Could it be the reward strategy?
The compensation reward strategy is the foundation of any organization’s success. Getting it right is not a guarantee of success but getting it wrong can send shock waves through the organization. Currently, the Royal Canadian Mounted Police (RCMP) are dealing with very high turnover and this may be happening for many reasons, as outlined below:
- Uncompetitive pay
- Poor working conditions
- Outdated equipment
- Hostile working environment
- Big bonuses for RCMP Brass
Click here to read an article about the RCMP quiet protests.
Click here to read and article about the RCMP culture of bullying.
Click here to read an article about RCMP bonus pay issues.
All organizations have to be strategic in their total compensation reward plan. Do they match the market, lead the market or lag the market? It is a question all organizations must answer. If the organization is lagging the market in wages there must be some other factors, such a great working conditions, to attract and retain employees.
It seems that the RCMP are not very successful in their overall reward strategy. Mounties at the rank of first-class will earn on average $20,000 less than a constable in Calgary or Vancouver, and according to CBC news, Mounties have been purchasing their own equipment.
Click here to read more about problems in the RCMP.
These issues are combined with a poor working environment and a perceived unfairness of compensation to senior staff. For instance, when the rank and file see bonuses paid out to RCMP Senior Leaders, like the ones below
- $295,514 divided up among six deputy commissioners,
- $596,669 for 28 assistant commissioners and
- $838,137 for 56 chief superintendents.
While the front line Mounties have not received a raise since January 2014. Things are going to become unsettled.
All organization must be vigilant on understanding the impact the compensation reward strategy has on all aspects of organizational success. It looks like the RCMP must review theirs.
Discussion Question
- You are a senior HR Analyst for an HR consulting firm, and your company has just been asked to provide a reward strategy to the RCMP. What recommendations would you make? Where would you recommend the RCMP begin to ensure their turnover rate does not increase?