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Although your organization is likely to have a dominant cultural style, it’s unlikely that style holds up in all areas of the business or, at least, that it holds up to the same degree. At best, cultural models are caricatures, highlighting prominent features of a work environment. Organizations are dynamic, so your approach to a rewards strategy must be also. The following case study illustrates the need to tie compensation programs to the specific work culture. A Case Study: Arbella Insurance Arbella used to be a traditional, Boston-based property/casualty insurer with about $660 million in annual revenues.

Hay Group Insight’s rolling database of employee attitudes found that only about 40 percent of employees believed they would earn more compensation if they improved their performance. As a result, most employees are skeptical about the link between pay and performance, and therefore also about achieving an improved ROI as it relates to them. There are several reasons for so much skepticism on the part of employees, as follows: ................. 15992$ $CH2 06-22-06 11:05:57 PS PAGE 17 18 THE MANAGER’S GUIDE TO REWARDS Limitations in Base Salary Increase Pools: For many organizations, there are significant limitations to merit-based salary increases.

5. 3 So it should come as no surprise that many of the most effective programs used today to retain talent do not involve direct compensation. Figure 2-3 identifies the most effective types of programs in use F I G U R E 2 - 2 . D I F F E R E N C E S I N S A T I S F A C T I O N L E V E L : E M P L O Y E E S P L A N N I N G T O S TAY VS. THOSE PLANNING TO LEAVE Source: Hay Group Insight Database ................. 15992$ $CH2 06-22-06 11:05:44 PS PAGE 15 16 THE MANAGER’S GUIDE TO REWARDS F I G U R E 2 - 3 .

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A p-extremal length and p-capacity equality by Hesse J.

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