The world of business is being disrupted in ways that were unimaginable even a few years ago. Among all the risks that business leaders identified in Aon’s 2019 Global Risk Management Survey, five clearly point to opportunities for rewards and compensation leaders to reimagine their rewards programs.
Risk 1: Failure to Attract and Retain Talent
Prepare your organization to attract, retain, and re-skill the right people as you adapt to constant market changes and customer needs. Think about this: It can cost as much as 200% of an employee’s salary to find a replacement. One difference between thriving and failing organizations will be the extent to which your compensation and rewards programs are designed to keep you competitive.
Risk 2: Increasing Competition
Blurring industry lines and increasing competition from all sides, not just traditional competitors, are forcing organizations to become more innovative and digital-ready. Empower your company to attract and retain the right people by working with a partner to create and execute on a road map for the workforce of the future. Ask yourself: “What do they pay? What do we need to do to ensure our compensation and rewards programs help us attract and retain the talent we need both now and in the future?”
Risk 3: Disruptive Technologies
Artificial intelligence and other disruptive technologies are shaking up the landscape of work as we know it, causing seismic shifts in how to prepare for the workforce of the future. Rewarding key players in this fast-paced digital environment requires a holistic approach to designing compensation and rewards programs.
Risk 4: Inability to Innovate and Meet Customer Needs
How will you drive business growth and transformation through your people? At the heart of innovating and meeting customer needs lies a workforce that stands ready to compete in an increasingly competitive global economy. Put yourself in a position to find and reward workers who are highly adaptable and agile, and equipped to meet current and future business needs.
Risk 5: Pay Inequality
Pay equity has emerged as one of today’s hottest HR and compensation issues, creating the need for increased transparency. Whether your organization is looking to identify risks or audit potential gaps in pay structure, fulfill local or national regulatory requirements, or set a public example of achieving equal pay for equal work, the time to act is now.
Download our whitepaper 3 Biggest Risks Impacting Human Capital to learn more about how reimagining your rewards programs can help you manage these and other risks.