Overview

In these few months, one of the most common questions among total rewards and compensation practitioners  has been, "What should we do for our employees in a contracting economy: make cost-of-living adjustments to salaries, give cash subsidies for specific expenses, or provide annual increments in accordance to employee performance?"

The answer is simple if the goal of a total rewards program is kept top of mind: offer what is necessary to attract, motivate and retain the talent to achieve desired business results. The offers may vary by employee, organization and industry. End of the day, it is not necessary to balance the compensation and benefits ratio but rather have both elements structured to effectively suit the employees and the organisation’s policies as well.

Another factor that has come into play during times of economic downturn is the issue of cutting costs.   When organisations are experiencing an external factor like economic downturn, the first thing that is looked at to preserve revenues is to cut costs which include a pay cut for all employees. But care should be taken as a pay cut can actually demotivate employees in the long run.

Last but not least is the retrenchment dilemma, the last option an organisation takes when there are no alternatives left. Of course there are repercussions to be noted when this action is taken as the affected employee will not have just lost a job but his or her livelihood as well. Assurance that he or she will be given substantial means of support to last through his or her unemployment for a certain period of time can help to soften the impact.

At the Compensation and Benefits Day 2009, delegates will have the vital opportunity to enable them to grasp strategies that can help them to remain steady and maintain a balanced pay and rewards structure.

"The important thing is to recognize that it takes a team to produce successful work and the team ought to get appropriate credit for their efforts"