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The role of legends in today’s
reward landscape
Peet Kruger
Synntech People Solutions
So what is a legend • Legend can be described as a ground breaker,
discoverer, pioneer, trailblazer, trendsetter, etc.
• Possible definition of a trailblazer: “a person who
blazes a trail for others to follow through
unsettled country or wilderness”
(www.dictionary.com)
• Definition of a pioneer: “one who is first or among
the earliest in any field of inquiry, enterprise, or
progress”. (www.dictionary.com)
Reward Legends
There are many trailblazers that we depend on from
the past and influence our thinking even today.
Michael
Armstrong
Helen
Murlis
Charles
Cogill
John Cole
Elliot
Jacques Edward
Lawler
T.T.
Paterson
Reward Legends…/2
Closer to home the following trailblazers influenced
our thinking and reward practices over the last 15
years:
W@W SA Thought
Leaders
Judge
Merven
King
SARA
Legendary Reward Practices…./3 Legendary and ground breaking reward practices
included:
Intrinsic vs
Extrinsic
Rewards
Cost to
Company
Broad-
banding
Total
Rewards
Approach
Executive
Remuneration
Governance
Performance
Based
Remuneration
Strategic
Value of
Reward
Expatriate
Management
The history of Reward – An
evolutionary journey in SA
• Base salary
delivery
models
• Variable pay
expanded
• Executive
equity plans
Remuneration
• Base salary
administration
• Job
description
and job worth
focus
• Job evaluation
a major focus
Pay
• Base and
variable pay
mix
• Equity plan
shifts
• Incentives to
drive
performance
• Benefit
offering
• Cost to
company
concept
Total Remuneration
• Remuneration
• Fixed
• Variable (STI
& LTI)
• Benefits
• Work-life
• Performance
and recognition
• Development
and career
opportunities
Total Rewards
The legends of today are…….
• Those that can balance science with art in
designing total rewards programmes for their
respective organisations
• Those that understand the strategic, behavioural
and financial impact of total rewards and can
position the organisation appropriately.
• Those that are able to develop integrated reward
solutions that will enable the business to attract,
retain and engage the right skills
The current reward landscape
in SA
If we look at the definition we used in the
beginning for a trailblazer, the current reward
landscape can definitely be described as
“unsettled country or wilderness”
The current reward landscape
in SA – unsettled territory
• Socio-economic environment characterised by:
High unemployment
Educational inefficiencies
The have’s versus the have-not’s
Service-delivery protests
Disillusionment with economic development
Progressive more violent labour unrest
Debates in this “wilderness”
• Huge wage-gap vs demand and supply in
the labour market
• Capitalism vs Socialism
• Culture of “instant gratification” vs long-term
sustainable development
• Quantity vs Quality jobs
• Management vs Employees
• Employers vs Unions
• Unions vs Unrecognised/Unstructured
organisation of workers
Where does this leave us
As Edward Lawler states, “The challenge,
and it is a significant one, is to develop pay
systems which fit with the way organisations,
individuals, and society are changing and to
change the pay systems at the speed of
business.”
What will the Future Reward
Legend look like
?
What will the Future Reward
Legend look like
Those that are passionate about reward and
use it to reunite the various stakeholder
groups in the organisation and influence the
business to stay true to itself through its
commitment to a philosophy (the values and
beliefs) that balances economic and moral
considerations.
Closure So you want to be a Reward Legend……..
• Are you prepared to blaze a trail for others to follow
in the turbulent reward landscape we are currently
in?
• Are you prepared to voice an opinion contrary to
popular held belief?
• Are you courageous enough to push the
boundaries?
• Able to persuade management and EXCO what reasonable pay levels look like?
• Understand and speak the language of business and be recognised as “business” people.
• Raising the organisations game in terms of clear and transparent Remuneration Reporting
• Familiar with the political context of the country and to be fully conversant with the financials of the
organisation
• Supporting Investor Relations in promoting and defending the Reward Policy and achieving favourable
Shareholder votes on the Rem Policy.
• A skillful and honest facilitator of RemCo process and debate on Exec Pay and company Reward Policy
• Contributing to the ongoing debate on the socio-political aspects of Pay - the Pay Gap, Exec pay quantum,
employment vs decent pay
• Creatively personalise total rewards to meet the motivational and engagement needs of the best and brightest
employees
• Global understanding of prevalent reward practices
• Understand all aspects of human resources programs and ensure integration
• A continuing and consistent concentration on training middle managers to be effective leaders and coaches.
• Having superior communications skills will be even more important
• Being very well connected in the Reward and Exec/Non Exec Director community.
• Strategic and operational skills
• Legal/Compliance/Human Resources/Financial/Strategic/Political/Economic understanding of the business
and business environment
• Mentoring more junior reward specialists to build a pipeline of reward skills
• Experience and qualifications in the total reward functional areas
What will the Future Reward Legend look like –
Some feedback from legends themselves
