If you want to drive innovation at your company, start by creating compensation plans that catch the eye of top talent.

That was the big takeaway from a recent fireside chat with Patti Taylor, vice president of total rewards at Xerox, at From Day One’s virtual event, “Creative Total Rewards To Set Employers Apart.” According to Taylor, innovation starts with attracting the people who can help you enter new markets and industries, and it’s never too late for a company to pivot or explore.

“Xerox is a 118-year-old company with a very iconic brand,” Taylor said. “And that brand has been aligned for many years to brick and mortar work locations around the world. This core business still exists, and it's quite prominent in our business model. However, we are creatively forging into the future with digital services solutions to meet the needs of today's clients.”

Many other companies have similar initiatives. But how exactly do you get started with such an overhaul? Taylor suggests keeping the following advice in mind.

Don’t Be Afraid to Get Creative

Skilled workers became increasingly scarce in the wake of the Great Resignation, and some began demanding higher salaries as a result. Taylor encouraged attendees not to count themselves out if the cost of top talent is outside their budget. Instead, embrace creative compensation workarounds.

“We need to be thinking outside of our tried-and-true compensation boxes that we've played in all these years,” Taylor said. ”What if we offered more days off? What if we offered an attractive sign-on bonus? Perhaps you find out a little bit more about what matters to the candidate. The total compensation package must become more flexible, and that means it's going to look more individualized.”

Taylor says that this customization can push up against org chart protocols but urged professionals to prioritize agility when they can. “It’s absolutely going to stretch our ‘reward muscles,’” she added.

Of course, one of the challenges to entering uncharted territory for your organization is that it may mean adjusting or even completely reimagining existing compensation structures and procedures.

“We've got to truly figure out what matters and what is really valid and with our positions,” Taylor said. “So first of all, we have to look again at what positions really do work. What we thought was going to go away three years ago is still here, and what we thought would sustain us from all these years before is not often working anymore.” Many companies are requiring decades-old structures in light of the fact that hybrid work is here to stay.

To Win Over Decision-makers, Use the Data

Enterprise-level changes can be impactful, but for them to work, you need the buy-in of senior leadership.

“Always lead with data,” she said. “The C-suite is going to want to see the data, and you’re going to have to show with data how the business is being negatively impacted by turnover.” 

Taylor shared an anecdote from her career. At a previous company, a finance job had three different people in the role within a two-year period. “I experienced firsthand the impact of just going over and over the same things we thought that we had already set said groundwork on,” Taylor said.

As your company explores new ways to attract and retain top talent, compensation and rewards leadership might be the strategic linchpin that ensures future innovation.

“Again, I can't get away from my challenge to everyone about being creative,” Taylor said. “Think about what you would want and what you know about what’s important to workers today.”

Nick Wolny is an editor, journalist, and consultant. Currently a senior editor at CNET, he has previously written for Fast Company, Fortune, Business Insider, and OUT Magazine, and is a frequent television commentator on technology and work life. He is based in Los Angeles.