Companies need a more comprehensive approach to reducing workforce costs without impairing workforce quality. To do this effectively, a company needs a better understanding of the different roles within its workforce and needs to conduct what we call strategic role assessment, or SRA.
The purpose of SRA is to identify strategic talent—individuals who are top performers relative to their peers and who perform roles that directly support an organization’s strategic goals. An assessment of the entire workforce, function by function and business area by business area, can be conducted, plotting people according to two spectrums: performance (from exceptional to low); and value (from mission-critical to nonessential).
With the SRA approach, roles can be clearly segmented and reward decisions can then be made on a transparent and equitable basis, each job being paid according to its strategic value to the organization and market competitiveness. Base pay and total cash compensation levels can be set appropriately and then checked against local-market benchmark data.
The ultimate result of a strategic role assessment is a powerful compensation strategy that is tailored to the organization and thus difficult for its competitors to replicate.
Source: The New Talent Equation
Original Publication: Accenture Outlook Journal
Subject: Management
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