“The Fourth Industrial Revolution is about the acceleration of innovation and the velocity of disruption, and these two factors are creating disruption and along with this, new opportunities for business,” says Nicol Mullins, Chartered Reward Specialist and Executive Committee Member at the South African Reward Association (SARA). He observes that Covid-19 has served as a catalyst for the adoption of Fourth Industrial Revolution (4IR) technologies, along with forcing the development of new business models or the adaptation of existing ones. This trend is also redefining the approach employers take to remuneration and reward. A New Perspective on Reward “4IR certainly presents risks, but risks are also opportunities for workers to upskill and position themselves to gain the most from this new era,” says Mullins. This is especially true of the massive global move towards the virtual workplace, with many employees now working exclusively from home and connecting with their organisations, teams and managers digitally. Most organisations have pivoted rapidly to this new normal while others have not been as quick to transition. Either way, businesses are reviewing their strategic outlook based on a new set of challenges they face and resources now available to them due to the automation of repetitive, routine processes. “Reward strategies must likewise be adapted to complement this new paradigm and align with reimagined business strategies to contribute the highest value to their achievement,” says Mullins. Expanded Talent Possibilities An important effect of digitalisation is that talent sourcing and recruitment in a virtual world is not restricted by national borders. Or to humans. Instead, 4IR is blurring the boundaries between the physical, digital and biological, allowing organisations to draw from a worldwide pool of talent and specialisation. Resources no longer need to be situated locally but can contribute to corporate outcomes from anywhere on the planet. Because of this, reward strategies are shifting from an internal-only focus to include external parties as well. While companies have long followed a build, borrow or buy approach to talent planning and acquisition, borrowing is coming to the fore. “Organisations can more readily direct work to underutilised personnel without being constrained by departmental or divisional boundaries, resulting in greater efficiency and productivity,” says Mullins. Similarly, freelancers can be more seamlessly integrated into business processes to tackle activities that require professional attention, but not so frequently as to justify permanent staff. Better Reward Strategies As they embrace virtual workspaces, a more fluid talent mix and flexible work assignments, organisations must also determine how rewards should be structured for both internal and external staff requirements. For short term assignments, freelancers may be considered vendors who bill clients for their work and manage their own benefits and work-life balance. For long term contractors, especially those offering scarce or critical skills, a viable reward policy should be investigated. Employers may also consider hiring out specialist staff to other organisations, earning extra income when their workload is low. Embracing a sharing economy. How to design and implement remuneration and reward programmes appropriate to these dynamics falls squarely within the purview of the reward specialist. “Now is the ideal time for organisations to engage closely with their reward practitioners, whether inhouse or outsourced, and involve them more deeply in workforce planning and strategy,” says Mullins. ENDS MEDIA CONTACT: Idéle Prinsloo, 082 573 9219, [email protected], www.atthatpoint.co.za For more information on SARA please visit: Website: www.sara.co.za Twitter: @SA_reward LinkedIn: South African Reward Association Facebook: SARA – South African Reward Association
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Technology plays a vital role in the evolution of employee reward and incentive programmes, ensuring that the processes are supported and systems seamlessly managed so as to effectively deliver on the employee value proposition (EVP). Technology is the enabler of almost all innovative processes and business models and must not be defined narrowly as an ingredient or component, but rather as a tool which can reveal what is possible and support what is already in play.
“Reward strategy must be approached holistically,” explains Peet Kruger, Exco member, South African Reward Association (SARA). “It is essential that technology be integrated into the reward value chain and be seen as an enabler. It cannot drive strategy, but it plays a powerful role in the implementation of strategy.” Understanding the role of technology “The way in which a business uses technology to support and integrate its delivery of “reward products” to employees can play a critical role in the organisation being seen as an employer of choice,” says Kruger. Organisations can harness technology’s omnipresence to integrate reward solutions into all layers of the business. This will then allow for richer employee engagement and support the delivery of reward and remuneration solutions by aligning them more closely with the people - especially those that grew up with technology -and overarching strategic goals of the organisation. In the value chain, reward is assessed along specific lines to ensure it supports business strategy. It has to take many factors into consideration which include: the skills required, the reward needed to attract these skills, the payment structures, the non-financial rewards which have to be blended into the overall package and the steps which both employee and organisation have to take in order to ensure these are done correctly and within specific parameters. Technology: a valuable solution Not only does technology help to streamline processes and enhance reward management structures, it enables us to quantify and package the reward value proposition in such a way that it is simple to understand and appealing to the end user. Employees can see how they contribute to overall organisational success, get a clearer picture of how their rewards are structured and see how much the company is investing in them from a total reward perspective. “There is a growing shift towards the Total Reward Statement which consolidates all the data held within the technology systems and uses this to support and improve reward management throughout the business,” concludes Kruger. “It is a visual representation of the total reward investment in each employee and is a step up from the traditional payslip which mainly focuses on the financial breakdown of the salary package of the employee. This educates, sensitises and create an appreciation for the total reward value proposition enjoyed by employees and contributes to improved engagement and retention of employees”. ENDS MEDIA CONTACT: Cathlen Fourie, 012 644 2833, [email protected], www.atthatpoint.co.za For more information on SARA please visit: Website: www.sara.co.za Twitter: @SA_reward LinkedIn: South African Reward Association Facebook: SARA – South African Reward Association |
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October 2024
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