Compensation is a Balancing Action (Not an Act) (Dan Walter's 28 Mar 2011 blog post)

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Posted March 28, 2011 at www.compensationcafe.com


Compensation is a Balancing Action (Not an Act)




Stickman balancing action
Have you ever used one of those workout things called a “Bosu Ball”? A
Bosu Ball is half a workout ball attached to a round plastic platform.
Many people workout standing on the soft, round ball side.  My trainer
turns it upside down and makes me stand on the flat plastic side.
Balancing with the round side on the floor requires concentration and
constant adjustments.  Add some basic weights or movements and the
process makes you stronger, while exhausting you. The trick is making
frequent small adjustments.  If you wait until a large adjustment is
needed, it is probably too late. So why am I telling you about my core
exercises?


I realized the other day that my workouts were also perfect training
for compensation professionals. We often talk about having balanced
compensation programs.  We work to get Total Rewards just right. We are
constantly looking for the perfect mix of cash, STI, LTI, recognition
programs and more. So many of us look at balance like a multisided
scale.  Put just the right amount of weight on each platform and balance
will be achieved.  So long as nothing drastic happens we can focus our
attention elsewhere for a while. However, often a “while” turns into
multiple years.


In fact, compensation balance is more like standing on that ball or
riding a snowboard. The best view balance as an action rather than a
status. Ironically, if people weren’t involved, both the ball and the
snowboard can maintain perfect balance forever.  Once you add a human,
the static nature of the device flies out the window. Compensation
programs are also like this. 


It is fairly easy to balance your compensation program on paper. As
soon as you incorporate managers, employees, fluctuating stock prices
and currencies, changing attitudes and regulations, programs require as
much attention and concentration as a kid barreling down a snowy hill.
The key is to train and practice enough that you learn how to make the
small adjustments that help you avoid the giant adjustments, or crashing
into a tree.


The amazing thing about balance is that as you practice it can become
second nature. Each workout with my trainer was more complex than the
one prior, without being dramatically more difficult.  After a few
months, tasks that I found impossible on the first day required little
effort as my brain constantly made the required small adjustments.


Compensation is a balancing action, not a balancing act. If you read
the Compensation Café blog and similar resources, you are already ahead
of the game. Resources like these are your “Bosu Ball”. Pay attention to
the small adjustments that your Total Rewards need and see your plans
evolve naturally to fit the needs of your company and staff. 


Dan Walter is based in San Francisco, CA and is the President and CEO of Performensation
an independent compensation consulting firm focused on the needs of
companies not in the Fortune 1000. Dan’s unique perspective and
expertise includes equity compensation, executive programs,
performance-based pay and talent management issues, Dan is on the board
of the
National Center for Employee Ownership, helps create ShareComp, a virtual conference addressing equity compensation and founded Equity Compensation Experts
a free networking group with more than 1,100 members. Dan is also in
high demand as dynamic and humorous speaker. Connect with him on
LinkedIn or follow him on Twitter @performensation.



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