This weeks’ article of the Deloitte Human Capital Trends series will focus on the third trend: "The new rewards".
For decades, designing rewards programs was a relatively straightforward exercise of finding the right mix of compensation and traditional benefits such as health insurance and vacation time. Those days are over. Leading organizations now understand that a personalized, agile, holistic rewards system is essential to attracting, motivating, and developing talent. So why are so many companies falling short, even as they realize their rewards programs are outdated?
Deloitte interviews and survey data indicates that few companies are making this transition successfully. Yes, they understand the need; 76 percent have reinvented performance management to be more continuous. However, 91 percent of companies still follow the utterly conventional practice of conducting salary reviews only once a year—or even less often. Even worse, only 21 percent of organizations would recommend their rewards program to others.
Most businesses now recognize the need to reshape rewards with a more tailor-made, agile, and comprehensive approach, matching other talent management strategies. The few organizations that have translated recognition into action have expanded their definition of rewards and looked beyond traditional approaches to design and delivery. The field remains wide open for organizations to experiment and test new tools in the effort to boost rewards’ efficacy by establishing abespoke relationship with each worker.
Look for our next article “From careers to experiences - New pathways”, a trend to understand how careers are now viewed as a series of developmental experiences, each offering the opportunity to acquire new skills, perspectives, and judgment.
Should you wish to have more information on the New rewards, do not hesitate to contact Karine Pontet, Director Operations Excellence and Human Capital Advisory (email@example.com).
Press release by Deloitte Luxembourg
Publié le 14 mai 2018