Is Your Global Comp Plan Prepared For 2023?
Global Compensation is a significant foundation of Human Resources strategy that must take a myriad of considerations into account to effectively attract, retain, and correctly incent the right behaviors of a workforce for global companies to sustainably develop and grow. Over the past two years world events has made it imperative to analyze and review areas that need to be updated and introduce new opportunities for a global compensation program to remain aligned with a company’s strategic goals.
Critical Events Impacting Global Compensation Programs
Recent events such as the pandemic have made it necessary to address how companies look at paying their workers. The significant number of workers leaving their jobs for better pay or not returning at all, numerous variations of remote work, balancing the staffing mix between employees and contingent workers, the war with Russia and the Ukraine, inflation, continued talk of recession, have all impacted global compensation programs.
Strong Data Analysis Supports Global Consistency
To understand the nuances of your current program against the current worldwide marketplace, strong data analytics showing current state and moving into predictive analysis will help form a solid platform for your global compensation program. Companies require balance in global and local perspectives prior to implementing any changes. Having strong data is the safety guard. Think about different currency, languages, cultures – all making compensation procedures and processes complicated. Local labor laws and remuneration policies make it that much more challenging. Deep dive analytics that comprehensively take these factors into account will support the consistency needed to move forward. The goal is a more streamline process and system.
Global Compensation Opportunities
Focus on ‘Available Now’ Talent
Retaining key talent is key. A great way to use analytics is to look at the existing talent pool. What can be done to keep them engaged? Why look outside the company when the best people are currently ‘available now?’ Some key questions to keep them engaged:
Is the company providing the right forms of recognition?
Is the company optimizing its total rewards?
Focus on Upskilling and Reskilling
Companies have a better chance of retaining employees if upskilling and reskilling opportunities are transparently communicated and provided. Workers are interested in developing their talent and broadening their skills. This can result with workers’ ability to take on new responsibilities and/or move into other jobs, even management roles.
Other Forms of Compensation
Look more broadly into other forms of compensation for the employee base. Many times, employees and recruits are looking for additional forms of benefits which can go a long way. Other than standard health care benefits, other forms of compensation can include:
Extra Paid Time Off
Remote Work or Hybrid Opportunities
Ask employees or potential recruits what they think is important to them. Analytics can help define how to build other forms of compensation based on the answers received.
The Future of Work
As in all facets of business today, effective leadership is at an all time premium. Leading a Global Compensation Program must be done with a steady, flexible, attentive, and globally comprehensive hand. Data analytics is a critical influence to help guide the right answers to the myriad of questions being asked of global compensation programs today. Companies must correctly incent the right behaviors at the right time to keep an active and thriving workforce to sustainably help the company develop and grow.
MSI’s Consulting/Advisory Team supports the design and development of global compensation and data analytic strategies that align to your company values and business goals. Our focus is helping organizations optimize and develop long range strategies for success.