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Article on Aligning Reward and Talent

 

Suitable for:

Anyone seeking ideas or insights into practical steps to create alignment between an organisation's talent strategies and its reward programmes.

 

Background

Some organisations have talent schemes, and all have reward schemes, but so many fail to get the best from either. In this article, Janice Caplan and Michael Rose set out how to align the two to achieve business success.

 

Introduction

In these challenging times, organisations are under tremendous pressure to contain costs; yet, at the same time, they must manage rapid change as globalised markets react so quickly and, of course, they must continue driving towards long-term business goals. Surely these are incompatible objectives? Change demands investment, while cuts and redeployment sacrifice the long-term to immediate survival. HR can offer an approach that integrates talent management and reward and that will go some way to balancing these seemingly conflicting needs and making a substantial contribution to business success.


Where are we now?

Many organisations have talent programmes and all have reward schemes, but so many fail to get the best from either. Talent management is too often aimed at a small group of people in the organisation: those believed to have high potential, to be future leaders, or of particular worth. This has created egos and elites, bidding up pay for this group that is often disconnected from genuine results. It has created envy, disenchantment and disengagement among those excluded from favour, as the elite fail to deliver, which further reinforces the performance shortfall. Then organisations have to recruit externally because the process has also failed to provide the capabilities needed, when and where they are needed...

 

Janice Caplan and Michael Rose, Croner Human Resources 2011

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People in business today want outstanding learning and development, when they need it, at a time that suits them, and delivered in a manner that fits their learning styles and preferences. Businesses need people to come to grips with new challenges quickly. There is no time for catch up and it is vital to quickly decide which strategic opportunity to take advantage of, and then be able to act quicly. This requires a deep understanding of your people, and who has the potential and the aspiration to take on a particular challenge. It requires a workforce that is constantly learning and developing in line with the business needs on the horizon.

 

For the first time, businesses have several generations working side by side in the workplace, with different styles and perspectives. The standard approach to training and development is no longer appropriate. In its place, it is vital to have a range of tools and programmes that individuals can personalise, and make their own.

 

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