Who Cares About Compensation?

Spoiler alert!  This article doesn't have a happy ending.

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What if you worked in an organization where the Head of Human Resources didn't view the Compensation function as vitally important to the organization?

I once worked in such a place.  Though I wasn't in a leadership role at that point the lesson learned was telling.  We weren't invited to critical HR planning sessions, my boss was never a member of the inner HR circle, and the department's list of annual objectives never included a compensation project.

It's bad enough when the senior leadership doesn't give you the time of day, but when your own Chief Human Resources Officer seems to agree that your role is a secondary appendage to the organization chart, whew!  That's not a place to build a career on.

So What's Wrong With Compensation?

Where does this attitude come from?  The possibilities are legend, but the culprit is usually the personal perspective of the people in charge.  For some reason these HR leaders consider the Compensation function at best a necessary distraction from the business of Human Resources.  Of course I have my opinions, but it's just that.  You likely have your own.  Some examples of those HR Leaders who do not value the Compensation function:

• The HR Generalist:  Here is the all-purpose Human Resource leader, who (typically) has gained their top position through experience in staffing, employee relations or organizational development.  It is unusual for this office holder to have cut their teeth in either Benefits or Compensation.  Specialty areas may be a mystery to them, a bit too cut and dried for their "It depends," or "How can I help you?" style.  They don't wish to be viewed as the "gatekeeper."

• Working the Chairs: This senior leader didn't rise through the ranks in HR, but only stopped there along the way.  So their strengths may be in Finance, Marketing, or another functional area.  They need to gain HR experience before they move on.  These folks don't usually understand or appreciate the role of Compensation, and sometimes confuse it with payroll.

• The Political Animal:  The genesis of this leader may be either of the above roles, but while leading HR they're focused on what will please top management.  Thus potential controversies that are often generated by new program ideas are frowned upon.  They may want to be considered a "business partner," but to get there are often accused of being "yes men."  Unfortunately that negative label doesn't go away once they reach the Executive Team.

• Retiree-in-waiting:  Bob is going to retire in a couple of years, and senior management has decided to "park" him in HR until the going away party.  Bob will not rock the boat, will seldom initiate new programs and has written the book on how-to administration and program maintenance.

Sound harsh?  These are real people that I have seen and experienced during the course of my career.  Others may consider them exceptions, which I hope is the case with your career.  Because with these leaders rarely does the nice guy with their nose to the grindstone actually win the day.  For them it would appear that image and exposure are more important than performance.

What Can You Do?

The answer rests with you, and what your career aspirations might be.  For some it's ok to sit back as the on-site compensation administrator and simply keep things afloat.  Maintain the status quo, keep the bosses happy and if problems crop up, kick the can down the road in the hope that the challenges will go away by themselves.

Not your cup of tea?  Well, you can rattle the bars of the professional cage that's restricting you - with questions, recommendations, warnings and red flags to gain attention, but that might prove more of a distraction and irritation to the powers that be and ultimately prove career ending for you - at least with that employer.

You can leave.  Start searching for a better role model in a Leader, and an HR Department that upholds the integrity of its role in the organization.

What I don't think you can do is somehow magically change the attitude of the HR Leader styles mentioned above.  Those are ingrained attitudes firmly held and you'd be swimming upstream trying to make a difference.

So the trick is to avoid getting into a career hole in the first place.  Easier said than done, I'm afraid.

Chuck Csizmar CCP is founder and Principal of CMC Compensation Group, providing global compensation consulting services to a wide variety of industries and non-profit organizations.  He is also associated with several HR Consulting firms as a contributing consultant.  Chuck is a broad based subject matter expert with a specialty in international and expatriate compensation.  He lives in Central Florida (near The Mouse) and enjoys growing fruit and managing (?) a clowder of cats.

Creative Commons image,"Darth Grader," by JD Hancock

Comments

[June Braithwaite]

I couldn't agree with you more, Chuck. As a fellow CCP, compensation and benefits have always been my passion in the corporate world.

Last year I decided to "rattle the bars" of my professional cage and partner with someone who complements my skills with his highly regarded knowledge in financial advising. Today we are proud to be able to offer advice to companies that helps them to recruit and retain top talent. For professionals, innovative strategies like ours provide them with the necessary tools to build personal wealth for their retirement.

[Becky Stauffer, MPA, SPHR, SCP]

If I was fortunate enough to have a Compensation Specialist on my team, they would be highly valued.

As the Director of HR, having someone with this expertise would be amazing.

[Jules]

The work culture in the US seems to have the philosophy that when someone moves on too quickly, that something is wrong with them. When I explained to a compensation trainer of why I left the organization, he was very upset and thought that I should have stayed in the position regardless of the problem. When I was in the situation, a European compensation trainer had advised me to leave. I thought and considered what was important to my career and left. I doubt I would be where I am if I stayed and accepted status quo.

Culture is hard to change. I can change who I sell my service to if I though that my employer or HR leaders are not doing right by me. Somehow, that is very frowned upon. I think people forget, life is too short to suffer in a role where no one appreciates what you bring to the table or doesn't treat you right.