Does Your Compensation Plan Reflect Your Culture?

Sonya Clark

The failure to link compensation to culture is one reason so many companies are struggling with a crisis of employee disengagement.

It is no surprise that in this tight talent market the number of organizations who consider retention a major concern has increased.

In a recent Compensation Best Practice’s Report revealed that while 44% of companies think their employees are fairly paid, only 20% of employees said they feel that way… a staggering disconnect! It also found that 59% percent of organizations fear losing their hard-won talent.

Employee recognition and engagement is fast becoming more than a 2018 HR predicted challenge. It is a reality!

In our company, the Global Job Architecture (GJA) provides managers and employees with a clear roadmap for career progression and how compensation is linked to it, along with a compensation navigator that underpins our culture of transparency and trust.

Key ingredients for an effective strategy

  1.  Get the hygiene factors sorted: Establish a solid foundation and job architecture to underpin and support your reward strategy. For example, SAP’s GJA provides role clarity and a clear roadmap for career advancement and progression that is aligned and links to our core reward levers (base salary, bonus, equity).
  1. Provide a compelling benefits and wellbeing program: Our company has established unique benefits and an end-to-end wellness program that incorporates the three financial, physical, and emotional pillars to help our employees Run Healthy.
  1. Establish an integrated platform to drive digitalization of rewards programs: Create one platform to make it easy for your employees to easily consume their total rewards programs and to make it simple to navigate the roadmap.
  1. Provide impactful communications: Establish communications that resonate with your workforce – sell your offerings and proposition in a targeted way to meet the needs of all generations
  1. Go with transparency to build trust!
  1. Encourage your leaders to reward sponsors/champions: Educate and upskill them so they have the confidence to explain your reward strategy and have open and honest discussions with their employees about their rewards/employee value proposition.

Learn why HR should think like a marketer in What If We Managed Employee Experiences Like Products?


Sonya Clark

About Sonya Clark

Sonya Clark is a HR Specialist with SAP SuccessFactors. For close to 15 years, she has partnered with HR and Business leaders to align their people strategies to their business strategies, delivering people initiatives that increase employee engagement and productivity. Using a combination of both best practise, and leading edge technologies offering her clients a design approach to intelligent HR management to ensure a return on investment. Based in Brisbane, she is regularly hosting HR thought leadership events, whilst partnering with HR experts to deliver strategic solution advice.