What is driving innovative compensation models, and what does the future look like?
SP Data, Digitization, and Demographics – are the 3Ds driving innovation with new and more agile compensation models. Organisations have moved from company-wide standard approaches to customization and are now experimenting with personalization.
Data Analytics and technology tools are being leveraged to understand the intersection of business metrics, skills in demand & employee’s life-stage and lifestyle needs. Target audience sizes are getting smaller and the “n=1” stage of customization isn’t far away.
As this happens, organisations would be challenged to build principles of equity, fair pay & justice in their rewards philosophy.
Innovation is also emerging from organisations employing gig workforce, as they leverage technology to build ‘pay-per-activity’ compensation models, and also have high incentives and penalties built in. At the same time, community & social activism is...
