One of the other areas of innovative reward strategies I address in the new Talent Management Handbook from the ATD is personalisation / customisation. Here are a few of my thoughts on this:
Whatever the approach to reward an organization wants to use, this will need to be tailored according to different groups within the workforce. One of the key needs in companies operating across geographies will be to tailor rewards based upon national cultures as well as different legislation (and managing global reward can therefore be just as or even more complex than managing global talent development.)
Organizations may also need to respond to sector based differences. This applies in particular to differences between the private and public sectors and between sales and everything else - sales performance management and incentivization will always be a special case requiring specific types of reward.
There may also be a need to take account of generational differences. There is considerable debate about the extent to which employees from generations Y and Z are less materialist ie less interested in pay and more interested in having a job which provides them with meaning and development opportunities. In my view the greatest shift that any differences have produced is to make employees from all generations feel able to ask for work which is meaningful for them.
In any case, age differences are likely to be more significant than generational ones as pay, as opposed other elements of total reward, is likely to more important to people early on in their careers. This is likely to counterbalance any increased desire for self actualization within newer generation employees, at least in the short-term.
People working in different roles and employment relationships, for example part-timers and homeworkers, will also have different needs.
In fact, at some point, organizations face so many different factors to take account of that the only way to respond to them effectively is to personalize every person’s reward - at the very least ensuring that this is based upon them as a person rather than just the job they are holding, but ideally by trying to take account of their individual engagement needs as well. One example of this is Deloitte’s approach to career customization which allows people to dial up or down the demands of their jobs along with their career expectations but also their rewards, depending upon their personal needs and the way these factors change during their careers.
And for more information:
- Consulting Research Speaking Training Writing
- Strategy - Talent - Engagement - Change and OD
- Contact me to create more value for your business
- jon [dot] ingham [at] strategic [dash] hcm [dot] com