My last post focused on the need for best fit in performance management.
The need for best fit in reward was also made clear at the CIPD's reward conference recently (echoing a themes from an earlier conference that one size does not fit all). The WorldatWork's blog referenced Duncan Brown's compelling arguments for 'best fit' instead of 'best practice':
"Actually, I heard the notion of 'best fit for the organization' versus 'best practice' more than a few times at the conference, and it's a notion that has stuck with me. Intuitively, it's right on because it just makes simple sense that what might be 'best practice' in one industry or company might be a sub-optimal practice in another industry."
Compensation Force notes this concept is "simply brilliant":
"Because effective rewards are relative and situational; what works 'best' in one organization can be a disaster when force fit to another."
And XpertHR summarises this focus on best fit by emphasising that "reward offerings must be driven by organisational needs and capabilities, rather than by a compulsion to follow trends."
So it's a bit of a worry that the CIPD's 2008 Rewards Survey finds that adopting a formal reward strategy has fallen from top reward priority in 2007 to sixth place this year, leading to a “semi-detached” approach to reward in which there is a “disjoint between what organisations espouse about reward, and what their reward offerings actually achieve".
"Reward specialists therefore need to work on a cohesive and compelling, [best fit] 'vision and mission' for reward in 2008, if reward objectives are to be achieved."