The future of work looks different as companies across the globe evaluate their compensation strategies.
As economies are still reeling from the long-term impacts of COVID-19, one fact is evident: the pandemic permanently altered certain elements of conducting business. Companies scrambled to improve their situations, and many faced the realization that their management models were not as effective anymore in the new post-pandemic reality – where employees are working remotely and teams are disconnected.
Out of this revamp a popular strategic performance rating model known as management by objectives has gained prominence. By outlining clear goals and setting action plans with management and employees, the model aims to improve performances by aligning the workplace. Instead of evaluating employees annually with a performance rating, this strategy calls for more consistent, monthly check-ins to recalibrate.
Having cascading company and team goals allows companies to analyze productivity and identify gaps or misalignments quicker. Management by objectives can also make employees feel included, understood, and valued. Most importantly, compensation should be evaluated and adjusted based off this new trend.
Aligned compensation
In January 2021, 32 percent of Canadian employees between the ages 15 to 69 were working from home, compared to just four percent in 2016.* Working remotely physically separates work teams, causing misalignments in strategies, goal settings, and company follow through.
The impact is twofold: managers lack connection with employees and employees have less connection with each other. It has become apparent that these workplace interactions functioned as an organic tool to synergize teams and breakdown silos. Communication has dropped, and people don’t feel the natural synergy that comes from checking in with one’s coworkers.
Management by objectives was designed to remedy the effects of these lost interactions by ensuring cascaded team and individual goals align and trend upwards. To successfully implement this management model, companies need a robust and flexible system in place.
All in one compensation platform
CompTrak is an inclusive platform to streamline compensation management. Offering a single solution that allows businesses to manage all components of their compensation program including management by objectives.
“You’re not in the office anymore, so how do you maintain alignment? By outlining clear objectives, reviewing them frequently, and aligning them with compensation,” says Chris Jackson, CompTrak’s Vice President of Client Development. “CompTrak allows you to keep your team in line with their individual goals, the teams they work within and the company’s common targets that they’re being remunerated for.”
Understanding that all companies are unique, CompTrak’s configurable framework allows businesses to hone in on their specific needs, such as complex long-term incentives, the measurement of diversity and inclusion, salary management, and commissions.
“We cover all aspects of the cycle, bringing intelligence to each part,” Chris adds. “Every pay action can be covered in our software.” Providing flexibility and mobility, CompTrak’s structure simplifies the complex dynamic of keeping a team unified while also caring for the individual.
Working together to hit targets
CompTrak is a comprehensive compensation management platform that allows companies to analyze data and make better decisions based on performance and the market. “To create a connected team and to achieve goals successfully, it should be tied to remuneration.” Chris explains. “Every level of employee needs to be managed appropriately. We need to look at compensation in a less uniform manner – it is long overdue to make remuneration personalized.”
