Step 1 of the E.A.R.T.H. methodology: EVALUATE the current situation
1 APRIL 2021
In response to your requests, this week and for the next few weeks I’ll be sharing with you short animated videos on each step of my proprietary E.A.R.T.H.® (Evaluate, Ascertain, Realise, Tell and Help) methodology to design and implement a Responsible Reward strategy in your firm.
The first step is to EVALUATE the current situation in your organisation. This is the diagnostic phase.
WHY is Responsible Reward on your radar?
You may be under pressure from:
• your customers
• your investors
• the regulators: new regulations have come into play in the financial services sector requesting a link between ESG risks and remuneration policies
• your employees.
How are you collating their views on your reward and sustainability strategies?
WHEN is the right time?
Given the global context of a health crisis, climate change challenges and social tensions, the time to make changes to your HR offering is NOW. As we emerge from the pandemic, get yourselves ready to seize new business opportunities that will attract fresh talent. These potential new recruits will themselves want to work with businesses that have a strong sustainability agenda. So stay ahead of the competition and don’t delay!
WHO to involve in your Responsible Reward project
• You’ll be working closely with your board and, specifically, your remuneration committee.
• Choose a project sponsor: someone senior and credible in your firm who will be the ‘face’ of the project.
• Set up a cross-functional working group. Responsible Reward involves different departments: HR, sustainability, investor relations, legal, finance, risk, compliance, among others.
• Identify someone in your team as the project manager. I fulfil this role when clients do not have the required in-house skills, or the team does not have the bandwidth to accommodate yet another project.
WHERE to start on this project
• Make an inventory of everything you currently offer your employees: pay, benefits, pension, career framework, learning opportunities.
• Do you have a sustainability agenda? What are you trying to achieve and by when?
• How and how frequently do you communicate about reward and sustainability with your internal and external stakeholders?
Watch the EVALUATE video