TOTAL REWARD
How to reward key talent
The 21st Century has brought organisations squarely into a world where a core group of employees can make or break the business, forcing companies to recognise that the reward strategies that once brought them success may no longer deliver high performance. That is the main conclusion to emerge from two studies published in a recent issue of the US reward journal Workspan.
According to the Workspan studies, the truth is that some employees are simply more valuable than others. Key talent can be found in any part of the business - research and development, sales, technology, manufacturing, customer service. What's more, high performers aren't always a company's key talent. In fact, employees who help you execute your business strategy are the real key talent.
A key theme running through these reports is that employers are finally waking up to the colossal financial costs of their most able employees deserting the company. For better or worse, we are told, it is this key talent - their intellects, creativity, skills, commitment and leadership - which shapes companies in an ever-changing business environment.
So, a central strategic issue for organisations is how to recruit, retain and reward employee's knowledge-based skills, their intellectual capital and then gain their commitment to organisational success.
"The Royal treatment: How to engage key talent"
The central thesis of the first study by Noeline Thomson-Bee, vice-president of Aon Management Consulting, and Phyllis Ruez, vice-president of Aon Workforce Strategies, is that the closer a company gets to identifying and meeting the needs of its most valued employees, the more successful it will be in attracting and retaining them.
Motivating key talent
Once the organisation has defined its key talent, the next vital step is to determine whether their needs are being satisfied. So, what really motivates the most valued employees? Thomson-Bee and Ruez reckon that gaining a competitive edge involves selecting and arranging the right mix of total rewards:
"Best practices in engaging talent"
Employees have become more "sophisticated consumers" of employment opportunities, according to the authors of the second report, Sheila Sever, director of compensation at Synovus, a financial services company, and Towers Perrin's Heather King Foster.
They no longer have a strong sense of loyalty to their organisations. As Sever and King Foster explain: "They are ready and prepared to move when the time is right for them. This new reality poses a threat to employers that need an engaged and dedicated workforce to produce the business results."
Redefining retention and reward practices
According to Towers Perrin research cited in the study, "best-in-class" employers are redefining their retention and reward practices to keep good employees from jumping ship. "A rich benefits programme may initially attract talent," say Sever and King Foster. "However, recognition programmes, advancement opportunities for key talent, senior leadership effectiveness, a culture of teamwork and innovation, and a clear line of sight between what employees do every day and how the business performs are more important in the engagement equation.
| Key findings of Towers Perrin research - focusing on key talent |
| Research by Towers Perrin found that "best-in-class" organisations adhere to similar "best practices" - whatever the industry or geographic location. They: |
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Want to know more?
Title: Workspan, July 2002.
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