Navigating Motivational Anxiety: A Guide to Overcoming Challenges

Motivation is a powerful force that drives individuals to achieve their goals and aspirations. However, the journey towards success is often accompanied by a lesser-known companion – motivational anxiety. This unique form of anxiety can manifest when individuals feel overwhelmed or uncertain about their ability to meet their own expectations. In this article, we will explore the concept of motivational anxiety, its causes, and practical strategies to overcome its challenges.

Understanding Motivational Anxiety:

Motivational anxiety is a psychological state characterized by the fear or apprehension associated with pursuing one’s goals. Unlike general anxiety, which may stem from external stressors, motivational anxiety is often internal, arising from the pressure individuals place on themselves to succeed. This internal pressure can lead to a range of emotions, including self-doubt, fear of failure, and a sense of inadequacy.

Causes of Motivational Anxiety:

High Expectations: Setting excessively high expectations for oneself can create immense pressure and trigger motivational anxiety. The fear of not living up to these expectations can be paralyzing.

Comparisons to Others: Constantly comparing one’s progress to that of others can contribute to motivational anxiety. It is essential to recognize that everyone’s journey is unique, and comparisons may not accurately reflect personal growth.

Fear of Failure: The fear of failure is a common driver of motivational anxiety. Individuals may become so focused on avoiding failure that they struggle to take necessary risks and steps towards their goals.

Perfectionism: Striving for perfection in every aspect of life can lead to anxiety. Accepting that imperfections are a natural part of the learning process is crucial for overcoming motivational anxiety.

Strategies to Overcome Motivational Anxiety:

Set Realistic Goals: Break down larger goals into smaller, achievable tasks. Setting realistic goals helps manage expectations and reduces the likelihood of feeling overwhelmed.

Focus on the Process: Instead of fixating on the end result, shift your focus to the process of growth and learning. Embrace the journey, recognizing that challenges contribute to personal development.

Practice Self-Compassion: Treat yourself with kindness and understanding. Acknowledge that setbacks and mistakes are part of the learning process and an opportunity for growth.

Develop a Growth Mindset: Cultivate a growth mindset by viewing challenges as opportunities to learn and improve. Embrace the idea that abilities can be developed through dedication and hard work.

Limit Social Comparisons: Minimize comparisons to others and focus on your individual progress. Celebrate your achievements, no matter how small, and appreciate the unique path you are on.

Seek Support: Share your goals and challenges with supportive friends, family, or mentors. Having a strong support system can provide encouragement and perspective during difficult times.

Motivational anxiety is a natural part of the journey toward success, but it doesn’t have to be a roadblock. By understanding its causes and implementing practical strategies, individuals can navigate motivational anxiety and continue progressing toward their goals. Remember, success is a process, and every step forward is a triumph in itself.

Generative AI in Human Resources

As we open the door on 2024, many of my colleagues and I will be focusing on how to best utilize the newer generative AI capabilities in our Human Resources functions. Generative artificial intelligence (AI)—data-trained technology that uses prompts to create content—has seen a massive uptick in adoption over the past year. The technology has advanced significantly within a short timeframe and, relatively speaking, it’s just getting started.

OpenAI’s research estimates that 80 percent of today’s workers could see their jobs impacted by generative AI. The natural concern, from the workforce is that impacted will mean, taken over by, but, in most cases, that is far from the truth. Companies should determine how to use generative AI with intention, in a productive, safe, and human-first way. Some of the most compelling ideas are below:

