” —The World at Work Handbook of Compensation, Benefits & Total Rewards... Recruiting and RetentionThe average raise is 3 percent of salary.. The cost to replace an employee is 30-400 pe
Trang 3What Is
“ Links pay (base and/or variable), in whole or in part, to individual, group, and/or organizational performance ”
—The World at Work Handbook of Compensation, Benefits & Total Rewards
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Types of Pay for Performance
• Bonus
• Variable (commission)
• Yearly raises
Trang 55 Reasons
for Performance
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Trang 7Recruiting and Retention
The average raise is 3 percent of salary.
The cost to replace an employee is 30-400 percent of salary.
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Trang 9Better Culture and
Happier Employees
“In large part, culture is a product of compensation ”
— Alec Haverstick
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Trang 11Who Does Compensation
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BABY BOOMERS
1946-1964
GEN X AND BUSTERS
1965-1983
GEN Y AND MILLENNIALS
COMMUNICATION ABOUT COMP
Trang 13MEN
• No 6 reason they left their job
• 79 percent are annoyed by low salaries
• 74 percent are annoyed by unequal pay
WOMEN
• No 4 reason they left their job
• 86 percent are annoyed by low salaries
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MANAGERS
• No 5 reason they left their job
• 84 percent are annoyed by low salaries
• 79 percent are annoyed by unequal pay
NON-MANAGERS
• No 4 reason they left their job
• 81 percent are annoyed by low salaries
• 78 percent are annoyed by unequal pay
Trang 15• Individualized Rewards & Recognition
• Variable or Incentive Pay Plan
• Base Pay Plan
• Company Culture, Compensation Philosophy & Compensation Strategy
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• Develop Clear Compensation Strategy
• Get Reliable Market Data
• Develop Clear and Aligned Goals
Strategy
Trang 17How Should I Start Paying
for Performance?
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Pay for Performance?
Negatively labeled Millennials Talking compensation is taboo Switching jobs is easier
Moving away from performance reviews
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Trang 19Daniel’s Tips
Take a look at your culture.
Bring back (some) reviews
Create clear communication
Make unique decisions for your unique company
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Mykkah’s Tips
Gain executive buy-in.
Align with organization goals & culture.
Get the right systems in place.
Train managers properly.
Communicate clearly across the organization.
Trang 21“ Employees won’t believe there is a link between pay and performance unless they can see it ”
—Margaret O’Hanlon, re:Think Consulting
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bamboohr.com/blog | payscale.com/compensation-today
Trang 23Questions ?
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