I have heard many people say they can’t wait until 2020 ends, and I agree. The COVID-19 pandemic’s effect across the globe, increased social unrest, and a contested presidential election in the US leave us weary, but with hope for positive change next year. I do believe that there have been a few silver linings in this difficult year.
Specifically, I am encouraged by employers’ adoption of work at home policies, restructuring their reward systems to recognize the importance of the safety and health of their workforces, and the increased attention to ESG (Environmental, Social and Governance) issues, particularly with respect to diversity and inclusion, and hopefully the future unity of our divided country. 2020 has provided us with an opportunity to learn and adapt during a difficult year.The POE Group, like many firms, saw a downturn in business during the second and third quarters of this year, but I am happy to say that new business has increased significantly since October.
We have some interesting projects underway, including the design of a phantom stock plan for a Brazilian company, a board of director assessment for a publicly traded firm, the design of a compensation plan for a family owned business, and a compensation plan update for an industry association.
Additionally, we have noted increased interest from private companies in ensuring that their executive pay plans align owner interests with pay and retention of key talent. We are grateful for the opportunity to be of service to our new and existing clients.The new year presents an opportunity for companies to ensure that their reward systems are aligned with the changing nature of work and possible changes to their business strategies resulting from a myriad of external factors. We have written a number of articles that provide our thoughts on the pandemic’s impact on reward systems; feel free to check them out on our blog (https://www.poegroup.com/compensation-blog).
We are always happy to discuss compensation related topics with companies at no charge, whether they are current clients or not. As ‘comp geeks’ we never tire of the topic! We believe that the significant changes to businesses this year will present the opportunity for companies to enhance the link between pay and performance in 2021, especially through variable compensation programs. The importance of pay system transparency will also be a focus for firms, especially to ensure that they are maximizing the perceived benefit of their reward systems and reinforcing pay equity.
Wishing you all the best for the holidays and next year,
Joe Kager
Managing Consultant