  1. Resume Screening and Candidate Matching:
    • Use generative AI to analyze resumes and match candidates to job descriptions based on skills, experience, and keywords.
    • Improve the efficiency of the initial screening process by automating the identification of suitable candidates.
  2. Automated Interview Scheduling:
    • Implement chatbots powered by generative AI to facilitate interview scheduling.
    • Allow candidates to interact with chatbots to find suitable interview slots, answer frequently asked questions, and receive information about the recruitment process.
  3. Employee Onboarding and Training:
    • Develop AI-driven chatbots or virtual assistants to guide new employees through the onboarding process.
    • Provide automated training modules and resources tailored to individual employee needs.
  4. Employee Assistance and Support:
    • Use AI-powered chatbots to answer employee queries regarding HR policies, benefits, and general information.
    • Enhance employee experience by providing quick and accurate responses to common HR-related inquiries.
  5. Performance Management and Feedback:
    • Implement AI tools to assist in performance evaluations by analyzing employee performance data.
    • Provide real-time feedback suggestions for managers based on language models, helping to improve the quality and consistency of feedback.
  6. Employee Engagement Surveys and Sentiment Analysis:
    • Leverage AI to analyze employee feedback from surveys and other sources.
    • Identify trends, sentiments, and areas of concern to proactively address employee engagement and satisfaction issues.
  7. Skills Assessment and Development:
    • Use generative AI to assess employee skills and identify areas for development.
    • Provide personalized learning recommendations and training programs based on individual employee strengths and weaknesses.
  8. Policy Compliance and Legal Support:
    • Implement AI tools to ensure HR policies and procedures align with legal requirements.
    • Provide legal support by analyzing contracts, identifying potential risks, and offering suggestions for compliance.
  9. Predictive Analytics for Employee Retention:
    • Utilize generative AI to analyze historical data and predict employee turnover.
    • Identify factors contributing to attrition and develop strategies for employee retention.
  10. Internal Communication Enhancement:
    • Develop AI-driven tools to enhance internal communication within the organization.
    • Generate automated newsletters, announcements, or other communication materials to keep employees informed and engaged.

It’s essential to approach the integration of generative AI in HR with careful consideration of ethical and privacy considerations. Additionally, ongoing monitoring and human oversight are crucial to ensure the responsible and fair use of AI technologies in the workplace.  Done correctly, that is much to be gained!

Generational Perspectives on Employment: A Contrast between Baby Boomers and Millennials

The world of employment has evolved significantly over the years, with different generations experiencing and interpreting work in distinct ways. Baby boomers and millennials, What Generation Am I? A Guide to Generations by Year (parents.com)separated by several decades, have grown up in contrasting socio-economic, technological, and cultural landscapes. These factors have played a role in shaping their perspectives on employment. In this article, we will delve into the divergent viewpoints of baby boomers and millennials regarding work, examining their values, priorities, and approaches to careers.

Work-Life Balance

Baby Boomers:

For many baby boomers, work was often seen as a means to provide for their families and secure a stable future. Many were part of the traditional 9-to-5 work culture, where long hours at the office were considered necessary for career advancement. The concept of “putting in the time” was deeply ingrained, often at the expense of personal and family life.

Millennials:

Millennials, on the other hand, tend to prioritize work-life balance. Work Life Balance | Mental Health America (mhanational.org)They witnessed their parents’ dedication to their jobs and the toll it took on family life. As a result, millennials often seek flexible work arrangements that allow them to balance their careers with personal interests and family time. Remote work and freelance opportunities are particularly attractive to this generation, enabling them to integrate work into their lives, rather than the other way around.

Career Loyalty

Baby Boomers:

Loyalty to one’s employer was a hallmark of the baby boomer generation. Many individuals spent the majority of their careers at a single company, viewing job stability and benefits as vital components of their employment. Climbing the corporate ladder and staying with the same company until retirement were common aspirations.

Millennials:

Millennials tend to value personal growth and skill development over long-term loyalty to a single employer. They are more willing to change jobs and even switch careers in pursuit of new challenges and opportunities. This fluid approach to employment can be attributed, in part, to the economic instability witnessed during their formative years and the rise of the gig economy, What is the gig economy and what’s the deal for gig workers? | World Economic Forum (weforum.org) which has normalized job hopping and freelancing.

Purpose and Fulfillment

Baby Boomers:

While many baby boomers found purpose and fulfillment in their work, these aspects were often secondary to the financial stability that employment provided. Career choices were frequently influenced by practical considerations rather than a quest for personal passion.

 

Millennials:

Millennials seek meaning and purpose in their careers. They are more likely to prioritize jobs that align with their values, allowing them to make a positive impact on society and the environment. This generation places a premium on job satisfaction and is willing to make career decisions that reflect their personal beliefs and goals, even if it means sacrificing higher-paying opportunities.

