In a BLR webinar entitled "Compensation Strategies: How to Build a Market-Competitive Salary Structure that Retains and Attracts the Very Best," Diana D. Neelman, CCP of Compensation Resources, Inc. addressed the issue of pay and performance.
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Get Your Report Now!Where results meet or exceed expectations, pay actions should reflect the level of achievement. This need not only be accomplished through the merit system, but through some form of variable compensation when appropriate. A pay for performance process, when implemented effectively, can be used to eliminate the entitlement mentality.
Once grade assignments have been finalized, each employee's band should be identified. This will provide an indication of where employees fall overall against the marketplace. Performance ratings for each employee under your current performance management program should be identified.
In a pay for performance culture, performance rating along with placement in the salary range can be an effective tool in managing your structures and in providing pay increases based on performance.
Performance management should include:
- Periodic and frequent meetings between the supervisor and employee
- A high level of employee participation in the evaluation and development process
- The mutual setting of specific goals to be achieved by employees in the future
- A helpful and constructive attitude on the part of the manager
- The solution of job problems, which may be hampering the employee's job performance
- Fair and accurate evaluation of performance
Diana D. Neelman is a Principal and Senior Consultant with Compensation Resources, Inc.. (www. compensationresources.com) She manages the research and data analysis relative to the design and implementation of comprehensive compensation programs. Ms. Neelman is responsible for the development of written policy and communication materials, including plan documents, policies and procedures manuals and administrative forms that support the plan designs. She is also responsible for developing and conducting training programs covering various compensation topics. Furthermore, she oversees CRI's Survey Department, which published various compensation and benefits studies each year.
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