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Total Rewards Consulting Approach

Freelance Total Rewards takes a consistent four-phase approach to consulting projects for clients.

Consulting Project Approach

Phase I–Understanding Your Needs

Until there is a clear understanding of your needs, no solutions can be determined. We listen and ask questions to unpack your needs, root causes, influences and business context. We will ask questions related to talent objectives. We will ask questions to understand the scope of the request, because you may wish to approach the work in phases, or isolate certain parts to be addressed internally, or at another time. I will ask about stakeholders, risk factors, linkage to other processes (such as performance management, for example), deliverables, timing and budget.

Phase II–Solution Design

Design involves defining the problem the solution criteria, and a suggested solution framework. It is a high-level roadmap that starts with needs and ends with a solution, i.e. a list of deliverables and a process and project plan for creating and implementing them. But it is not the solution, only a plan, a blueprint. Having a blueprint allows the client to approve the development work, which is the most time consuming.

Phase III–Solution Development

The development process flows directly from the Solution Design. There should be no surprises during this stage due to Steps I and II. This is stage at which certain tasks can be completed by in-house client staff or less costly resources, under the guidance of the principal consultant and project team. This phase ends with client approval of the deliverables.

Phase IV–Implementation and Communication

This phase involves installation of the solution. It may include client manager or HR training, communication support, internal presentations or other forms of assistance. Depending on the client’s needs, this phase may be require more or less consulting assistance. Part of project closure is identification of next-priority needs, often areas such as manager training, investment in benchmarking data, development of performance management or any other areas adjacent to the project that could enhance or hinder project success and business outcomes.

All work is done from a total rewards perspective, adhering to the following principles.

Total Rewards Principles

  1. Total rewards includes anything–money, benefits, career opportunity, flexibility, etc.–that acts as a reason to join or remain with an organisation, or to perform as the organisation wishes. Rewards can be tangible or intangible. A person may join an organisation for the tangible rewards such as cash compensation, but may stay (or leave) due to intangible factors such as culture, leadership, development opportunity, etc.
  2. The function of rewards (compensation and benefits) is primarily to attract and retain talent. Motivation can be impacted by rewards practices as well, but is driven mainly by the work itself and good fit in selection of people for a given role.
  3. The right mix of rewards is the mix that best attracts and retains (or mobilises) your talent. For the same overall cost, your rewards mix can be ineffective or highly effective. In fact, you can effectively attract and retain talent at lower cost if you look at the total rewards, including intangibles such as culture, leadership, fair policies, choice, flexibility, training opportunity, meaningful work and having a supportive boss.
  4. Rewards do not motivate higher performance for most people, but they do help retain higher performers. Conversely, liking pay to performance can motivate lower performers to leave, which may be good for your organization.
  5. Performance evaluation and ratings are at worst a necessary evil (as an affirmative defense of selection or pay decisions, under equal pay laws), but at best a powerful management tool to communicate important feedback to employees. The rating itself must be backed up with specific feedback. Giving feedback does not require ratings, but ratings without feedback are simply a pay mechanism. Do not link pay to performance ratings if you are not good at performance management.
  6. Tangible rewards are more important when attracting talent, as you cannot promise a person will be happy with their boss, company culture, recognition, promotional opportunity or other intangibles. Employees will reach their own conclusions concerning intangible rewards after several months with the company.
  7. A total rewards strategy flows from and supports business strategy, people strategy, talent objectives, cost optimization, tax optimization, alignment to employee needs, alignment to candidate needs, competitive positioning and brand alignment.

 

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