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Purpose

The purpose of this paper is to explore the marketing notion of segmentation in the HR context and specifically how this thinking can be applied to talent and reward programs.

Design/methodology/approach

The paper presents a best practice guide and discussion based on a combination of recent survey data and the authors' experience of applying this thinking across a range of companies and industry sectors.

Findings

Segmentation can be applied as a principle with benefits across talent and reward programs but it presents a range of change challenges. Long‐term low levels of people spend in Western multinationals may lead to segmented thinking being a logical response to future people challenges. Reward and talent professionals should consider this as a potential response early and strategically.

Originality/value

The article points to the adoption of a bottom‐up, role‐based approach to segmentation as a valuable approach to thinking through the implications of segmentation in any organization.

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