A common phrase in the business world is that organizations have to be constantly evolving,
rethinking and reorganizing their operating strategies. An example of this is the new trends in
organizational structures: there is no longer room for large hierarchical structures, based on
the departmentalization of activities and responsibilities.
The business world no longer has space for these concepts, they need agile structures, where
each team member has not only a vision of the whole, but a clear perception of their influence
on the whole.
However, these new organizational models bring a paradoxical question: how to adapt “flat”
structures with fewer levels, but with higher levels of demands, to the growing career and
salary expectations of employees? Especially the new generations.
The answer to this question is in the organizational leadership model, which should start to
value actions and results to the detriment of hierarchical levels and positions, reinforcing and
valuing the sense of accomplishment and the perception of each employee’s professional
legacy, all of this associated with a remuneration and recognition model aligned with this new
way of acting.
Compensation models in many companies are still treated as taboo. Companies need to learn
how to treat remuneration by differentiating between “potential” and “performance”. The
potential must be recognized in the fixed remuneration model, as it tends to be perennial, it is
the look of the future, while the performance must be recognized in the variable
remuneration, as it is the recognition and the look of what has been accomplished.
Brazil has legislation for variable remuneration that is very poorly employed by most
companies, and that could help a lot in this process of functional evolution that organizations
need to remain competitive. We at DSI Partners are prepared to help you structure your
organizational strategy.
Count on us.
