Sunday, June 30, 2013

Aon Hewitt Total Rewards Framework

The Aon Hewitt model and approach believes in considering Total Rewards as a business tool and very much linked to overall business objectives!
Reward as understood is a very complex mechanism and some efforts of correcting the base pay and titling in a hurry by many MNCs in India have done a bigger crime by trying to correct it by market adjustments without looking at the talent map, complexity and expectations out of role and mapping it against the benchmark. Titles in India are a big misnomer and hardly any survey on compensation ever probes and captures and calibrates the tangible outcome based bench marking!

If we dive deep, we will find that the key factors of Education, Experience and Quality of Education, Quality and relevance of experience and education are not calculated granular!
A diploma holder technical manager gets the salary benchmarked for the top T-school manager with top quality experience in a challenging and break-through innovation environment with highly skilled and qualified managers, leaders and colleagues versus a manager who worked in less challenging environment where his job was maintenance and low key in complexity and delivery excellence by virtue of being built in a 6 sigma environment for a demanding client versus a less demanding buyer!

Technical competence shall be calculated and calibrated against the quality of experience versus the best quality benchmarked experience that could be thought of and experienced. Unfortunately, salary surveys do not take deep dive into the "QUALITY OF EXPERIENCE AND EXPERTISE" and "COMPLEXITY OF ENVIRONMENT", stress levels of CUSTOMER EXPECTATIONS" and "CUT-THROAT COMPETITION" hurled by fierce competitor. Salary surveys also do not categorize benchmarked COMPETING companies based on their quality of products and services, levels of expectations of customers, quality of colleagues and leadership, quality of work set-up and environment, Expectations of Managers and benchmarked quality and other product or service excellence programmes that competing companies may be running. I shall not pay the same salary by broadly comparing titles and generic role comparison. Have a complexity matrix comparison. 

No comments:

Post a Comment