Anti Corruption As Strategic Csr A Call To Action For Corporations
How Rewards Adapt to Changing Work
1. A
Look
at
How
We
Reward
the
Work
of
Today
–
and
Tomorrow!
February
27,
2012
2. 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.
4. 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
5. 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
6. 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
7. 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
9. 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
10. 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
11. 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
12. 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?
14. Salary
Increases
Are
Your
Most
Expensive
Reward
$1
$5
Base
Pay
Increase
=
Lump
Sum
Bonus
*Over
a
ten
year
earning
period.
15. 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
16. Why
Salaries
as
Long
Term
Investment?
Not
Just
Compe::veness
But
Crea:ng
Compe::ve
Advantage
17. Development
4:
The
Adaptability
ImperaKve
CreaKve
Commons
photo
“Rainbow”
by
EVoo73
18. 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
19. 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.
20. 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
21. 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
22. 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
23. 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”.
24. Development
5:
No
More
Mindless
Market
Mimicry
CreaKve
Commons
photo
“Four
Wise
Monkeys”
by
Ferdosi
25. On
Mindless
Market
Mimicry
In
the
Age
of
DifferenKaKon
Can
we
benchmark
our
way
to
success?
Answer:
No,
We
Cannot!
26. 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.
27. Development
6:
Designing
for
Business
Success
CreaKve
Commons
Photo
“Success
Ahead”
by
MarsMet54
28. 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?
30. 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
31. 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
32. Presenter
Info
Ann
Bares
Managing
Partner
Altura
ConsulKng
Group
LLC
abares@alturaconsulKnggroup.com
Website:
www.alturaconsulKnggroup.com
Blogs:
www.compensaKonforce.com
www.compensaKoncafe.com