Technology and Adaptability

Baby Boomers:

Baby boomers adapted to technology as it emerged, but their careers were not as intertwined with digital tools and platforms as those of millennials. They often had to learn new technologies later in their careers, and some may have viewed technology as a disruptor rather than an enabler.

Millennials:

Having grown up in the digital age, The Digital Age: The Era We All Are Living In – DZone millennials are comfortable with technology and its rapid evolution. They readily embrace new tools and platforms, which has contributed to the rise of remote work, digital nomadism, and the gig economy. This adaptability allows them to navigate an ever-changing job market with relative ease.

In conclusion, the differing perspectives of baby boomers and millennials on employment reflect the evolving nature of work and societal values. While baby boomers often prioritized stability and financial security, millennials place greater emphasis on work-life balance, purpose-driven careers, and adaptability. Understanding these generational differences Generational Differences in the Workplace [Infographic] (purdueglobal.edu) is crucial for employers, policymakers, and individuals seeking to thrive in the modern world of work, fostering collaboration and harnessing the strengths of each generation.

The Pervasive Influence of Proxy Advisory Firms on Public Company Shareholders

Proxy advisory firms, once relatively obscure entities, have risen to prominence in recent years as influential players in the corporate governance landscape. These firms provide crucial recommendations and analysis on various matters put forth during shareholder meetings, profoundly impacting the decision-making processes of public company shareholders. This article explores the pervasive influence wielded by proxy advisory firms and the implications of their recommendations on corporate governance and shareholder engagement.

Understanding Proxy Advisory Firms:

Proxy advisory firms, such as Institutional Shareholder Services (ISS) Governance Advisory Services | ISS (issgovernance.com)and Glass, Lewis & Co., Glass Lewis – Proxy Voting have emerged as critical intermediaries between companies and their shareholders. Their primary responsibility lies in providing unbiased research, analysis, and recommendations on matters put to vote during annual meetings, Annual General Meeting (AGM) – Overview, Public Companies (corporatefinanceinstitute.com) including executive compensation, board elections, mergers and acquisitions, environmental and social proposals, and other critical governance issues.

Influence on Shareholder Voting:

Shareholders of public companies, particularly institutional investors, often rely on the research and guidance provided by proxy advisory firms to make informed voting decisions. The firms’ recommendations carry significant weight, as they possess a reputation for thorough analysis and objectivity. As a result, their guidance can shape the outcomes of shareholder votes, leading to substantial impacts on the companies in question.

Effect on Corporate Governance:

The recommendations of proxy advisory firms can influence corporate governance practices within public companies. Faced with the prospect of unfavorable voting outcomes, companies may be compelled to address governance deficiencies, enhance transparency, and align executive compensation with performance metrics. This external pressure to conform to best practices can foster more accountable and responsible corporate leadership.

Controversies and Criticisms:

Despite their widespread influence, proxy advisory firms have faced criticisms on various fronts. Concerns have been raised about potential conflicts of interest, as these firms may provide both proxy advisory services and consulting Home – ISS Corporate Solutions to companies seeking to improve their governance practices. Critics argue that this duality could compromise the firms’ objectivity and independence.

Moreover, some argue that proxy advisory firms’ methodologies may not always be entirely transparent or reflective of the unique contexts of each company, leading to recommendations that do not consider specific nuances of the business. This raises questions about whether the firms’ recommendations always serve the best interests of shareholders in every case.

 

The Balancing Act:

The influence of proxy advisory firms is a delicate balance between providing valuable guidance to shareholders and the potential risks associated with undue concentration of power in their hands. Regulators and market participants have recognized the significance of proxy advisory firms and have taken steps to promote greater transparency, accountability, and oversight in their operations.

Engaging with Proxy Advisory Firms:

Public companies are increasingly engaging with proxy advisory firms to ensure that the firms’ assessments consider a comprehensive view of the company’s governance practices and long-term strategic vision. Constructive dialogues between companies and proxy advisors can lead to more accurate assessments and a deeper understanding of the company’s unique circumstances.

