10 Principles for the Management of Reward in Times of Recession
Due to the uncertainty of the economy at this time, the need for organizations to pay greater attention to the strategy of employee compensation in 2009 is more important than ever. In times of change, human resource professionals must be flexible, remaining faithful to the principles of their approach to talent management.
It sets out ten principles for the management of reward in times of recession:
- Focus resources on retaining and rewarding key talent, if people who have proven to be necessary.
- Not to cut harmful short term. It must ensure the resources and skills to the company.
- Ensure that performance management processes undertaken since human resources are understood properly by employees and implemented by line management.
- Do not leave the reward for good performance, but focus on the highest performing employees.
- Review sales targets and strategies to focus the sales force in the biggest opportunities.
- Find the cost savings. A review of business processes, human resource policies, tax and administration might disclose unnecessary expenses.
- Communicate on an ongoing basis the total value of the reward. The tendency to focus on the fixed salary that the employees generally underestimate the total compensation.
- Review compensation of directors to keep them effectively.
- Do not damage the company image by not developing a value proposition for the employee even during times of crisis.
- Continue to provide, and that silence creates fear and reduces employee commitment to the organization.
The deteriorating economic outlook poses a test for sound human resource strategies, which are made largely on the good times. If the problems are overcome, will be revealed as effective.