Ok, I have to admit that I have never really appreciated the popularity of Jonathan Ross. So his comments made at the British Comedy Awards last December on how his £6m annual deal (£18m over 3-years) was worth “1,000 BBC journalists” did not come as a surprise. Needless to say this remark did not earn him popularity when the BBC had earlier announced over 2,000 job cuts.

But the well publicised events of this past month raised wider strategic issues. Two high profile ones must management effectiveness based on the BBC’s handling of the situation and the accountability that arises from public funding through licence fees. And this brings up the question of where responsibility for setting market rates sit. Yes, celebrity pay deals may not be salary packages though the inflationary effect is not dissimilar.

So perhaps the BBC did have to ‘fight off’ rival offers from Channel 4 and ITV when the 3-year deal for Jonathan Ross increased in 2006 by a cool £4.5m to £16m. But did this play a part in Simon Cowell later agreeing to a mega million deal with ITV? The question of who leads (or should lead) the market rate for talent looks set to surface again.

Is it just a debate about the perceived worth of celebrities or does it also have a direct impact on salary packages in the public and private sector? And, if there is an impact, how does this affect issues such as accountability? Tell us what you think..

The economy was certainly a talking point back in the summer however it feels more of a shadow now when compared to the past last two weeks. Across the Atlantic US corporations such as Lehman Brothers filing for bankruptcy and the major insurer AIG being taken over by their government may be ‘old’ news. But how many anticipated the much debated US government decision to initiate a major ‘bail out’ which then failed last night. In the meantime, a swift takeover of HBOS and a part nationalisation of Bradford & Bingley plc on this side of the pond move the western economy closer into unchartered territory.

While there may be fewer surprises about how we got there, what impact does the current economic situation have on reward? Since this may sound like an obvious question to some, perhaps we should ask how can reward help to navigate the current situation? As always there are winners and losers with online businesses and exporters to other currencies benefitting greatly. However for organisations with less disposable cash as well as employers looking for a decent return on investment then consider the following:

• Know your current position – Are you clear on what reward packages you offer people across the whole organisation? Are employees aware of what you offer them? If so, are they relevant to their requirements? And do they represent good value when taking company cost into account? The first step is to analyse what you’ve got and the cost of providing pay & benefit components including administration, statutory charges etc.

• Define any gaps against your budget and goals – When there is pressure to cut costs, taking a longer terms view will reduce the risk of costly mistakes. The analysis should highlight any duplication of benefits such as insurance relating to life; health cover, income protection etc. which can overlap with sick pay schemes. Consider if an income protection policy that covers 75% of salary to aged 65 is really appropriate going forward. Consider how this lines up with your contractual commitments. Think carefully before considering making changes, but don’t ignore them.

• Consider salary sacrifice schemes (for UK based organisations) – While the popularity of salary sacrifice or salary exchange schemes has been growing in the UK, now is certainly a time to consider introducing them or increasing their scope. The national insurance savings they can offer to employers and employees’ cannot be ignored. With a wide range of benefits eligible for sacrifice such as pensions; childcare vouchers; mobile phones etc. there is plenty of scope. And the downsides? There is the inevitable administration required to establish and run such schemes however this is typically outweighed by cost savings. As with all salary sacrifice or salary exchange schemes, they are not suitable for employees receiving the national minimum wage.

• Recognition still counts – When the pressure is on, the importance of recognition can get overlooked by line managers. This is turn can lead to poor customer service and reduced motivation levels. Ensure that you have a recognition scheme that contributes towards people choosing to use their discretionary effort to ‘go the extra mile’.

• The sum is greater than its parts – When there is less cash, it pays to focus on the total package when communicating with employees. And speaking of this, there is much merit in practices such as Total Reward which integrate reward elements such as the working environment, career opportunities and recognition as well as the financial rewards. While total reward is not a ‘quick win’ it is worth considering the scope for career development or flexible working which could prove more valuable than say a 2% pay rise.

• Don’t cast aside goals which are integral to your values – Phrases such as ‘people are our greatest assets’ which can wear thin for employees when they experience practices that don’t match up to the rhetoric. This certainly true when executing difficult decisions such as redundancies. This also holds true for organisations striving to be an employer of choice.

How are you managing the current economic situation?

Over the summer, I’ve noticed that there are more people setting up HR blogs in different countries, though the ones I’ve seen are mostly based in the UK or USA. It is often (but not always!) interesting to hear people’s views on different aspects of people management, but where are all those compensation or reward blogs?

I know when I was setting up the Just Rewards blog, the comp blog that most inspired me is Ann Bares Compensation Force blog. Apart from being one of the few compensation blogs out there, the quality is really high and Ann has a great knack in picking topical issues that matter to people. I recommend it strongly.

Another compensation or reward blog worth looking at is Ryan Johnson’s blog on the World at Work website. The posts are usually short, but oh so regular - which I really admire.

Are there other reward or compensation blogs that you would recommend? Or perhaps there are some HR blogs that cover reward issues in some depth? Perhaps there are reward or compensation blogs from outside the UK and USA that don’t come up in the search engines? Looking forward to seeing whats out there!