The HR world has also been hit by the waves of digitalisation, answering the staff’s questions using chatbots or people analytics to create success factors per role.
How to link business strategy with compensation strategy?
During the last decade we have witnessed disruptive forces that constantly change the way businesses behave such as big data, artificial intelligence, IOT, sustainability and diversity. Meanwhile, just few organisations were able to reflect it in their compensation philosophy.
Long-term incentives (LTI) have been proven efficient in aligning employees and shareholders’ interests, finding the right balance that serves the business strategy is crucial in rewarding employees on achieving results. However, it is not common to see organisations apply LTIs across the board.
Organisations that are willing to let go the “mainstream compensation” to develop agile and flexible remuneration solutions that mirror their business strategy will be ahead of the curve in rewarding, retaining and attracting the needed talents to achieve sustainable results.
How is artificial intelligence reshaping the C&B landscape?
Gamification will be playing a critical role in reshaping HR arena not just the compensation but the entire employee lifecycle activities and experience. Lately, we are observing the introduction of advanced technology in HR like AI or People analytics to create for example success factors per role, chatbot to instantly answer staff members’ questions through mobile application, WhatsApp or even intranet.
The ultimate goal is to have tailored HR offerings to each employee taking into account pay and benefits bundles that suit their actual needs. HR should provide an employee-centric culture internally since staff members will always be considered HR’s primary customer.
What can we expect from C&B in the future?
Total remuneration offerings and packages for employees to choose from will be available in the next few years – this will require HR Heads to headhunt talented analytical HR calibres driven by technology and data crunching to pinpoint genuine opportunities to make an impact that matters.
Hatem ABOU-ELENEIN is the Head of Compensation & Benefits at CIB, where he leads a team of professionals in developing competitive pay solutions and provides people with insights to relevant stakeholders across the bank. Before joining CIB, he worked for Hay Group Middle East (currently Korn Ferry) as Consultant and Business Developer where he advised various clients across different industries in the Middle East in delivering HR solutions. He holds a bachelor’s degree in Business Administration and International Trade from Misr International University in Cairo. Hatem is a jazz music fan and currently learns music theory as a guitar player.