夜上海论坛RCS

first_imgAfter10 years of multinational growth, Latin American companies are facing theproblem of retaining and motivating key performers. Jacqueline Vitali reportsWhenmultinationals entered the Latin American region a decade ago, the biggestchallenge was to find capable staff. Today the problem of how to attract,motivate and retain high-impact performers is beginning to surface. InLatin America, as in the US, Canada and Europe, total remuneration packagesstart with base salary but also typically include long and short-term incentivepay and benefits. In countries with a strong flow of foreign investments suchas Brazil, Argentina, Mexico and Chile, a fair salary has to be topped up by apackage of other rewards, incentives and working conditions. Surprisingly,one of the key motivators is cars, followed by bonuses. To attract top-leveltalent in Brazil for example, companies need to provide executives and managerswith a luxury car, as well as a defined benefit retirement plan. Butexpectations and cultural values regarding total remuneration packages candiffer significantly from country to country in the Latin region. “InArgentina where the economic situation is very unstable,” says Luis PerezVan Morlegan from Argentinean-based HR consultancy Bertoni & Asociados/HNeumann International, “many good executives are looking for work butobviously the top performers are employed and not always willing to leaveunless another company offers them a substantial hiring bonus. One of the bestmethods of attraction is a bonus because it is linked to the performance of theemployee within the company. It represents a percentage of the annualremuneration which is the equivalent to two to five times the wages.”Long-termincentives such as stock option programmes were implemented in a growing numberof companies in the region, especially in the fast expanding hi-tech andtelecommunication sectors. “In Mexico,” explains Hugo Oliveri, aconsultant based at the Mexican offices of professional services firm WatsonWyatt, “stock options are becoming a very strong tool to retain highlyskilled performers. They represent 25% of the basic salary. Bonuses are givenin 80% of companies, which represents 20% of the basic salary.” Asurvey carried out by Watson Wyatt in Puerto Rico indicates that despite thehigh unemployment rate of approximately 11 per cent, base salary increasesrange from 4.5 per cent to 4.8 per cent each year. And yet, over 50 per cent ofthose companies surveyed are experiencing difficulties in attracting andretaining critical skills and talent.”Totackle this problem,” explains US-based HR consultant Douglas H.Hachenburg, “companies have to incorporate pay-for-performance with largeopportunities for high performers. A strong recruitment strategy is alsoimportant to select the most qualified individual. Finally, improving employeecommunication in areas such as benefits is also crucial. Bonuses are paid atall levels, with more senior positions eligible for substantial payments,although not as high as in the US. Cars are one of the most attractive andfrequent management perquisites in the country.”Formany companies in the region, variable pay continues to play an important rolein linking rewards to performance. Programmes that have increased inutilisation since 1998 are: individual performance incentives, team/small groupincentives, spot recognition awards and retention bonuses.Butthere are also three non-financial incentives that have a strong impact inattracting highly skilled workers in the region – job stability, training andpromotion. However,as work-life balance issues are important in Latin America, benefits thatrecognise family commitments go down well with employees too. Anna MariaGonzalez, for example, HR manager of fmcg company Sara Lee in the DominicanRepublic, says management at Sara Lee in the Latin region has focused on itsemployees’ number one priority – their families. “Dominicancompanies are following US examples by including family members in fringebenefits, such as life and health insurance, club memberships and so on. But weare also going the extra mile to look after employees by recognising homecommitments. Help is given through organising summer camps, Christmas partiesand picnics for staff and family members. At Christmas we also give out foodbaskets for the family,” says Gonzalez. “And this is a great way tohold on to staff.”Manycompanies in the region also provide free lunches and vitamins for employees,especially in areas where malnutrition is a problem. Previous Article Next Article Related posts:No related photos. Comments are closed. Hanging on to the high impactersOn 1 Dec 2001 in Personnel Todaylast_img read more