Beyond the Compensation Cookbook: The Education of a Reward Pro

My friend Jim Brennan wrote and recently shared (in the WorldatWork Community, registration required) a post titled Desperately Seeking the Compensation Cookbook, lamenting what he sees as the growing tendency in our profession to search for easy answers and stock solutions.  As one of a group of veterans who dedicate time and energy to the Community, sharing knowledge and answering questions, Jim knows of what he speaks and I think the concerns he highlights (in his usual colorful way) are worthy of our reflection.

His post begins:

More and more professionals searching for the master source of all compensation best practices stand to be disappointed, because it does not exist; but they do have some limited options. 

To the dismay of the lemmings who try to find the end of the line so they can copy the collective wisdom of those who went before them, there is no one comprehensive or authoritative encyclopedia of compensation tradecraft wisdom with universal application in all industries and for all circumstances.

The problem, or at least one of them, is these circumstances leave many in our profession ill-prepared and at risk during a time when there is lots of pressure for action and change. As Jim states:

Lacking much more than superficial basic training (and even that being extremely narrow and very limited), they frantically search for authoritative guidance on important policy and practice issues.  That makes them very vulnerable to mistakes, scams and undue reliance on fast-talking used-car salesmen now peddling pay solutions.

Accepting the fact that our search for the Holy Grail of compensation wisdom is likely to end unsuccessfully, how do we master our tradecraft and strengthen our expertise?  Jim's post includes his own initial list of suggestions, featuring free and on-line options.  Inspired by Jim's rant, I'm going to add my own thoughts on a three-pronged development plan for all of us in the reward profession.

And so...

The Education of a Reward Professional

Number 1:  Knowledge and tools of the profession. 

The foundation of your education should, of course, be the knowledge, skills and principles of your profession.  The elements of a total compensation program.  The steps and considerations for designing base salary structures, short- and long-term incentive plans, etc.  As our global professional association, WorldatWork offers the most comprehensive set of resources for this, ranging from a dynamic Community (free) to a basic series of "how to" books (low cost) to certification coursework (more expensive).  There are certainly other resources out there as well.

Number 2:  Broad understanding of organizational, economic, psycho-social and financial considerations. 

Mastering the steps for designing or reviewing a reward plan are not enough: you must also possess a broad understanding of the context and conditions in which they operate (and within which they will ultimately succeed or fail).  This means stretching beyond the boundaries of our professional discipline and learning about others. 

If you are a book reader, pick up some of the interesting non-fiction reads out there.  A few I've enjoyed recently that stretched my thinking include Switch , Moneyball and The Black Swan.  (And a tip: pay attention to what Ryan Johnson is reading!)  Not a book reader? Subscribe to some blogs outside the realm of rewards (like Seth Godin's, Tom Peters' or Malcolm Gladwell's). Won't/can't find the time to read? I'll skip the lecture (but you know it, don't you?) and suggest that you go out of your way to meet and get to know some professionals beyond your immediate sphere. Find out how the world looks through their eyes.

Number 3:  Commitment to the process of inquiry. 

Be curious.  Ask questions.  Seek to understand.  Probe and push back.  Successful reward development hinges on deeply understanding the situation and acting accordingly.  We are advisers and subject matter experts, not order takers.  Insist on the steps and process that allow your advice to be your best.

That's it: my riff off Jim's rant and some thoughts on growing up to be a reward pro.  What do you think?

Comments

[Darcy Dees]

It amazes me how many people (who should know better) are always searching for that elusive "silver bullet." If there was one right answer, we'd have figured it out a long time ago and everyone would be doing it. The "right" program depends on many individualized factors and must be determined by every company.

[E. James (Jim) Brennan]

That's why it's so scary, because so many folks either don't know about or don't seem to care about the process by which you properly isolate and select your optimal (and usually unique) solution for your situation. Instead, they simply demand the secret answer that will get them off the spot when challenged by their top management.

[renaissance costume]

Very well said Darcy.. I agree..

Thanks for the interesting post. Keep up the good work!

[Ann Bares]

Darcy and Jim:

It's true - no wonder the market always seems to be ripe for the next slick answer peddler. The silver bullet may be the easy way out, but it certainly isn't the most interesting or satisfying! Stretching ourselves and our capabilities in "the process" is how we develop our own talents and how we deliver the best value to the organizations we serve.

RC:

Thanks for the comment - and for reading!

[Mario Karges]

Ann,

In my opinion, One of the greatest challenges facing today's compensation professional is in locating objective and authoritative information about the field. They too frequently encounter well known consultants who use their talents, not to clarify complex situations objectively and to suggest a number of solutions, but to cleverly distort them to support the use of their current pet idea which they just happen to have based their consultancy on. Competency based pay is a good example.

Other times, young professionals encounter groups of "experts" one of whose primary purposes seems to be to cross sell and blindly support each other's services, blogs, careers, and employers products, under the guise of furthering the development of the profession.

May I leave you with this thought: Are we part of the problem or part of the solution? Let's not be too quick to blame others for the "poor slob who just doesn't get it," when we may be partially to blame.

Respectfully,

Mario