Scenario-Based Rewards Management

Abstract

The turbulent environment of the last two decades has made it difficult to manage employee rewards well. When revenues vary while compensation costs remain fixed it impacts profitability in private sector firms and makes it difficult for public sector entities to remain within budgets. Organizations need to use scenario based planning to develop robust rewards strategies that will work reasonably well in a variety of possible futures. Current strategies and programs should be evaluated to ensure they are sustainable. Alternative approaches to rewarding employees that make rewards costs more variable enables them to be better aligned with revenues.