HR REWARD AND BENEFITS
Generation Y would now perhaps choose Richard Baker/Robert Half International Executive Search
to take work/life balance benefits before bonuses
questions as to whether their employer’s reward is creating the right behaviours and outcomes from staff. “The key for the HR director is the integration. HR
directors need to make sure reward is working in harmony with other strategies, such as talent management, and that reward is aligned with the talent needs of a business. In short, the HR director wouldn’t discuss discrete elements of reward,
but needs to understand the entire total reward package. Taking reward cost out in a way that will have minimal effect on the business is the conversation HRDs should be raising up a level.” But Angela Wright, a senior lecturer in HR management at
Westminster Business School, admits some areas of reward have been “dragged from HR”. She explains some HR directors have moved into the role
through a performance-management career path and have shied away from reward, giving more decision-making power to finance departments. But she is quick to add that HR has something unique to offer to the board when debating reward strategy. “A lot of value is given to reward, but not a lot of money,”
she says. “HR directors’ task is to create as much perceived value among employees, but to do this they need to have a handle on the whole package of rewards – and the forces at play in it. “HR directors need to have analytical skills to be able to
respond to a financial argument and ask searching questions – as well as the intuition on reading how reward is perceived in the organisation. This skill can’t be underplayed.” John Harding, financial director at consultancy Jelf Group,
believes the final decisions about bonuses, compensation and reward strategy should lie with the finance director in businesses and ideally the CEO, but there is a role for HR directors to play in effecting change. “For me, the role of the HR director is around the branding
of reward – but they can’t expect to be invited to remuneration committee meetings if they are not sure of the worth of the pension and benefits. HR needs to be able to bring something to the table in an advisory capacity. HR needs to come up with ways to effectively cut costs, but also generate more value to the business. “As the FD, I have a say on pay and reward and I will look
to HR to give me influencing factors – I won’t always listen, but it depends on how strong an argument they can put forward.” What the experts agree on, however, is that the way reward is administered and considered is changing in private
6 HR Supplement September 2012
hrmagazine.co.uk
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