The theme for this year’s International HR Day is a call to action. The twin demands of the moment are:

1. Humanify AI
2. Lead Change Together.

The call is for HR to retain people at the centre of digital transformations and innovations they experience in today’s workplace while embracing collaboration as a pathway to influencing personal and institutional change.

Where Should HR Stand?

This year, HR is expected to demonstrate courage in the following areas:

Enhancing People Experience. AI is clearly a key lever enabling business and workplace transformation today. HR has a collaborative responsibility to ensure that the rate of penetration of AI in the world of work compliments the human touch. AI should always remain an enabler of people operations. The deployment of AI across the HR Value Chain must be implemented in such a way that employees can relate with it, access it, and reckon with its contributions to their work. As innovation intensifies, new designs must provide for empathy and inclusivity. When it becomes user friendly, adoption becomes easier. Organisations that increase their investment in AI without the consideration for how it will integrate its adoption with employee experience will have a hard task getting appropriate return on their investment.

Leading Change. Things will not always remain the same for societies and organisations. These changes will impact the conduct and performance of work. There is therefore a need for HR to pay attention to influencing change in 4 cardinal areas. Firstly, HR must seek to introduce something novel such as programmes and initiatives that have never been experienced before in their respective organisations, this is the time to influence the commencement of new things in the organisation. The second focus of HR as a change leader is the pursuit of improvement. No one and no system is good enough to remain the way they are. The pace of change requires that improvements become the core fabric of the culture of any sustainable organisation. The third focal point for HR as it leads changes is to integrate the best practices. If HR dares to look around, they will find impressive initiatives that can be integrated into their current offerings. Looking beyond your industry to other sectors can be a pathway to get inspiration for integration. The fourth responsibility for leading change is to inhibit unproductive things within the system. HR must be bold in intercepting and immobilising waste and inefficiencies in the organisation.

Collaboration. The call to Humanify AI and Lead Change cannot be done in silos. HR must be a co-creator, co-innovator, co-replicator, and co-terminator. As a co- creator, HR should engage in a cross-functional generation of ideas, products, and services. HR must not take passive roles in the development of fortune-defining businesses for the organisation. As a co-innovator, HR is called to collaborate on diverse areas of improvement, research & development, and facilitating knowledge sharing & expertise. As a co-replicator, HR is expected to join in scaling successful models. They should participate in the identification and adaptation of industry best practices. As a co-terminator, HR should be involved in collaborative efforts to phase out things. Phasing out things might be about transitioning from one project to another, discontinuing unproductive approaches to work, or stop practices that negatively impact the reputation or potential for success of a company.

Final Thoughts

HR is at the centre of workplace transformation, and with this center stage spotlight comes the opportunity to collaborate with others critical stakeholders like technology to create, innovate, and replicate best practices for the benefit of all. The rise of AI would remain a catalyst for driving amongst others, a highly engaged, and productive workforce as HR rises to this call.

We wish all HR Practitioners a Happy International HR Day.

Funke Amobi, FCIPM, FCIPD, CCCIPD Professorial Fellow, Organisation, Work & Technology, Lancaster University Management School, UK

Olumuyiwa Oludayo, Ph.D., MCIPM Research Fellow, Chartered Institute of Personnel Management of Nigeria

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1. Motivating Excellence: A well-structured reward system inspires employees to meet and exceed targets. In an increasingly competitive landscape where talent retention is paramount, rewards help employees feel valued and appreciated. This, in turn, drives loyalty, commitment, and performance.
2. Harmonising HR Activities: Reward management serves as a central pillar connecting all HR functions. Recruitment, performance management, and retention strategies often revolve around reward systems.
3. Defining Value and Contribution: Rewards reflect the value an organisation places on individual contributions. Employees who feel their efforts are recognised and valued are more likely to remain engaged and motivated.
4. Fostering Discipline and Alignment: Without a clear reward system, organisations risk inconsistency and disarray. A transparent and equitable structure ensures that behaviour aligns with organisational goals and values.
5. Attracting and Retaining Talent: In today’s dynamic workforce, attracting and retaining top talent requires more than competitive salaries. A holistic reward system signals an organisation’s commitment to recognising and nurturing its people.
6. Sustaining Organisational Effectiveness: Organisations with clearly defined reward systems foster ambition, loyalty, and a sense of purpose among employees. In contrast, those without such systems risk inefficiency and stagnation.

Rewarding Employers: A Mutual Equation
The concept of reward management is not exclusive to employees; employers are also beneficiaries. For instance, sole proprietors are rewarded through the financial success of their businesses. In larger organisations, shareholders and board members are rewarded through dividends and bonuses. This mutual equation underscores the importance of reward systems in fostering a thriving ecosystem where all stakeholders benefit.

Beyond Monetary Rewards: The Bigger Picture
While monetary compensation is fundamental, rewards extend beyond financial incentives. Recognition as “Employee of the Month” or career progression opportunities often hold greater significance. For many, the prospect of leadership roles or professional growth is more rewarding than financial gain alone.
Reward management, therefore, is about aligning the aspirations of both employers and employees. It goes beyond creating structures to foster meaningful exchanges that reflect the diverse motivators within a workforce.

Ensuring Equity and Transparency
The cornerstone of a successful reward management system lies in equity and transparency. Employees must perceive the reward system as fair and consistent. Equity ensures contributions are valued appropriately, while transparency builds trust and understanding.

• Key practices to establish equity include:
• Simple Structures: Avoid overcomplication; simplicity fosters clarity.
• Employee Involvement: Engage employees in the design and implementation of reward systems.
• Goal Alignment: Tie rewards to organisational objectives in a relatable manner.
• Transparent Processes: Clearly communicate how the reward system operates to avoid perceptions of bias or favouritism.

A Call to Action
In today’s dynamic business environment, reward management is no longer optional – it is essential. It reflects an organisation’s values, drives performance, and sets the tone for its culture. As organisations strive to create workplaces where employees feel valued and motivated, a robust reward system becomes the foundation for sustained success.
Reward management is not merely about compensation; it is about cultivating a culture where contributions are celebrated, ambitions are nurtured, and excellence is the standard. By prioritising fairness, transparency, and alignment with organisational goals, businesses can unlock the full potential of their people and chart a path to enduring success.

The insights in this write-up were drawn from the CIPM radio programme The Office, where Mr. Tunde Adebayo shared his perspectives on the topic Equitable Reward Management.

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