Trust, Opportunity & Reward Design

Q4 2009 is a really interesting time in the field of rewards.  Back last summer, when the experts gathered and spoke at the WorldatWork Total Rewards Conference, there was a lot of talk about this being a real time of opportunity.  About the nature of crisis as a game changer, a chance to hit the reset button on ineffective, obsolete reward practices.  I am now watching this prediction come to life at ground level where I live and work.

The fourth quarter of any year tends to be a little nutso for compensation consultants and, luckily for me, this has been true even in challenging economic times.  But it has caused me to fall behind in my blogging.  I have several posts in various stages of completion on the topic of game changing and what I see happening around me.  Hopefully, I'll get them finished and up soon, so I can benefit from your comments and reactions.

But one particular thought hit me hard this week, based on recent client conversations, and that is the critical role that trust will play in this whole game changer thing.  Just wanted to share that nugget here and now.  Employers who have earned and kept their employees' trust, by their actions before and particularly through the recession, have a tremendous bank of goodwill to draw upon as they consider reworking and repositioning their reward programs.  Employers who have squandered that trust will face a real uphill battle as they try to sell a changed game to their talent base.

One more way that what goes around eventually comes around, I guess.

It's a fascinating time to be working in compensation.  More soon.

Comments

[Derek Irvine, Globoforce]

You are right, indeed, Ann. As I wrote elsewhere about the Right Management research:

When asked “Do you plan to pursue new job opportunities as the economy improves in 2010?”, workers answered:
• 60% - Yes, I intend to leave
• 21% - Maybe, so I’m networking
• 6% - Not likely, but I’ve updated my resume
• 13% - No, I intend to stay

That’s 87% actively engaging in activity to leave your organization. Take a look around your company today. Which employees do you think are the 13% most likely to stay? I guarantee it’s not your top performers. Various studies on employee engagement so it is the most disengaged that stay in their current role. (That research linked to here: http://globoforce.blogspot.com/2009/12/resume-tsunami-coming-are-you-ready.html)

Many employers have squandered any loyalty or trust employees might have felt, often through simply failing to communicate. Employees understand what's going on in the economy and often understand even the more harsh actions that may need to take place. However, they cannot understand what they haven't been told. TALK with your employees. Tell them your strategies and plans. Include them in the discussion and you will do more to restore and rebuild trust than you could imagine.

[Ann Bares]

Derek:

Well said - thanks for the comment and the link.

[DJ]

I received last week, a CEO communication justifying our Annual Performance related variable pay being withdrawn. It stated that "Fortune 500 companies that are eliminating bonus payouts".

Should we feel warm in the comfort that if we vote with our feet the grass is no greener, or is this miss-information to quench the rath of the masses?