In conclusion, proxy advisory firms play an undeniably influential role in shaping the corporate governance landscape by providing vital recommendations to shareholders. While their impact has led to positive changes in corporate practices, concerns regarding their objectivity and methodologies persist. Engaging in constructive dialogue with these firms and promoting greater transparency in their operations may lead to more balanced and informed decision-making, ultimately benefiting both public companies and their shareholders. As these firms continue to evolve, it is essential to strike a harmonious balance that upholds their value while mitigating potential risks to corporate governance and shareholder interests.

Coach versus Mentor

A coach and a mentor are both valuable resources for personal and professional development, but they serve different roles and have distinct characteristics. Here are the main differences between a coach and a mentor:

Purpose and Focus:

Coaching: Coaching The Role of a Coach in The Workplace | EZRA (helloezra.com) primarily focuses on performance improvement and goal achievement. A coach helps individuals identify their goals, develop action plans, and provides support, guidance, and feedback to enhance their skills and reach their desired outcomes. The emphasis is on short-term objectives and specific areas of development.

Mentoring: Mentoring 10 Reasons Why You Need a Mentor | Indeed.com is more about long-term personal and professional growth. A mentor is someone with extensive experience and knowledge in a particular field who offers guidance, advice, and wisdom to a less-experienced individual. The focus is on sharing insights, imparting wisdom, and nurturing the mentee’s overall development.

Relationship:

Coaching: The coach-client relationship is typically formal and structured. Coaches establish a professional relationship based on trust, confidentiality, and clear boundaries. They work collaboratively with clients to explore their goals, challenges, and strategies for improvement.

Mentoring: The mentor-mentee relationship is often informal and built on a foundation of mutual respect and trust. Mentors usually have a personal connection or shared interest with the mentee. The relationship tends to be more flexible and can involve discussions about various aspects of life and career.

Expertise and Experience:

Coaching: Coaches may or may not have specific expertise in the client’s field. They focus more on coaching skills, such as active listening, questioning, and providing support. Coaches help individuals develop their own solutions and perspectives by drawing out their strengths and potential.

Mentoring: Mentors possess extensive experience, knowledge, and expertise in the mentee’s field or area of interest. They share their wisdom, offer advice, and provide insights based on their own professional journey. Mentors may also provide introductions to their network or offer career guidance specific to the industry.

Duration and Intensity:

Coaching: Coaching engagements are typically time-bound and have a specific duration. The Four Stages of a Coaching Assignment (coaching-focus.com)Coaches work with clients for a defined period to achieve their goals or address specific challenges. The frequency of coaching sessions can vary depending on the individual’s needs and availability.

Mentoring: Mentoring relationships tend to be more open-ended and can last for an extended period, sometimes even spanning years. How Long Should Mentorship last? (mentorloop.com)Mentors offer ongoing support and guidance as the mentee progresses in their personal and professional journey.

Approach:

Coaching: Coaches use a structured and goal-oriented approach, employing various techniques and methodologies to help clients gain clarity, set objectives, and take action. The Best Ways for Coaching an Employee in the Workplace | Indeed.comThey facilitate self-discovery, encourage self-reflection, and help clients overcome obstacles.

Mentoring: Mentors take a more informal and nurturing approach. They provide guidance, share experiences, and offer advice based on their own successes and failures. Mentors often provide a sounding board for ideas, offer perspective, and encourage the mentee’s growth.

It’s important to note that these distinctions are not always absolute, and there can be overlap between coaching and mentoring depending on the specific context and the individuals involved. The terms “coach” and “mentor” are sometimes used interchangeably, and individuals may fulfill both roles to varying degrees.

