Throwing compensation structure out the window

I’m going to contradict myself (again). I seem to do this a lot, outlining a way to be process oriented by designing a traditional talent management program.  We’ve done this over the last couple of weeks by describing how to do job analysis, job descriptions and design a compensation plan. 

But the key to knowing how to design any talent management program is to know yourself, or rather know your company. For mid to large companies, having job descriptions and a wage structure to define how you compensate people is more than likely completely necessary. It keeps things consistent, fair and easier to administer. 

However, in a world where jobs are constantly changing and therefore the knowledge, skills and abilities necessary to define jobs are also constantly changing, defining a job based on hard and fast definitions and then trying to recruit and retain employees based on these hard a fasts may be a tremendous challenge.

Another approach

Instead of defining a job and recruiting to that description, find the superstars, those who know how to constantly learn and adapt in a fast-paced world, and hire them, then define the job around them. Pay them what they demand (the superstars know how much they are worth) and then temper their demands with a structure that incentivizes results your company needs them to achieve. 

Notice this doesn’t mean ever defining the job, but it does mean that you may do it after you make the hire. We’re pretty adamant about defining the job through the behaviors you want people to exhibit and the results you want them to achieve in order to measure and reward performance. 

We’re in the process as a small company of doing this now. A compensation structure is not what we need to recruit and retain people at this time. What we need is a superstar or two that understands the core of what we do (career development and talent management) and has experience in it, reflects our company values, and is motivated by achieving the results we need achieved.

One day we may need a defined compensation structure, but right now it isn’t what we need, so we aren’t going to try to cram ourselves into a traditional process that may inhibit our ability to recruit and retain talent. Your company, on the other hand, may need to structure in order to recruit and retain talent. Realizing the outcome we all want is great talent that stays doesn’t mean we all get to that end result the same way.  

What processes (or unprocesses) do you have in place to make sure you get the talent you need?