I read an article months ago after the Presidential election. The main message I took away was that HR could learn a lot by studying the 2012 election process. Hmmmm . . . .
Nevertheless I was impressed when I read it so I’d like to share some take-aways. If you study the Presidential election in 2012 ---- you will see how important various strategies were in winning the election.
Key points for Compensation in the article:
1) Look at all not just some data. Sometimes politicians, media and TV anchors tend to look only at the data that supports their opinions/beliefs.
Compensation may be guilty of the same thing.
Compensation examples:
-The Head of Compensation at your company doesn't think it's necessary to take a fresh look at the company’s 50%ile pay philosophy no matter that the top 3 fiercest competitors hired away 25 key employees in the past 4 months. Compensation knows these competitors’ salaries are higher than but doesn’t agree with their pay philosophy. The company has had the 50%ile position for years and it’s worked fine. Compensation says this turnover is just a temporary “fluke”.
-Compensation creates a global job evaluation system and assigns Administrative Assistants worldwide the same value---- no matter that in Japan bi-lingual Administrative Assistants are more highly valued than many engineering jobs. Some jobs in other countries don’t seem to fit the valuations either. But a single global system makes sense to Compensation, and besides his/her compensation buddies agree.
2) Don’t get “hung up” on past patterns or results. There is no certainty that past patterns will repeat themselves. In an election process, doing so would result in the use of many out-of-date campaign approaches. Failing to understand the changing electorate and demographic patterns can result in some important losses.
Most data that is available to Compensation today is historical. Turnover data, performance data, and even headcount reports all tell what has happened in the past. Relying on historical data is fine if the world doesn’t change --- but it does.
Look at what’s changed since your company’s last salary/merit review. Surveys won’t tell you everything you need to know. At the very least look at changes in the local environment.
Compensation example:
For each of your company’s locations:
- Are there any new competitors?
- Is competitor hiring level or ramping up?
- Has the local supply of talent changed?
3) Concentrate on the employee segments that have the most impact on business results. In elections, campaigns focus on “swing states”, high-priority ZIP codes, and key demographic groups that are believed to have the highest impact on the overall election results. Efforts to gain support in these population segments are key to winning elections.
“Prioritization” is a standard practice in business functions outside HR/Compensation. Sales, for example, relies heavily on prioritization. Customers are prioritized based on their potential sales revenue.
Compensation example:
Instead of treating all jobs “equitably” ---- prioritization in Compensation might focus on employees in business units/divisions that contribute the most to the company’s bottom line. Key employees in these functions should be given priority over other employees in ensuring they are well compensated and recognized.
So there you have it.
Think how much better our decisions would be if we included more data in our analysis and looked at ideas that don’t support our beliefs with an open mind? And what if we conquered our “safety blanket” of equitable employee treatment with more business-like attention to issues such as prioritization?
If politicians can do it ---- can’t we?
Jacque Vilet, President of Vilet International, has over 20 years’ experience in Global Human Resources with major multinationals such as Intel, National Semiconductor and Seagate Technology. She has managed both local/ in-country national and expatriate programs and has been an expat twice during her career. Her true love is working with local national issues. Jacque has the following certifications: CCP, GPHR, HCS and SWP as well as a B.S. and M.S in Psychology and an MBA. She belongs to SHRM, Human Capital Institute and World at Work. Jacque been a speaker in the U.S., Asia and Europe, and is a regular contributor to various HR and talent management publications.
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