The Key to Success

We have all been there.  Should we buy the house or not?  Should we go back to school or put our energies into our current role Should I Go Back to School During a Recession? – Kenzie Academy (snhu.edu)?  Should we hire the candidate or move on?  We, more frequently than not, choose to stay the course.  We choose not to buy the house and to stay where we are, we choose not to return to school and we choose not to hire the candidate.  We pat ourselves on the back for making a great decision.  The house was too expensive, and we probably couldn’t have sold our current home, we probably couldn’t have managed to further our education and continue to work and that candidate that we decided to turn down was lacking in at least 6 different ways.  You have avoided what was certain to be a failure.  The question is, whose failure are you actually trying to avoid and what are you giving up when you are unwilling to take a risk? The Incredible Power of Taking Risks in Life – The Daily Positive

The fact of the matter is, the greatest achievements require going outside of your comfort zone and taking a well thought out risk.   Many of us have a difficult time dealing with the uncertainty that goes along with taking risks. We grow uneasy not knowing the outcome and we fear potential failure. What if I cause my family financial ruin?  What if I lose my job because I can’t put in as many hours as before? What if the candidate that I hire isn’t perfect and I am blamed? At the root of most of these questions is the questions “What if I’m not good enough?”  

One way to combat the fear of risk taking is to ask yourself “What if” or “So what?”  These questions can diffuse the negative self-talk by providing alternatives. Taking a risk to achieve a goal requires courage to face the fear of uncertainty. No matter the outcome, either way, we grow through the process and become more resilient and confident.  There is no right or wrong answer to many of life’s questions and avoiding them all together ensures that you never allow yourself the opportunity to grow.

Another way to combat the fear of uncertainty is to remember that in almost every situation, you are allowed to make a U-turn.  If the decision you made does not work out as you expected it to, then make another decision.  Figure out what your learnings are, what experience you took away from the situation and move on.

One of the more obvious ways to reduce the fear of risk is to learn as much as you can about the experience you are considering embarking on. Career advice: How to get better at taking risks (usatoday.com) Find other people who have done what you are considering doing and get their advice, listen to what they have learned and what they would have chosen to do differently.

Successfully taking risks The Importance Of Taking Risks (7 Reasons To Take More Risks) (eightysixfourhundred.com)can lead to very positive outcomes including:

  • Standing out form the crowd
  • Helping you to feel alive and empowered
  • Enabling you to think more creatively
  • Helping you to learn about yourself

Risk taking can be healthy and help people develop confidence. Any failure you experience is part of the success process, not the antithesis of success.  If you aren’t willing to risk failing it is likely you will never be willing to take the risks necessary to experience great success!

Time Affluence

We are all familiar with the term financially affluent, however, the term gaining traction today is time affluence.  Time affluence Time Affluence Increases Happiness. So How Do You Achieve It? – MOJEH is when you feel like you have enough time to relax or pursue meaningful activities. Time poverty is when you feel stressed because you are constantly rushing and feel you never can catch up.  It becomes especially obvious during this time of year when many employees are off work for the holidays.  People slow down and start wondering whether the hamster wheel they are on is truly the best way to enjoy and bring real meaning to their lives. In fact, four out of five adults report Why You Never Seem to Have Enough Time (berkeley.edu) feeling that they have too much to do and not enough time to do it. People who experience less time affluence also experience less joy each day. They laugh less. They are less healthy, less productive, and more likely to divorce. In one study, stress related to time poverty produced a stronger negative effect on happiness than even unemployment.

Unlike money, where we have choices to either spend what we have more wisely or create/earn more, we cannot increase our time.  We all have the same 24 hours each day. So, the option that leaves us with is finding a way to use our time most wisely.  Below are some ways to get the most out of the time we have.

Meditate

Strangely enough, taking downtime, especially to meditate, How to Meditate – Mindful can make us more productive in the time we spend working or actively engaged.  Especially if you have a difficult problem to solve.  Our subconscious minds will often continue to work after we have taken a break, allowing us to come back and see new solutions.

New Experiences

Engaging in new experiences can alter our sense of time.  We have all had the experience of time moving more quickly or slowly depending on what we are doing and how engaged at the moment we are.  When we free our minds to try new things, we allow ourselves the gift of experiencing our daily life differently.

Funding Time

Research has shown that people that make the decision to “buy” their way out of unenjoyable activities frequently respond more favorably to being time affluent.  The peace of mind you receive by giving yourself 3 hours of housekeeping/cleaning services may pay big dividends in your life.

