Posted 32 days ago ago by Agata
As markets across the globe experience economic crises and volatility, it has never been as important to align your total remuneration and global mobility data.
Drive reward efficiency in complex times
With high inflation eroding real incomes and companies battling to recruit and retain talent, employers need joined-up information to reward employees in a global market.
Organizations also face higher costs and economic uncertainty, putting pressure on budgets in a drive for greater efficiency. The pandemic, the crisis in Ukraine and the global political unrest have exacerbated these trends. Many employees are now working remotely, prompting companies to assemble virtual working policies and creating challenges linked to the cost of living and tax.
The world has been turned upside down, and no market is the same as it was five years ago. To make sense of this complex picture, you need data that is consistent, easy to use and flexible in order to strike the right balance when rewarding your people.
Get a clearer picture of pay and mobility data
You can get a clearer view of how to reward your employees by choosing a single provider for your compensation and benefits (C&B) data and global mobility data.
How the rewards and mobility functions interact varies from company to company — historically, they often used different vendors. Successful multinational organizations, however, realize that sourcing data for C&B and mobility from one provider offers benefits on many levels.
Connecting the dots
Dealing with a single vendor can enable conversations between the functions that may not be happening now. These discussions are all the more important when conditions differ across markets. Here’s how:
- A single provider can make connections and spot opportunities for collaboration between the functions — for example, an account manager may take part in a conversation about C&B and suggest how mobility can contribute.
- The more time an account manager spends on understanding your business, the greater awareness they have of the company’s ambitions, culture and history, thereby leading to better outcomes.
- When C&B and mobility are one team — as they often are — it makes sense for their shared view of the rewards program to be communicated to one provider.
Saving you time and money
There are also a number of practical advantages linked to budgets and processes:
- Reduced costs as a result of bulk purchases from one provider
- More streamlined contract negotiations and alignment with procurement teams
- Technology compliance checks carried out on the spot during negotiation
- Once you understand a provider’s data research and terminology, it is easy to expand the contract to more data types instead of sourcing elsewhere.
- Familiarity with the technology that accesses your data gives you a better user experience and enables you to access and use the information quickly.
Are you missing out on vital insight?
Just as benefits flow from connecting C&B and mobility with one provider, there are risks and weaknesses attached to continuing with fragmented support. This is particularly true today, as the mobility function has vital insight into the broader HR strategy.
Drawbacks to sticking with separate providers for total rewards data and global mobility data include:
- Potentially conflicting data resulting from differing methodologies — for example, between general remuneration strategy and international assignment packages
- Less connection and fewer conversations within your team or with suppliers — leading to poorer understanding of the challenges you face and potential solutions
- Duplication of training, workshops and virtual sessions to learn about different providers’ services and terminology — wasting time and money
- Use of different measures for inflation among providers — making calculations difficult at a time when rising prices are having a significant impact on pay packages
Next steps to aligning pay and mobility data
Employers seem to be increasingly aware of how aligning C&B with mobility can help meet these challenges. It’s not an all-or-nothing decision — many companies prefer to try certain additional solutions to test the waters.
Here are some factors to consider if you are thinking about switching to a single provider for your employee remuneration and global mobility data:
1. How much do you spend across multiple sources? There may be scope to reduce this expense with one provider.
2. Does your business trust all vendors equally or do you have a preferred provider that could cover both total rewards and mobility?
3. What is your relationship with your vendor? Could you achieve more together if the supplier was more fully integrated into your organization?
You can always get in touch with us to discuss how we can help.
Mercer offers a range of products and services that can streamline and link up your remuneration and mobility functions. These include:
Get in touch today to learn more!