Employees must be motivated to contribute to meeting organizational objectives by performing at a high level. There is an abundance of research that supports the power of rewards to motivate performance. Of course that same research suggests employees must believe rewards are based on performance and that the rewards are equitable, competitive and appropriate. Occasionally … Continue reading Motivating Critical Talent To Perform
How valuable is benchmarking when it is used for HR strategies and programs? What form should it take? What processes are most likely to make it useful? Benchmarking is generally defined as a process used by organizations to evaluate various aspects of their processes in relation to best/common practice. It can assist organizations in thinking … Continue reading So What Is Benchmarking Specifically?
Determining the relationship of an organization’s pay structures and pay rates to those prevailing in the relevant labor markets is a critical part of its compensation management system. Getting it wrong can result in unnecessarily high compensation costs or non-competitive rates that can result in dissatisfaction and turnover. But getting it right is challenging. Compensation … Continue reading Surveys Are the “Rosetta Stones” of Market Pricing in Compensation Management
Rewards practitioners must make decisions as to the types of strategies they formulate and the programs they design to support strategy. A critical issue is whether to maintain internal consistency. Another is whether to emulate what other organizations do or to innovate. Both the internal consistency versus customization and the external emulation versus innovation decisions … Continue reading Innovation vs. Emulation – Treating HR as a “Decision Science”
This is the era of “big data” and “analytics” if you listen to the pop literature. And to some extent it is… or should be. Management increasingly demands evidence to support recommendations, rather than “that’s what others do” or “it is prevailing practice.” And management is also realizing that mimicking the strategies others use to … Continue reading Analytics In Rewards Management
Economics: The conversion of what have been fixed costs to variable costs is an advantage of some significance. Variable pay awards do not compound the way base pay adjustments do, thereby lowering the escalation of rates over time. Assuming variable pay is tied to performance, it both allocates awards more optimally and is contingent on … Continue reading 5 Business Reasons To Consider Including Variable Pay In The Total Direct Compensation Strategy
There are programs that do not stand up under scrutiny and that will breed suspicion that the playing field has been tilted in favor of executives. These “third rail” programs should be avoided. They can be recognized by their characteristics: High Upside Potential; No Downside Risk: Adverse reaction is inevitable when certain types of programs … Continue reading Executive Compensation: Programs That Should Be Avoided
Variable compensation can be suitable for all types of organizations. But the type of variable compensation plans that best suit the context varies across organizations and even across employee types within an organization. Whether or not an organization adopts variable compensation should depend on the type of environment it operates within, its culture, its strategy … Continue reading Is Variable Compensation Suitable for Your Organization?