Getting Pay Right
Pay is an emotive subject which can motivate and, perhaps more dangerously, demotivate. It is frequently about relativities rather than absolutes, both internally and externally. Comparisons are made about the amount paid and a perception of fairness formed based on cultural beliefs of the value of the contribution made by the job and individual.
1. Work design: are jobs/roles coherent building blocks in the grander scheme of things. Is it clear what the role is there to do?
2. Total remuneration structure: Is the basic architecture of the tangible rewards appropriate to the circumstance? Is the content and balance between them mutually supportive?
3. Market position: Is the competitive pay position sustainable, cost effective and justifiable?
4. Recognition: Is actual pay consistently related to the role and the achievements of the individual doing the role? Are pay decisions thought to be fairly obtained?
Making Work Viable
It may be that the work situation is just too difficult to be sustainable for the individual either from a practical viewpoint or at-work frustrations. Work-life balance issues are addressed within this area. What will make the difference between creating and surfeiting an appetite for the work? How can you prevent a person feeling that they are "fighting" the job rather than "driving" it?
1. Logistics: Is the physical location of the workplace a barrier? Is transport, time of work and security an issue?
2. Physical environment: Is the working environment conducive to good work and have the best attempts been made to reasonably improve them? Office layout, climate, mental and physical job aspects all impact.
3. Equipment and Business systems: Working with the best and latest or simply equipment that works can create an enthusiastic attitude. Alternatively, immense frustrations may be generated by unsatisfactory kit or administrative processes and resources that appear to hinder getting on with the job. Are the "tools" for the job a positive or negative aspect to the job?
4. Flexible work arrangements: Allowing individuals to fit work into a personal preference or to be compatible with other valued commitments may be crucial decider between a job taken and a job turned down. How possible is it to tailor working time to individual preferences; part-time, hours, place of work, facilities from home?
Building Capability
Providing opportunities for development may be both an important need for the organisation and a real motivator. Competent and confident people are more likely to achieve. At the core is the need for sensitive and relevant assessment of needs and delivery of opportunities to develop.
1. Job Skills: How are the key practical skills to actually do the job given? Are they assumed, taught ad-hoc or methodically taught so that people are not embarrassed by shortfalls due to inadequate training?
2. Knowledge: Is there provision to educate in the job's professional subject area to keep the individual up-to-date and employable? Or is the role a "backwater" with an ever diminishing value of current expertise?
3. People Skills: How are interpersonal skills regarded and improved? Are manager/subordinate relationships important to promote a positive climate?
4. Managing performance: Are formal performance assessment systems relevant to the building of talent or accused of being bureaucratic, and a personnel department requirement? How much assessment is formally recorded and is it helpful to the organisation's objectives
Creating Commitment
The most important long term area is the ability to gain employees' commitment. This manifests itself in the way individuals deploy their discretionary effort in the pursuit of the job outcomes. The evidence shows that the way individuals choose to spend the limited amount of personal discretionary effort makes the difference.
1. Image: What is the underlying social impression offered by the industry sector and the particular organisation within the sector? Is the sector "politically correct", a community contributor or largely ill-thought of? What is the organisation's standing within that industry?
2. Leadership spirit: How is the leadership perceived by individuals in the organisation? Are they considered to be effective, providing clear direction and positive communication or remote and not listening?
3. Organisation effectiveness: How effective is the organisation at organising and deploying its resources? Is there an apparent excess of wasted time and material? Does the organisation run like clockwork?
4. Career opportunity: Does the organisation provide clear opportunities? What types of institutional barriers are there to career participation?
Using the above framework a generic shape of the reward offer can be built-up. The current offer can be compared with an "ideal" offer, using various forms of diagnostic, to indicate gaps between the actual and the desired. The magnitude of those gaps can be assessed and prioritised so that a reward management plan can be developed, putting scarce resources where it will have most impact.