PART 2: Let's get to those skills

Given the opportunity for reward practitioners to move between ownership models, scale, structure, and sector, I am focused here on skills applicable to all leaders working in the area of Performance and Reward, whatever the organisational context. In doing so I acknowledge you may need more of one skill in “Environment A” but your career is likely to encompass Environments B and C too, and the Environment is not the sole determinant of the skills that will benefit you and your career.

I use the word “skills” to distinguish from an individual possessing knowledge and understanding concepts, or referring to case studies. You need to be able to ?use what you know in a pro-active, advisory, and effective way with the purpose of delivering on your remit and raising organisational performance.

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For those short on time then here is summary of the skills you need:

• Strategic understanding of global forces and their impact on your business.
• Thought leadership and the building of a shared understanding within the business.
• Creativity in producing innovative solutions and leading the conversation.
• Confidence and courage to balance conflicting interests and challenge where necessary.
• Understanding that what you do must improve organisational performance.
• Lead the conversation and be a thought leader; own your space and its impact.
• Focus on becoming a performance specialist and business leader, not a mechanic.

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For those with more time, I will start by categorising Reward Skills into three distinct areas:

1.????? Above the line?– “strategic skills”

2.????? Below the line?– “transactional skills”

3.????? Interpersonal?– “relationship skills”

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1. Above the line?– “strategic skills”

• Commercial Acumen

Do you understand your organisation’s business model? How does it make money in a sustainable way? How can it make more money?

Can you articulate your organisation’s performance model? Is it recognised as existing, understood and in positive service of the business model?

What are your organisational KPI’s and are they the right ones for what the organisation seeks to achieve?

Can you take a step back to first principles and determine what is right for your organisation and its distinct circumstances and challenges (external and internal)?

• Reward Strategy

Are you able to evidence how the reward strategy is linked and in support of the organisation’s business and talent strategy?

Are you able to articulate how the reward strategy sustains and improves organisational performance?

• Remuneration Committee/ Compensation Committee/ Reward Committee Effectiveness

Are you able to create and lead the?right balance between compliance and performance?

Are you able to brief the “Committee” and ensure the “RemCo Chair” and other members are informed about the increasing range of issues pertinent to their decision making?

Are you able to identify and present the right insight, data, and evidence in support of effective, justifiable (and defendable) decision making?

Can you identify and assess reward risks? (see below)

• ?LTIP Effectiveness

Do you have a?detailed enough understanding of (individual) longer-term performance models to create a plan that is in support of raising organisational performance?

Can you find ways to be creative whilst satisfying the requirements of compliance and stakeholder priorities and attention?

Can you identify and select the right external partners to genuinely partner with you on achieving intended outcomes?

Do you have a full awareness of potential unintended consequences?

Are you able to fully articulate the behaviours and outcomes you are looking to encourage?

• Reward Risk

Have you got good sight and understanding of what could go wrong - and how to mitigate its effects?

Are you aware of external factors with a sufficient and informing enough understanding of geopolitical and economic influences on your organisation and your customers/clients?

Can you identify and assess sources of the insight, data, and evidence you need?

• Setting ‘standards’ for global reward community

Are you creating and delivering solutions and outcomes that are viewed as benchmark in terms of positive impact on organisational performance?

Are you prepared to be creative and brave in providing the reward solutions that best serve the needs of your particular organisation and stakeholders?

• Seeing linkages and opportunities

Are you able to identify and exploit to the benefit of your organisation opportunities that you may identify because of your deep understanding of the organisation?

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?2. Below the line?– “transactional skills”

Being a leader in Performance and Reward can be as much about doing and delivering as it is about strategy and design, certainly in a low resourced team.

You should consider your current skills and experience against the following (non-exhaustive) list.

• Can you tell a story with data, turning data into insights?
• Do you have a strong understanding of governance / compliance / annual reporting (including pay transparency and pay ratios) - are you keeping up to date?
• Do you understand appropriate benchmarking beyond just gathering the data?
• Are you confident with employment contracts (including severance terms?)
• Are you able to contribute to the creation of global mobility programmes?
• Can you deliver a job evaluation process whilst acknowledging any limitations?
• Are you confident in designing and managing an Annual Incentive Plan?
• Are you confident in Share Plan management processes?
• Can you understand and exploit technology?
• Can you lead on the why, when, and how of Salary Review processes?
• Do you understand the mechanics and requirements of corporate processes e.g. M&A?
• Are you confident in your knowledge of the process and tax compliance issues of payroll?

You may have colleagues and team members who have delegated responsibility and accountability for these areas, but you need to have your own skill and confidence across the breadth of your team’s activity. You also have a role in mentoring and developing your team and other colleagues.

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3. Interpersonal?– “interaction skills”

• Influencing, questioning, and challenging?of colleagues and fellow leaders

?Flexible communication skills, likeability, curiosity, and empathy are a great asset.

• Leading, mentoring, and inspiring your team

Interest in supporting your team to be a success. Ensuring open lines of communication and seeking support where needed to ensure their ongoing learning and development as experts and practitioners.

• Customer insight

?Interest in and understanding of your organisation’s customer base is critical to the role and your interactions with other leaders in the business.

• Project management

?Effective management and leadership of internal and external talent across different areas of expertise is increasingly important.

• Active listening

You can know more about your organisation (talent, operations, systems) than any other person in the business.

• Gravitas

Presence and authority inside and outside of your organisation is critical and achievable in a way that best suits your own style of building confidence and trust in those you interact with.

• Conceptual awareness

Comfort with, and ability to interrogate, the latest ideas and concepts is invaluable.

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My advice to those wanting to be leaders in Performance and Reward, is to seek out the opportunities to develop these skills through delivery of your current role, or in a move to a new organisation.

If you want to be a FTSE 100 Leader of Performance and Reward then use common sense with career decisions to ensure you’re visible and in a position to be considered for those roles, but don’t think you need be in a FTSE 100 environment for your entire career; ?you may never get the accountability and opportunity to grow and develop the skills, confidence and leadership skill you’ll need to be considered a viable option when the opportunity arises.

Whatever your environment, focus on becoming a performance specialist and business leader, one that keeps some attention on the world beyond your organisation.

#reward #performance #skills