Which models?

Paolo Donati

THE HONEST FLAVOR OF HARD WORK…

The definition of “PAY” as a collectivistic item with a “one size fits all” model approach is outdated.

* see: http://www.slideshare.net/PaoloDonati1/office-40074015

Before talking about money we have to go back to the intimate and real meaning of “Salary”: it comes from Latin “Sal (= SALT) – arium (meaning attinence)”, meaning that the soldier's pay was salt or coins given as an allowance for the purchase of salt.

This means that we have to consider the SALARY as something that gives taste to our daily WORK understood as a right & duty* that human beings have with dignity to handle in order to honestly sustain life, family and personal growth.

In other words the Salary is something which is not an easy permanent life annuity: it’s something you have to fight for with real (and hard) work.

The art of compensation: a palette with many colors…

The real art is to bring together the will of the companies and the will of employees…

COMPANY - I WANT RESULTS- I WANT PROFIT- I WANT EFFICIENCY- I WANT TO… SAVE MONEY!

EMPLOYEE- I WANT TO RUN CAREER OPPORTUNITIES, JOB ROTATION, INTL PERSPECTIVE AND HAVE A COMPETITIVE PAY PACKAGE…- IN OTHER WORDS.. I WANT A GREAT PLACE TO WORK!

Not always GLOBAL models and solutions are fitting LOCAL needs: handle with care!

In any case – whatever the continent / region – we can say that today all companies are looking for new and sustainable

compensation packages…

Go to standard or local?

Time… is (real) money!

Today’s salary is not only made of money but also something to be related to FLEX-WELFARE models…

CEO PAY IN EUROTOP 100…See: http://www.towerswatson.com/en/Insights/IC-Types/Survey-Research-Results/2014/07/2014-CEO-pay-in-the-Eurotop-100-insights-similarities-and-differences-across-Europe

Lo locomotiva e la bella addormentata dell’Europa…

CEO’S LIFE IS NOT THAT EASY BUT… IS THIS ALWAYS APPROPRIATE AND SUSTAINABLE?

…LET’S TALK ABOUT EQUITY!

UE gender pay gap: 16,4%

See: http://ec.europa.eu/justice/gender-equality/files/gender_pay_gap/140319_gpg_en.pdf

From “one size fits all” to segmentation…

Age clustering

Marital stutus

clustering

Gender clustering

Business impact

clustering

ACTIONS

KPI

GOALS

VISION

Performance

Salary tools

Non Salary tools!

To hit the target you have to communicate not only the value but also the content of your comp&ben packages!

Gross salary, bonus systems (MBO)…

Job rotation, training & education, welfare plans, work-life balance…

ACTIONS

KPI

GOALS

VISION

Performance

Potential

All the boastful actions made “on the field” by employees derive from a good communication process that each boss has to run.

Important: the best performances are not only figures-driven but also “heart” made ( = work on motivation, feedback etc.).

Stick to Salary as a TOOL (and not the ultimate goal) of HR management!

PAY-ing attention to people sometimes is more effective than sophisticated comp&ben packages…

Looking for new comp&ben packages?

And sustainable!

KEEP IT SIMPLE!