Block Time

Blocking out time What Is Time Blocking And How Does It Work? (2021 Guide) – Biz 3.0 (timedoctor.com) on your calendar to just think or catch up with someone you haven’t seen in a while starts to reframe how you think about time.  In our “always-on” society, there is an expectation that we will respond to e-mails within minutes, creating a vicious circle.  Blocking time for downtime and treating it as just as important as the next barrage of e-mails can keep you feeling more in control of your day.

Money and time have much in common.  They can both be measured, and we feel as if we never have enough of either, forcing us to constantly choose between the two. The choices that we make, every day, can powerfully shape our feelings of fulfillment and happiness from the moments, days, and years of our lives. Choose wisely to enjoy your definition of a life well-lived.

2018 Canadian HR Trends

sherrie-suski-canada

It is always interesting to look at Human Resources Trends from around the world to explore the similarities and differences of varying cultural perspectives.  As our parent company is Canadian, let’s look at a few of the trends that are top of the list for 2018.  Morneau Shepell compiles an annual list of Canadian HR Trends:

Insights on what HR leaders are expecting in the coming year:

 

• Improving employee engagement is a top priority

Employee Engagement is top of mind for companies in the US as well.  Not only for altruistic motives, but for the sheer fact that engagement can be tied to better productivity and bottom line numbers all around.  Trying to tap into the discretionary effort each employee has is big business. http://www.snacknation.com/guides/definitive-guide-employee-engagement/

• Streamlining administration and absence management continue to be focus areas

Streamlining administration is a worthy cause in any country.  Streamlining can take the form of creating new processes or automation.  Robotic process automation has real potential to transform the mundane tasks in HR.

HR leaders continue to be cautious about salary increases.  Salaries expected to increase by 2.3 per cent in 2018.

While salary increases are trending just slightly higher in the US, there are still concerns about how to differentiate between average and high performers with such small increase budgets.

• Employers are looking at workforce data in silos, with very few looking at data in an integrated way

Data will be THE FOCUS in 2018 whether in silos or a more integrated approach. 

• Complex mental health claims are the top disability management concerns

Large claim management in general is a concern.  A few large claims can turn the loss ratios in the wrong direction.

• Manager training is a focus in managing absence and disability

Manager training is a focus for all companies.  It should encompass the hard skills like managing absenteeism and disability LOA’s, but should also encompass softer skills like having difficult conversations, confrontation and inspiring your employees.

• Organizations are concerned that their employees are not adequately prepared for retirement

This is a growing concern amongst many US employers as well.  Financial wellness training for the workforce is a partial solution.  Other approaches may include automatic enrollment in 401(k) plans and writing plan documents to exclude the popular loan provisions.

Companies around the globe have the same goals, to inspire their workforces, yielding a team of more engaged workers and better profits at the bottom line.

Predictive Analytics in Human Resources

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Data based decision making and predictive analytics are buzz words you are hearing a lot about these days.  However, they are emerging from the dark corners of the developer’s worlds and into the light of mainstream business operations. I was speaking at an Analyst update earlier this week and the question came up “which companies do you follow that are using predictive analytics in Human Resources?”   A great question, but the answer was, unfortunately, no one.  Although it may be some time before this data based approach becomes mainstream in the world of Human Resources, there are a plethora of reasons it should.  

Let’s start with a definition of predictive analytics.  It is basically just a script or a technology that learns from current data and then uses that current data to “predict” or forecast upcoming data or behavior. Think about how your credit score works.  The rating agencies use data, your past history of paying on time, as well as other data points, to “predict” your ability and willingness to pay on time for a new loan.

HR has massive set of data on its employees.  By applying predictive analysis to these data sets, HR moves toward becoming more of a strategic partner at the table.  Decisions become fact and data based instead of depending on someone gut feelings or instincts.  Predictive analytics allows HR to forecast the impact that different policies will have on their workforce and to get ahead of the curve on turnover, candidate success models and employee engagement.

From Deloitte’s 2017 Global Human Capital Trends Survey. While 71 percent of companies see people analytics as a high priority in their organizations (31 percent rate it very important), progress has been slow. The percentage of companies correlating HR data to business outcomes, performing predictive analytics, and deploying enterprise scorecards barely changed from last year.

