One Size Doesnt Fit All

I have been in HR field for around 10 years, and i feel that there is still a lot of things i need to learn. One thing i learn from my compensation and benefit experience is the philosophy of "One Size Doesnt Fit All".

I used to not believe in it, i used to think that the company can design something to standardize compensation and benefit. However, with the years i have, i should knock that thinking down. Things changes, so does HR stuff, human needs and designing compensation.

1. THE MILLENIUM
In the millenium era, information has flown like never before, easier, faster. Trends move fast and the bar has been set high in many aspects. Including HR.

Maximizing the value of company's expenses on human has becoming the issue. Can HR, in this case compensation design address that? I believe there is no company with unlimited HR budget? (if you happen to know one, please do PING me *grin*)

One way to maximizing company expense to hit the right spot, and the right target to drive right behavior is by "segmentation" or "flexibility". Whether the company wanted to segment its compensation design based on certain criteria (age, gender, function, geography, etc.) or to make the design as flexible as allowed to cater all that. Easy to say, challanging to do :)

2. THE DEMAND
In my journey, the demand has become higher and higher to HR. Started with Dave Ulrich strategic partner concept, HR has been plotted to speak in the same language with the business.

Human Capital concept where addressing human and their competency as part of company's asset, meaning there is a value on every single individual starts to drive HR towards advance direction.

Company not only expecting loyalty, they expect engagement. In my understanding, engage employee is those whose both head and heart work for the company. Its another dream to catch.

Employee demand to HR, not only tp provide administrative function, but also function to enable professional and personal growth, career, and talent management.

Its a lot to chew... But lets bite from the easiest spot, i believe it is not impossible.

3. FLEXIBLE BENEFIT
One alternative to address those area and nowadays has become more and more popular is flexible benefit. I do believe its a good solution to address budget limitation and individualizing employee needs. Empowiring employee at the same time to think and decide their own compensation package and helping HR to design it. Its a preety sweet solution.

Tho as always, easier said than done. But this is one of the solution to address todays uniqueness of the compensation world.

Being current, updated, making necessary changes fast enough in the right place is crucial to stay competitive and to be able to address business needs. HR isnt function properly until it could provide direct impact to business i think. And that alone needs a big shift from paradigm, mindset, design, culture from HR, business and employee. Stay current... Speak for the business :)