Expert Perspective by Grahall’s OmniMedia Editorial Board
April 1, 2010 was not just April’s Fools Day but also National Census Day, the day that the US Census Bureau wanted all Americans to use “as a point of reference for sending your completed forms back in the mail”. This prompted our Editorial Board to consider what some of the important questions are that companies should be asking themselves to move forward during these challenging economic times.
Surely, the number 1 question on that list for many companies is: How can we increase our revenues, profits and customer base? At Grahall, we see a better way of phrasing this question as: “How do we motivate and incent employees and executives to increase revenues, profits and customer base?”
With companies in some industries still buckling under the weight of the Great Recession, others looking at a tepid recovery and a fortunate few now returned to prosperity, the answer to how to increase revenues, profits and customers will vary. But the answer to how to motive employees and executives might be very much the same: Ensure that the compensation rewards program is aligned with the company’s business strategy, so that the money, the mix of components and the messages that are communicated through these programs drive the necessary business results.
To ensure you are on the right track and your rewards programs are aligned, there are a number of other questions that should be considered. If you can answer these questions, you are well on your way to enhancing business results:
1) What changes, if any, need to be made to our long, medium or short term business strategy based on the current economic indicators and our financial position?
2) What are the expectations of our stakeholders (including shareholders)? How can we work cooperatively in the business environment that we find ourselves?
3) What is the “risk/reward” relationship that we find ourselves in and how does this impact our business strategy?
4) Do people considerations—culture, rewards, and organizational design – need to be changed to meet the requirements of a new economic and risk reality?
5) Is my reward strategy truly aligned with my business and or people strategy?
6) Is my reward strategy providing my company a competitive advantage?
7) Are our company’s critical success factors facilitated by our reward strategy?
8) Do we have the right mix among rewards components?
9) What are the direct and indirect messages our reward program is sending to the workforce?
10) What are the strengths and weaknesses of our rewards program versus our competition?
Unlike the US census, which asks for your phone number (so they can call if they “don’t understand an answer”), we’ll give you ours. If you are having trouble answering these questions for your own company, contact us we can help.
Call (646) 290-5129 or email firstname.lastname@example.org
Contact Grahall’s OmniMedia Editorial Board at Edie.Kingston@grahall.com