Now Hear This: Steer Carefully Around Fads & Fashions!

Tell me... what's the hottest new trend in compensation today?

OK, show of hands: How many (besides me) cringed in response to that question?  Yes?  Gold stars for all of you!

As with, apparently, every other field of human endeavor, fads in compensation (and in people management overall) come and go.  Some of them stick and eventually become absorbed as part of the enlightenment and forward movement of the profession.  Others, not so much - and the early adopters live to regret them or quietly resign for new pastures, leaving the aftermath to their sorry successor.

So, when a new trend does come rolling across the horizon, how do you gauge whether pursuing it is right for you and your organization?

Leadership expert Dr. Todd Dewett shares some good advice in this week's issue of the HRExaminer about "keeping up with the Joneses."  He tells us that there are only two valid reasons to grab a seat on the latest people-related bandwagon:

• Honest fit, and
• Sufficient change capacity.

Determining "honest fit" requires a careful, sober examination of the match between the particular practice or tool and your organization's business needs, values and culture - as well as your compensation philosophy and capabilities.  Does it really - really - mesh with and support the way your organization operates and where it is headed ... or are you being seduced by a bunch of cool sounding buzzwords?

Equally important is a realistic appraisal of the organization's change capacity, something I fear we reward geeks can be prone to overlook.  As Dr. Dewett points out, "every organization has a finite ability to reinvent, improve and transform itself at any one point in time."  He suggest scanning the organization to get a handle on the number and kinds of change initiatives currently underway and making an honest assessment as to whether there is truly any "gas left in the tank."  Imposing a new compensation innovation, even a well-chosen one, when everyone (especially your critical first line manager group) is suffering from severe change fatigue could be setting the stage for inevitable failure.

The hottest new trend in compensation?  Right for you ... or not? 

Hopefully you're prepared to make that call!

Ann Bares is the Editor of Compensation Café,  Author of Compensation Force and Managing Partner of Altura Consulting Group LLC, where she provides compensation consulting services to a wide range of client organizations.  She earned her M.B.A. at Northwestern University’s Kellogg School and enjoys reading in her spare time.  Follow her on Twitter at @annbares.

Image: Creative Commons Photo "Miss Sixty Fall New York Show" by Art Comments

Comments

[Laura Schroeder]

Great advice for shoes and compensation alike!!!

[Ann Bares]

Ah. A wise parallel!