Category Archives: compensation

Total Rewards with a Twist of Customization

Two studies released Monday at the WorldatWork’s Total Reward 2010 Conference in Dallas, Texas shed light on what employers might want to do differently as they begin to staff up again.

During a session on the conference’s opening day, researchers from Texas A&M University shared the findings of a recent study of accounting students that found the influence of particular rewards and benefits frequently depended on the outcomes being sought (i.e. attraction, motivation or retention). The study, “The Relative Influence of Total Rewards Elements on Attraction, Motivation and Retention,” found that career development was especially important to students pursuing a career in accounting. Meanwhile, work/life benefits and performance recognition were much more important to those who ended up employed at one of the Big Four account firms for several months. (Response rates of the different groups studied over the several year period ranged from 159 to 232.)

Similarly, a study entitled “Beyond Compensation: How Employees Prioritize Total Rewards at Various Life Stages” found that respondents valued different rewards at different stages of their lives, with development significantly more important for employees under 40 and benefits much more important to breadwinners, especially female breadwinners. (The study of 678 adults was conducted by Next Generation Consulting and Dieringer Research Group.)

Most HR leaders aren’t going to be terribly surprised by the studies’ conclusions. Indeed, both seem to be in line with the findings of earlier research projects. But if there continues to be any doubting Thomases out there who still think they can get away with a one-size-fits-all approach to total rewards—and one suspects there are—then perhaps these findings will give them reason to pause and reconsider.

Rebecca Ryan, CEO of Next Generation Consulting, suggested to attendees that employers might be well served by stealing a lesson from Starbucks’ playbook and the way it was able to build its business by customizing coffee and latte drinks—as in “I’ll have a triple decaf Grande Latte with skim”—when it comes to designing their total-reward programs.

Meanwhile, Mercer Senior Partner Steve Gross is scheduled to share the findings of a third survey on Tuesday that found companies continue to invest in their total-reward programs during the economic downturn and modify the elements of “total rewards.”

The study revealed that 50 percent of the 741 responding multinational companies responding consider “work-life initiatives” a staple of total rewards, while four in 10 reported they either enhanced or added wellness programs during the past 12 months.

All three studies were sponsored by WorldatWork. The Total Rewards 2010 Conference runs through this Wednesday and is expected to attract around 1,500 attendees.

What Doesn’t Get Reported

It always impresses me how much we journalists are forced to leave in our reporter pads and memory cells when we cover events or conduct interviews.

Take this one session I wrote about from our recent Human Resource Executive Forum® in New York. The session — focusing on re-engaging workforces after the recession to carry them through the recovery and beyond, and moderated by Charlie Tharp — was well attended and well run (thanks in large part to Tharp on both accounts).

When American Express CHRO Kevin Cox started describing the day he got the call from a fellow senior executive about what the federal government actually had in mind in terms of new rules and oversights for bailout-funded financial institutions — including Amex — when it comes to executive compensation, you could have heard a pin drop. There were silently nodding heads all around me. Basically everyone seemed to be hanging on his every word.

I was spellbound, too, by Cox’s full transparency about that moment and the feelings he had. I used his quote about his company’s “near-death experience” but there was so much more he said, about the helplessness he felt when other senior leaders came to him asking if there was any way around this new chokehold from the nation’s capital. He talked about feeling completely powerless to do what he was supposed to do as the head of HR. He described where he was at the time the call came in — on vacation — and what it was like staying on his cell phone for the next few hours, getting patched in here and patched in there.

What really impressed me, too, were the expressions on the faces of fellow HR practitioners in the audience. You could see it, feel it in the air. They not only seemed to share the pain, many — I sensed — had already experienced something similar in waking up to the new reality, the new sheriff in town, the new less-than-supportive “take” on corporate America they could feel emanating from D.C. 

We’ll actually be looking at this new reality through the eyes of some of the nation’s most powerful employment attorneys in our June issue, so stay tuned for that. For now, take it from me, within this country’s HR circles, the impact of the “new deal” in Washington is palpable.  

Not in it for the Money

Executive recruiters say there’s a good reason HR professionals don’t get the outrageous bonuses given to some in the finance industry.

They just don’t care that much about the money, they say, according to an article on eFinancial Careers, a UK job board that is part of Dice.

Instead, says one recruiter, HR leaders are “driven by the relationship they have with the line manager and what’s going on in the business.”

I’m sure money would be nice, too!