Companies will emerge from the general quarantine in 3 basic scenarios:
1. "All is well, keep working"
2. "Great hit on all financial plans, need to tighten up and recover"
3. "Things are bad, preparing for liquidation." Under a scenario 1: costs simply will not increase (some point revisions are possible in the direction of key employees), look carefully at the effectiveness of existing systems, who have not had, for example, grading think about its implementation, who have had - the revision of the system, to make the most efficient use of current costs on staff.
At the same time, some bonus payments may be postponed until a later period, or they may not be paid in proportion to the unfulfilled financial results.
Scenario 2 would require major changes: reducing benefits, tying all bonuses to the overall result and/or implementing programs to share the overall success, when the owners would be willing to share part of the effect for exploits or optimization, for some employees may refuse to pay bonuses at all in the current year. Also, to retain employees and focus their efforts on results with a horizon of more than 1 year (some businesses objectively will not recover any faster) in this scenario may increase participation in long-term bonus programs. I suppose scenario 3 requires no comment;
What western motivation trends can be highlighted this year? What are the priorities of your colleagues from international companies?
Now both Russia and the whole world are facing the same situation, so it is difficult to find any very different practices. However, there are two trends: (a) cancellation or postponement of bonuses paid to top managers of companies; (b) understanding that the phase of uncertainty and recession is always followed by the phase of stabilization and growth, which means that key employees with their competencies will always be in demand. Therefore, quite a few Western companies continue to work with HiPo in the "normal mode". In other respects, with adjustments for legislation, practices are similar;
Your top 5 books on C & B (Total rewards) for a specialist who wants to dive into this topic?
Milkovich George T., Newman Jerry M. Compensation System and Methods of Personnel Incentives. Translated from English by Belous I. L. M.: Vershina, 2005. - 760 с. - Dorothy Berger, Lance Berger. Encyclopedia of motivation and remuneration systems. "Alpina Business Books (United Press)." - Sales Management - David Cicelli - Sales Personnel Compensation. A Practical Guide to Developing Effective Compensation Programs, 2004) d) Lance A. Berger's The Compensation Handbook, Sixth Edition: A State-Of-The-Art Guide to Compensation Strategy and Design - Strategic Compensation: A Human Resource Management approach - Joseph J. Martocchio
What websites, blogs, and sources of information on C&B can you recommend?
CIPD, SHRM, and of course WorldatWork.
Right now the C&B profession is one of the most sought after and highest paid in hr - what do you think this has to do with?
Good question, I'm just now writing about it in my book. From my perspective, C&B is a profession that sits at the intersection of organizational design, talent management processes, company culture and of course all compensation policies. In HR, this is the broadest and deepest area of expertise, and therefore the highest paid. Looking even deeper, the cost of a C&B expert is the shareholders' fee for the confidence that they do not invest in people more than the business requires and for the fact that in an area where everyone considers himself a specialist, clear, transparent and effective rules of the game have been developed and implemented.
Before the events of the crisis, one of the main motivation trends were long-term incentive programs (LTI). What do you think will happen to LTI after all companies and employees leave? Will this trend stay with us or will they bet on all kinds of optimization and reduction of payments?
For those in scenario 1 - LTI will remain the most relevant, in scenario 2, I believe only some of the companies will keep this focus. For the rest, the relevance will be to rebuild or to reinvest and start a new business;
How did you start in C&B, why did you choose this particular field?
Many people in life have situations that you can say: "It's a matter of chance". My way to C&B was a matter of chance. I came to an interview at FESCO Group in 2006 for the position of HR generalist at one of its subsidiaries, and during the interview my future boss Irina Pronina simply asked: "Yuri, do you want to work in C&B? I said: "Yes, let's". That's how it all started;
What are your immediate plans and what projects are you working on?
Two weeks ago I handed in a project to analyze the effectiveness of the grading system at one of the coolest banks I've ever worked with. This week I am giving the project on HR function efficiency analysis. On the horizon are projects on grading and strategy of reward, "pumping" of one of the HR teams on the subject of HR strategy development, working through the idea of creating an IT product for modeling the salary structures and of course I continue to write the book on grading. But I am sure that when the coronovirus will let everyone go, something else will come along for sure.