What key trends in Total Rewards can you identify right now?
Because of the different impact of the pandemic on different industries, companies are adapting their Total Rewards in different ways to the current situation.
But if we talk about general trends, the following can be highlighted:
- Greater flexibility, adaptability, and changing goals as needed, hence KPIs
- Transition from annual goal-setting to semi-annual or quarterly
- A more balanced approach, using balanced scorecards and behavioral metrics
- Emphasis on the effectiveness of applied programs
Do you think continuous performance management will gain momentum? Or many companies have already had enough of it?
Let's start by defining the term performance management as a performance management system. Performance management system includes: setting and decomposition of company's goals, development and implementation of competence management system, as well as assessment of goals, KPI and competences and providing feedback to employees (performance review).
So far, not many companies have implemented performance management as a management system. Many just stopped at the development and use of the system of remuneration by KPI. So everything is still ahead of us.
But business in Russia is developing in its own way. If foreign companies are gradually moving from MBO to PM, then to BSC and finally to OKR in parallel with agile, then Russian companies are trying to go straight to OKR. Whether such a decision will make a company successful is a big question.
On the other hand, those Russian companies that wanted to implement performance management are already using this system; others are thinking and choosing. So there definitely won't be exponential growth.
Share your top five steps for an HR manager who has to implement a new C&B program for employees? What's the first thing to keep in mind?
First and foremost, developing a new C&B program requires the organization's strategy and goals, as well as the HR department's strategy and goals, and an analysis of the market and the company's internal environment.
As for the 5 top steps, there is no single algorithm, everything depends on the level of training of HR, on the presence of the strategy and strategic goals in the company, so they are subject to change, that is, you must be able to adapt these steps depending on the situation.
- Analysis of the market situation and diagnosis of problems in the company;
- Organization of a strategic session to develop the goals and strategy of the company with the participation of top managers and the CEO;
- Organization and conduct of the strategic session to develop the strategy and objectives of the HR Department;
- To draft a new C&B-program in accordance with the strategy and objectives of the company and the HR-Department (training of the working group of the project may be required);
- Presentation, discussion, feedback, adjustment, approval;
- Familiarization of employees with the new C&B-program, implementation.