Each month we post highlights from the speakers at NJ Compensation Association monthly meetings. Here’s our take from the March 7, 2017 meeting:
Topic: 2016 Global Talent Management & Rewards and Global Workforce Studies Speakers: Brian Bechan, Senior Rewards Consultant and Darren Tse, Consulting Director, Willis Towers Watson.
What percentage of children entering schools today will end up in jobs that do not exist yet – If you guessed 65% you would be correct.
Challenges attracting and retaining key employees remains high, especially in emerging markets. Getting it right starts with understanding the top drivers of attraction. You also need to understand why employees would choose to leave an organization. Base Pay is the number 1 driver of attraction and retention, followed by career management.
Employees with alternative and flexible work arrangements are more engaged and less likely to be retention risks.
In reality the employment relationship is changing, which is resulting in fundamental shifts in how companies are organized. The use of non-employee talent is increasing and having an impact on businesses (i.e. contingent workers, contractors, non-employee talent due to technology (robots), outsourcing, alliances, volunteers, artificial intelligence). While jobs filled by employees will continue to be the dominant means for getting work done, companies are experiencing challenges in two key areas:
– “Premier” – Highly skilled work with challenges attracting and retaining talent and market supply (I.e. software development talent). By deconstructing jobs, companies can change the talent curve creating supply for select activities and tasks.
– “Democratized” – Technology is fragmenting traditional skilled work into tasks that can increasingly be performed by less skilled people –I.e. manufacturing assembly, accounting. There are significant cost opportunities to be realized by thinking beyond employment.
The new Total Rewards Reality suggests:
– Transparency is a Core Principle
– Career security is the new job security
– Modernizing pay for performance starts with re-defining performance
– Base pay needs an identity check; its purpose may be lost
– Recognize that the “total” in Total Rewards includes flexibility and a move away from “one size fits all”
-Modernizing Total Rewards means moving away from conventional thinking
The takeaway – What HR Leaders should be doing now to address future needs:
– Understand how technology is impacting your business – Are new or different skills needed to guide the future? Do you understand your future workforce? Will your organizational culture change in the future?
– Take advantage of digitalization for how work gets done at your company – Can you accommodate a range of work options (i.e. AI, Robotics, Contingent Labor)? How will you align the right rewards the your workers? How can work be deconstructed?
– Provide Opportunities for Learning and Development – Ensure that your workers will be ready to meet your future needs.
– Consider using new technology to shape your employment and worker value proposition – Leverage technology and data insights to shape a value proposition for all employees.