According to a research conducted globally by PwC, it has been observed that the organizational expectations and the changing needs of people are diverging into three distinct worlds of work: Blue, Green and Orange. According to the survey, the major reasons behind this change are technological breakthroughs, scarcity of resources and climate change, and shifts in global economic power. Therefore, the management practices need to be changed to accommodate a rapidly changing world of work and the employees that inhibit this world.
The green world is where society and business agendas align to give emphasis on ethical values and work life balance. In this world, monetary rewards will have the least role to play. Here the employees look for opportunities to collaborate instead of competing on performance and rewards. Therefore, the rewards here will need to be at levels that allow for living needs to be met. And, the employee value proposition in this ecologically sensitive world will be based on the impact that companies might have on the environment and society.
The orange world is where small is beautiful, and flexibility and autonomy is the greatest need for employees. Here conventional variable pay will be replaced by contractual incentives and their PMS be based on results. In this world of collaboration, the EVP would be listening to employee’s wishes, choices and giving them utmost importance. In the orange world, the company’s skills are a competitive factor, so to retain personnel; compensation can be varied according to organizational needs.
The blue world is the one that follows the money and goes wherever the opportunity lies; including high rewards for high-flyers. Here the employees will demand a highly structured and detailed PMS and the EVP for this capitalism world would be job security and long term service.
Since, the future of organizations now relies on how they architect the engagement models with relevant reward and recognition structures to attract a skilled workforce; it is required of them to start working on this so as to get a head-start.