Before you know it, 2019 will be here without so much as a warning, so take the time now to set yourself up to be ready for the coming year. This is the time of year to start thinking about and planning your global compensation strategy going into 2019. Our global rewards experts have compiled this checklist so you can take a step back and evaluate what needs to be accomplished before the year ends so you can position your company for success.
1. Review the labor landscape for the countries you have a presence in.
Do you know what the labor landscape is like for the countries you have a presence in? What is the political climate like? What is the economic environment like? What are the turnover concerns specific to that country? What are the hard-to-find, high-demand jobs in that country? If you do not have a centralized set of data, are you defining what data sources are being used? If you haven’t already, start working on answers to these questions.
2. Compile global compensation data and suggestions from the countries you have a presence in.
Tap into local colleagues in various global markets as they will have on-the-ground information. Do so by setting up time with local colleagues to understand what’s going on in local markets and what their pain points are. Come prepared with questions and an agenda so you can have a fruitful discussion and make the most of the conversation. Among other things, your agenda should include salary increase and salary structure discussions/recommendations as well as getting them the information they need to take their education on the labor landscape to the next level.
3. Update your country watch list by reviewing the economic indicators.
This is the right time to ensure your country watch list is current by relying on various data sources. As a reminder, the data points commonly used to build out a country watch list include: Consumer Price Index (CPI), Gross Domestic Product (GDP), Salary Increase Survey (SIS) projections, unemployment, currency exchange rate, and the geopolitical climate.
4. Review your emergency global compensation policy.
Most companies do not have an emergency global compensation policy in place—but that’s where you can gain an edge over your peers and competitors. This is a good time of year to review whether your company has a policy in place so that, in case an emergency situation is triggered, you have the capability to respond quickly. This becomes especially important when an economic situation gets triggered — for example, if the inflation rate exceeds 10% — because it empowers individual countries in which the company operates to make timely decisions when an emergency situation is underway.
5. Review your global LTI policy
As your company continues to expand internationally, the need for a comprehensive global strategy — which includes a review of long-term incentive (LTI) practices — becomes paramount. Attracting and retaining critical talent, maintaining internal equity across borders, incentivizing high performers, achieving multinational business goals, and managing equity share pools can all play a role in shaping your company’s LTI strategy. Around this time of year, get the market data you need to review the current state of your global LTI policy and make adjustments or changes as needed.
Aon’s experienced compensation team is here to help if your team needs any extra support. Contact us to learn more: https://humancapital.aon.com/about-us/contact-us.