May - 2015 - issue > CXO INSIGHT
Fixing Your Compensation Program: Is Yours a Socialist Program in a Capitalist Economy?
Srinivasa Ogireddy
Chief Cloud Officer and Senior VP of Engineering and Operations-Saba Software
There are many reasons for this: outdated strategies, complex processes, and reliance on the wrong technology-namely, the spreadsheet. Even the best-intended programs that attempt to "be fair" to the broader employee base miss the mark, when the impact of "peanut butter" spreading of a compensation budget gets diluted by distributing itevenly to everyone. Even those that try to create formulas to better incent higher performers tend to be too slow to get funds to the right people before they get a foot out the door.
The biggest challenge: visibility. Even in smaller organizations, companies lose track of the details that attest to the performance and the potential of each of their people. And, sadly, there is precious little to track performance beyond the job description, like the knowledge sharing and connections someone makes in your organization that create better innovation through collaboration.
This is a problem that has been plaguing organizations for ages. And with the unemployment rate in the U.S. alone at its lowest since 1977, and more than 36 percent of global employees looking for their next job, it's a problem with much higher stakes. So how do we fix this? How do we make sure that businesses of any size can get a true picture of each employee's individual achievements, potential impacts and motivation to prescribe a personalized, competitive and appropriate wage increase?
Predictive and Prescriptive Compensation Technology
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