Pay for Performance Programs
Improve Employee Performance and Profitability
Pay for Performance is an incentive pay system which links compensation to job performance. This pay system is highly effective in motivating employees at every level and across all industry lines.
Pay for Performance compensation can be leveraged in many ways depending on your organization’s budget and goals. When formulating a Pay for Performance plan, you’ll want to consider what your organization is looking to achieve, the frequency in which you’ll award compensation to employees, and the total increase to your overall budget to fund these programs.
Two approaches of Pay for Performance Programs are merit-based and variable pay programs. Merit-based pay compensation refers to an increase to an employee’s base pay due to high performance. These raises are usually given on an annual basis and are the most used Pay for Performance approach to recognize top performing employees. Variable pay programs utilize discretionary and non-discretionary bonuses to reward top performing employees. Unlike merit-based pay increases, bonuses from variable pay programs are usually rewarded monthly or quarterly. Often, a combination of different discretionary and non-discretionary bonuses is used to achieve the desired results.
Our professional consultants can assist with determining which of these approaches will work best with your organization’s goals.
The success of our Pay for Performance Program is guaranteed – Our consulting fee is 100% contingent on that success. This guarantee provides that our project consulting fee is contingent on significant improvements being achieved in the Plan.
Our Pay for Performance Plans are highly successful in:
- Improving employee productivity.
- Reducing labor and operating costs.
- Increasing sales and market share.
- Improving product and service quality.
- Attracting and retaining best employees.