Recently I made an offhand comment to a colleague that I can look at a company’s compensation plans and tell them about their organizational culture and what they really value. He asked me to explain further, so I offered a few examples. While I’ve been a compensation consultant for over 20 years, I believe my real talent is as a Corporate Cultural Archeologist. Let’s review some sample evidence.
The artifacts of an organization’s culture include several compensation components–job descriptions, salary structures, compensation policy and procedures, and incentive plans. Each offer a glimpse of how the role of the individual is valued in that culture
Job descriptions, if very brief and/or non-existent, very often indicates a new tribe and culture with evolving roles because survival is their primary goal. Everyone inherently knows their performance is essential to survival. Pay is individualized and less formal. There is often heightened energy and employees are inspired to do what needs doing, sharing responsibility to the group. (Think start-ups, energetically entrepreneurial companies, or perhaps a young solar company.)
If I find highly detailed job descriptions, this culture is generally an older tribe, with many rules, a structured hierarchy and chain of command. There are ceremonies, artifacts and traditions woven tightly into the daily culture. I also find when salary structures are complex, they tend to reward (and seem to value most) the senior executives or leaders, while the lowest levels receive far less pay regardless of their true contributions to the success of the company. (Think larger, more bureaucratic companies with their seniority recognition gifts, holiday parties, and multi-layered approvals. )
I think you get the idea…..how a company chooses to describe the roles and pay its employees tends to be reflective of its values and the culture it has created. What do your compensation programs say about your company? If you’re looking for someone to help decipher those clues and what they mean to your tribal success, let me know.
