in executive remuneration packages.
C OVER
STORY
So, what should organizations be rewarding in the future? What should we value?
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A number of factors are affecting what society considers valuable—COVID-19, the evidence appearing to substantiate the existence of global warming, and global social pressure for organizations of all types to address discrimination of all types. Most notably, during the course of only a few months, we have all come to realize the value of front-line workers—those who keep us safe, protect us and our property, teach our children, provide our food, and treat us when we are sick. Most of those were, and still are, on low pay with little opportunity for personal reward for excellence. Suddenly, society now values far less many formerly prized roles such as politicians, corporate executives, investors, sports stars, so-called celebrities. Society now values those who make the world a better place for all of us, not those who pursue only their personal benefits and aggrandizement. So too, organizations world-wide have been forced by COVID-19 to acknowledge that looking after the welfare of their staff is critically important; that their staff are human before they are resources. | AUGUST 2020
Organizations are now realizing what data has shown for decades: 1. The significant differentiator of sustainably successful organizations is the caliber of their management and leadership. High caliber peoplemanagers have not waited for HR to sort out what to do during the crisis. They have managed the crisis, led the way, and looked after their staff. 2. Poorly designed financial reward systems create more harm than good. The challenge for every organization is, “Will you recognize those and act accordingly?” If not, you are probably paying the price now, and will do so even more in the future.
for excellence at something else. This has been a critical failing for decades. Organizations must: • Attract, select, and onboard into peoplemanagement roles only those who have the desire and potential to excel as people managers and leaders, not those who have excelled at something else; • Continuously monitor and develop people-managers’ performance and skills; • Reward non people managers who excel (but do not have both the desire and potential to excel as people managers) in ways other than giving them people-management responsibility. Human resources are not a generic reward currency!
Management Excellence
Rewarding Individual Performance
Organizations must cease using people-management responsibility as a reward
Organizations must now rethink their reward strategies in terms of core pay