Analytics is being applied to a wide range of business challenges: Recruiting remains the No. 1 area of focus, followed by performance measurement, compensation, workforce planning, and retention. We see an explosive growth in the use of organizational network analysis (ONA) and the use of “interaction analytics” (studying employee behavior) to better understand opportunities for business improvement.

Staffing and on-boarding tends to be an area that we think of first when it comes to utilizing Predictive Analytics.  We all want to be able to predict the success of the candidate in the role.  Progressive HR organizations are using interview data, careful parsing of job posting language, and candidate screening data to do just that. New tools that look at social and local hiring data can even help companies identify people who are “likely to look for new jobs” much before they are even approached by competitors.

Turnover is another area that could greatly benefit from this approach.  Capturing and reporting on it is nice, but what about getting ahead of it?  What about using data to be able to predict who is likely to submit their resignation within the next 3 months and conducting extensive stay interviews with those employees? Or being able to offer them an Individualized Development Plan to solidify their engagement?

There are a multitude of opportunities to utilize Predictive Analytics to help us make better decisions across the board in each of our organizations.

Compensation- putting the plan in place

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Last week we talked about establishing your Compensation Strategy and how to determine the competition and your rationale for certain recommendations.  Once you have a thorough well thought out strategy, though, you need to execute.  Careful, well thought out execution is every bit as important as developing your strategy.  Remember, it is likely that you understand compensation better than anyone else in your organization so start at the top.

 

Get your Executive Team Bought in

Keep in mind that executive teams have a lot on their mind and are likely not up to speed with why a compensation strategy is important, so start simple.  https://www.shrm.org/ResourcesAndTools/hr-topics/compensation/Pages/AlignPay.aspx The payroll in a company is by far the largest expenditure and compensation touches all areas like candidate attraction, retention, turnover and satisfaction to some degree.  Pay ranks in the number three spot as to reasons why employees leave positions and the cost to replace that employee is anywhere between 100-200% of their base salary. https://www.appleone.com/Employers/SCALE/2017/EngagementTools/cost-of-turnover-calculator.aspx  Plenty of reason to make sure that compensation is NOT the driving force behind your resignations.

 

Train your Managers to have Compensation Conversations

Once your executive team is bought into your strategy, it’s time to train your managers to talk about compensation. https://hbr.org/2014/04/how-to-discuss-pay-with-your-employees  We have all heard or experienced firsthand the horror stories of employees finding out what their raise is when their paycheck comes out, never having had a conversation with their manager, or the manager walking into a group of employees, handing each a piece of paper with their raise on it and walking out, thus missing a critical opportunity to further enhance the employee’s satisfaction and level of engagement. https://compensation.blr.com/Compensation-news/Compensation/Compensation-Administration/Preparing-for-Compensation-Conversations-with-Empl/  The first step is to listen.  Listen to what the employee has to say, repeat back what you think you have heard.  Share critical information, such as the merit budget pool for the year and the compensation philosophy.  

 

Communicate the Process

Letting the team know up front and reminding them often of who will do what we go a long ways towards preparing for success. http://www.simplehrguide.com/compensation-strategy-key-content.html  Communicate the roles that HR will play-to establish salary grades and structures, to provide compa-ratios, to set the merit pool amount and to weigh in on any recommended market adjustments.  The first line managers will be responsible for recommending salary increase, justifying recommendations for promotions or market adjustments and communicating the approved increases to the individual employees. Your executive team has the responsibility to communicate and support the compensation strategy and philosophy they have approved. Employees, too, play a role.  They have the responsibility to ask questions and ensure that they get a satisfactory answer.  Make sure that they know their manager is their first stop, but if questions remain unanswered that HR’s door is always open.

Do you best to create an environment where compensation is not practiced in a black box, but is implemented in a thoughtful, straight forward way, where everyone understands what it is meant to achieve and feels comfortable offering suggestions to enhance the process.  A compensation strategy, created and implemented well, can enhance many aspects of the organization and the employee experience.