It is no secret that today’s employees don’t expect to stay in an organisation for very long. The workforce has never been more mobile, dynamic and fluid.
Talent mobility poses significant challenges in talent development for the unprepared employers yet, at the same time, provides tremendous opportunities for organisations that are prepared for this, especially with the help of proper technology.
The organisation that has the ability to motivate and develop its employees will be able to attract the best talents. Being able to nurture and attract top talents will give it a strong competitive edge in today’s business environment.
Employers usually try to keep top talents through a performance reward system with money being the primary motivator. But it has been proved that, when used as the sole motivator, money does not have a lasting impact on staff performance.
To be effective, a pay-for-performance system must take into account the full breadth of effective rewards that go beyond the financial, and become a truly motivational tool.
A good reward system will have the right balance of four key factors: expectations, achievements, financial and non-financial rewards and corporate strategy. Erideon, a business process and collaboration software company, calls this the Total Rewards Link.
1. Having clear expectations
An employee must be very clear of what is expected of him, how his achievements are measured and recognised and how these fit into the organisational goals. He must also be clear of his prospects in the organisation.
2. recognise achievements
To have the greatest motivational impact, achievements must be objective, measurable and visible, with a transparent link to individual performance. The perception of fairness will become invaluable during the reward process, and even more useful whenever difficult firing decisions need to be made for under-performers.
3. Look beyond financial rewards
Financial rewards should not be used as the exclusive motivating force. Recognition can also implemented by:
providing leadership development programmes;
providing internal advancement schemes that encourage employees to build their careers within the organisation;
giving staff increased responsibilities to create a sense of trust in their ability to handle and accomplish bigger tasks; and
providing work diversity by allowing staff to explore other functions within the organisation.
4. Using data strategically
Organisations can use the accumulated wealth of data about employees, such as their performance, their skills and their aspirations, to transfer knowledge and practices from a division that constantly produce top performers to others. The data can also be mined for the purpose of:
giving feedback on existing policies and practices implemented to retain talent, attract new people and increase productivity;
getting vital clues on what the employees are saying and how employers can listen better;
determining whether the employees’ objectives and goals are aligned throughout the organisation;
monitoring which key competency areas to focus on; and
developing and implementing an effective Total Rewards System.
Herein lies the challenge. The ability to collect, combine and comb through such a vast amount of data in an effective, timely and continuous manner is hardly possible using manual methods. The solution is technology.
Good technology must help organisations make sense of all the acquired data. It must also take away the administrative burden from the Human Resource (HR) team in a manner that is transparent, integrated, flexible and efficient.
At the same time, HR managers must ensure that they do not fall into the trap of replacing their administrative tasks with the administration of technology.
The fundamental attributes that make technology adoption effective are:
Efficiency: Achieving outcomes and objectives with minimal intrusion.
Integration: Combining disparate areas into a cohesive framework.
Information: Giving real-time, meaningful access to all accumulated data.
Innovation: Providing an effective feedback mechanism to allow continuous improvement of policies and processes.
Agility: Able to adapt to required changes swiftly and with minimum effort.
An innovative and powerful technology can turn complex rules into streamlined processes, obscure information into visible information, subjective actions into objective policies and expectations into achievements, achievements into rewards, rewards into strategy.
When implemented efficiently, technology transforms the HR function from an administrative role to a strategic one.
Empowering HR as the organisation’s strategic arm, proper technology and a process management system can then be used to build employee loyalty and maintain a culture of excellence in the organisation.
This will ultimately help an organisation achieve an edge over its competitors.