What with all the ongoing business tumult, much of it borne of the pandemic, this is not the time to have a stagnant executive rewards strategy. These days, unless you’re determining your executive reward drivers and aligning pay and performance with purpose, you’re already behind. The good news is that these uncertain times give you a chance to reshape your strategy to positively affect your bottom line.
The Issue
The decisions you make about executive pay can leave a lasting mark on your enterprise. When it’s handled properly and with care, such compensation connects employees’ output to the organization’s strategy and produces improved performance. But when things go left, it’s not pretty. You could lose key people, for example, see a drop in motivation, and produce anemic shareholder returns.
You do need to get compensation right, even if you need help to pull it off. More on that soon.
Broader Executive Reward Drivers
Traditionally, executive rewards have always been tied to financial and operational results. But more than ever, there are calls from all corners to broaden executive compensation to include rewards for societal initiatives and efforts that bolster environmental, social, and corporate governance. What’s more, there’s a push for leaders to see things more from a stakeholder’s perspective than that of a stockholder.
What you want to do is fold all these elements into your exec compensation strategy. Why? To help craft an agile rewards infrastructure. Not only will you be able to quickly pivot during times of change, but you’ll be better able to woo, motivate, and retain top talent that can perform well during unstable times.
Mercer’s Role
Mercer is an executive compensation consultant that senior managers enlist to provide expertise in executive and director pay and benefits, and in linking pay to performance. Mercer also specializes in corporate governance — the system by which enterprises are directed and controlled.
How Mercer Can Help
Mercer has expert compensation consultants and a bomb database it can use to help you develop and put in place programs that will enhance your ability to lure, retain and motivate people. That’s the name of the game, isn’t it?
The firm also knows its stuff when it comes to lining up pay with your company’s strategies, considering what the competition is paying talent. In addition, Mercer can help you realize ownership transaction values and remain compliant with all things legislative and regulatory, as well as with shareholder requirements.
Last but not least, Mercer seeks to impart the transparency and flexibility needed for bespoke, purpose-driven rewards.
The Way Mercer Goes About It
Sure, Mercer’s consultants have the data, but they also have loads of know-how and experience. That means that they’re wise enough to bring in the perspectives of employees, but also shareholders and board members and the like, plus those from outside concerns. They’re global reach is more than 130 countries, so they’ll get to you.
About that global data. The sets are huge. They’re a major feature. Then there’s access to Mercer’s other resources including regulatory, legal, and accounting research, corporate governance, and shareholder relations. Oh, and its executive benefits consulting group can help guide and advise you.
Now that you know how important determining your executive reward drivers is to your organization and, ultimately, society, you can begin duly linking goals to financial rewards. Holding leaders to account for their output has also been enhanced to include, say, diversity, equity, and inclusion.
Mercer can assist you with all this — plus executive compensation and benefits — to ultimately help you attract, motivate, and retain exec talent so that you can flourish during disruption.
