Citation
Sorensen, A. (2014), "Event reviews", Strategic HR Review, Vol. 13 No. 2. https://doi.org/10.1108/SHR.37213baa.011
Publisher
:Emerald Group Publishing Limited
Event reviews
Article Type: Resources From: Strategic HR Review, Volume 13, Issue 2
Future Reward Summit, University of Cambridge, UK, 24 September, 2013
Leading HR professionals, researchers, business leaders, and policy makers met at the University of Cambridges Downing College to explore the future of reward in an increasingly competitive, global environment. The summit was a collaboration between the University of Cambridges Downing College; WorldatWork, a global HR association focused on compensation and benefits; and E-Reward.co.uk, the largest network of reward practitioners in the UK.
The summits theme, "Future reward: strategies for a hyper-competitive world", explored the rapidly changing face of attraction, motivation, and retention in an environment shaped by technological change, globalization, shifting demographics, and intense pressure to be both competitive and cost-conscious.
The following five themes dominated the days discussion:
1. The changing structure of organizations requires a different approach to reward design. Antiquated models of reward that require high resource and complex administration must be replaced by approaches that emphasize flexibility and greater customization, and are directly tied to an organizations business strategies and objectives.
2. The key drivers of employee attraction, motivation, and performance are changing rapidly. With demographic changes and further globalization, todays workforce demands a different "value proposition" that integrates financial and non-financial reward, encompassing opportunities for advancement, career development, and meaningful work.
3. Organizations cannot pay for everyones performance. Organizations face huge pressure to manage carefully the cost of their reward programs. Organizations are finding it imperative to focus their merit budgets to reward top performers, high potentials and those with critical talent – while keeping "middle" performers happy and productive. Carve outs, lump sum bonuses rather than merit increases, and other innovations in reward delivery are likely to continue into the future. Bill Parsons, VP of Human Resources at ARM Holdings, emphasized that "organizations should want the best people, not necessarily the cheapest people."
4. Globalization continues to have a profound impact on how multinational organizations approach decisions about reward strategy and design. Companies must increasingly decide what the "core elements of their reward offerings are in various parts of the world and must manage the real differences between countries that are growing rapidly and those that are treading water. Managing communications, setting appropriate expectations, and ensuring consistency are all particularly challenging in this environment.
5. Organizations must be deliberate in matching the design and structure of their reward programs with their business goals and objectives and the culture of the organization. Organizations must avoid the tendency to value sameness, resist the drift to the midpoint, and focus more closely on the talent that is necessary and truly core to the success of the organization. Anne Ruddy, president of WorldatWork, argued that a key challenge is rewarding both the "vital few" and the "vital many" that are critical to an organizations success. Ultimately, companies must define and own their employment brand – or someone else will.
Plans are underway for a second summit in Fall 2014. More details will be posted at http://www.worldatwork.org/conference/html/conference-home.html
Adam Sorensen
Global Practice Leader, WorldatWork, adam.sorensen@worldatwork.org