewards Optimization, “From Motivation 2 A Model 4 Emulation”
As the field of Personnel Management evolved beyond just the 3Rs (Recruit, Retain, Retire) in the last few decades to Human Resources Management with key verticals such as TA, PMS, TMS and especially C&B (Compensation & Benefits) made significant contributions to the organisations, in the last decade and time, has now come to re-visit their relevance for the Workplace 2020 and beyond.
“Compensation and Benefits Teams with the employee-centric approach introduced several innovative ways of rewarding individuals which were no doubt celebrated for a while. As most of these policies have become just hygiene factors, the C&B Teams are compelled now to revisit the policies and examine how far away they moved from the intended purpose.”
The market volatility, impact of global warming and macroeconomic indicators forced the organisations to become more and more “Agile and Innovative” than never before and consequently all the functions in most of the forward-looking organisations went through pruning. Organisations who could accelerate their Future Readiness naturally revisited their entire HR Gamut and more importantly optimising Total Rewards with a renewed belief, “You Only Get, What You Reward.”
Legacy Companies, therefore, had to move from rewarding loyalty to business outcomes and Fast-Growing Companies from mere expansions to Inclusive Growth.
This has necessitated a Mind-Set Change to re-establish the linkage between individual and team rewards to the overall performance of the organisation, ensuring not only Total Share Holder Returns but more importantly Total Stake Holder Returns.
Total Rewards optimization must, therefore, move away from a complex individual-centric approach to a simple Organisational Purpose-driven approach leading not only to Sustained Growth but overall Inclusive Growth, besides contributing significantly to the Country’s agenda for future.
The need of the hour, therefore, is to take the Total Rewards Optimisation exercise from Motivating to a Model for others to Emulate.
A three-pronged approach to Total Rewards optimisation can help organisations to ensure predictable outcomes and win the minds of Shareholders and the hearts of Stakeholders.
- Linking rewards to the contributions made to business outcomes.
- Linking rewards to the contributions made to Intellectual Capital.
- Linking rewards to the contributions made to Social Capital.
Organisations can decide the nitty-gritty of the above, based on where they are today and where they would like to be in 3 years from now, but with a clear 3 S approach as below:
- Step up: Establish a baseline, “As Is” based on data and gear up for the next level.
- Shape: Be willing to Shape the Culture of the organisation with newer insights without any confirmation bias.
- Surpass: Surpass the competition in the chosen area for a competitive edge.
The above 3 S model, if becomes a way of organisational life, then the organisation is always future-ready for rewarding not only the right but righteous too.
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