eraged data analytics to undergo a similar shift. Marketing
deploys advanced data analytics to improve the customer experience, and HR functions need to do the same to strengthen
the employee value proposition. This work involves collecting and analyzing data on employee preferences and performance and then using those insights to tailor and optimize
rewards programs. “Data can be a powerful tool,” Brooks
explains. “Through the use of analytics, many companies are
leveraging existing company data to improve the alignment
between employee preferences, compensation and reward offerings, and employee retention and performance.”
How should we redesign our overall compensation structure and performance review approach?
HR leaders are asking consultants for help with fundamental overhauls of their workforce compensation structures as well as with developing innovative performance review approaches. Ten to 15 years ago, HR functions began
creating broader roles and pay bands while decreasing the
number of hierarchical levels in the organizations. Today,
the opposite is occurring. “Many organizations are creating
differentiated career ladders,” explains Sibson Senior Vice
President and Consultant Jason Adwin, who leads his firm’s
performance and rewards practice. An organization that had
10 different categories of job classifications and compensation structures now might have 15 or 20 groupings. “More
organizations are creating additional levels in organizational
hierarchies so that promotions can happen more frequently,”
Adwin notes. “This is something that the millennial generation is generally clamoring for. Job design, job hierarchies,
and compensation levels are becoming more vertical then
they were in the past.” Performance reviews and raises are
also increasing in frequency in many companies (multiple
times each year), notes Brooks, who describes a growing
desire for “compensation agility” among HR functions.
HR leaders also need to much more agility within the
compensation systems they rely on to attract and retain
talent. These compensation systems and practices need to
adapt more effectively to changing external market conditions over the short term while also enabling the organization to respond effectively once those massive workforce
AI-driven disruptions looming on the horizon reach their
industries and companies.
Q&A with KPMG’S M
Employee retention. Tax reform. Pay equity. Enhanc
sition. At a time when talent management represe
human resources (HR) executives are grappling w
pensation and benefits challenges. Matt Campbe
at KPMG’s people & change service, recently shed
these rewards-related challenges while sharing h
helping client companies address them.
Consulting: Describe one compensation and benefits
man resources officers (CHRO) have right now?
Campbell: There are multiple issues currently faci
virtually all industry sectors. These issues reflect a
ployee and disclosure requirements. One of thes
which is an increasingly important challenge. The
asking is whether there is a material difference in
men and women. While federal legislation or reg
there is on-going legislation at the state level requi
if differences exist. While some states are addre
sively than others -- California and New York, for e
requiring companies to assess whether statistica
less emphasis on remediation – for now.
Consulting: What is one area of workforce compensat
Campbell: Companies are increasingly focusing o
ployee capability across the organization. Historica
around specific jobs without a cross-firm compariso
role provides. Many companies are now examining jo
of responsibility, leadership/influence, impact and
these levels are understood, compensation levels a
ganization based on those levels. In effect, workforc
based on how work is completed as opposed to the tr
sation that was tied to a narrow definition of a job.
Consulting: Can you share some aspects of recen
current rewards priority?