The August issue of WorldatWork's workspan magazine features an interview with Bruce Ellig, the WorldatWork Keystone Award recipient in 2004, more recently honored with the University of Wisconsin-Madison School of Business' Distinguished Business Alumni Award, whose total rewards career covers a span from the 1960's through today.
In the workspan interview, Ellig is asked about the common mistakes that new practitioners to the field of rewards make. His response, part of which I quote below, provides wisdom worth heeding for all HR and reward professionals (even those of use who've been here for a few years).
Too much focus on trends and hot topics. Not enough focus on customizing programs and processes to address real needs. People have programs looking for an application rather than analyzing the issue and then determining what's the best program or process. Too many start at the end and work toward the beginning. Logically they should start at the beginning.
Here, here! My experience would completely confirm the prevalence of this problem. When I speak publicly on the topic of rewards, and in meetings with prospective clients shopping for a consultant, the most frequent question I am asked is:
What are the hottest trends in compensation?
It is the wrong question, and it reveals a fundamental misunderstanding of how rewards work in an organization. It also reveals a desire to skip the basics (as Ellig states, analyzing the issue and determining the best program and process - to address it) and simply apply the coolest new solution without thought to its fit or relevance.
The result of this all-too-common mistake: a reward program that rightly deserves even Alfie Kohn's harshest criticism.
Ann,
I agree. Compensation is a field that is too easily enfatuated with the latest new idea, when they do not seem to be able to make existing programs work well.
For example, they and their constituents struggle over basic issues in performance management as if the concept was discovered yesterday--how many ratings to use in performance evaluations, the need for differentiating pay increases for high and average performers, and they need research to tell them that supervisors have the greatest difficulty in performance mnanagement with evaluating poor performers.
Frank
Posted by: FrankGiancola | August 04, 2007 at 07:26 AM
Frank:
It is unfortunate. Doing the basics well, with discipline and consistency would take most organizations quite far, yet people prefer to chase the latest magic bullet. My theory: Most are unwilling to do the difficult work that the basics require.
Posted by: Ann Bares | August 04, 2007 at 08:12 AM
Chasing after trends is not a problem unique to compensation. It's the American Way. It's apple pie. Despite all evidence to the contrary American managers still believe that somewhere out there is a magic stone out there. Rub it and workers get happy and profits go through the roof. Now, if I can just find that stone …
Posted by: Wally Bock | August 07, 2007 at 08:39 AM
Wally:
You are so, so right!
When will we ever learn?
Posted by: Ann Bares | August 07, 2007 at 08:52 AM