Today, every company is a performance based company and as such needs to learn how to use what salary budgets it has for maximum effect on employee performance while still ensuring equity within internal and external components and avoiding compliance problems. However realistically, salary budgets and increase budgets are determined by not only compensation philosophy and range movements but the actual budget (or not) for increases the employer has.
Before you get started, keep in mind that adopting a competitive, performance-based pay philosophy requires some extra work. In order to differentiate wages based upon the results of your employees, you need to know what you want people to do, be able to sort out how they are performing and, based on that, differentiate their pay.
Objectives of the Presentation
Why Should you Attend
- Basic elements of a salary system
- What is variable pay
- How to use variable pay
- Recognizing performance with pay
- The right frequency of performance reviews
- Using a limited budget most efficiently
When your supervisors determine which employees will get pay increases and how much they deserve, they are making or breaking your business. How? By connecting performance to pay, or not, your managers tell your employees what sort of work ethic, skills, and attitude get rewarded at your company.
The benefit of your extra effort regarding compensation is that you can drive your funds towards rewarding high-performing employees who may even be paid less than the market. You will first look at your best-performing employees, and then within that category, push more money towards those who are paid less than the market.
Who will Benefit
- What is internal and external equity? How to understand and use ranges effectively
- How salary compression and salary inversion happen and what you can do
- Current salary structure - Understanding how those numbers got that way and what they mean
- Building modern salary budgets and matrixes
- Using what money you have (no matter how little) for increases in a more effective way - offsetting the effects of salary compression while rewarding higher performers
How an automatic Cost of Living Increase (COLA) nowadays is akin to the idea of Santa Claus. Nice but not real
- How small or mid-sized businesses can have more flexibility with pay in a tight economy
- Compensation is a reward system. Changing the mindset of pay and taking the mystery out of pay
- How explaining how salary ranges are determined and increases awarded can help an employer operationally - not only at increase time but also year round
- Mistakes than can blindside an employer compliance wise
- HR Managers
- HR Generalists
- Business Owners and CEO's
- Plant Managers
- Management Personnel
- Compensation Associates
If you're not already using Merit Based Compensation, you may want to consider creating a merit-based performance matrix (MBM). The merit-based, pay-for-performance matrix serves as a guide for supervisors so that they suggest pay increases that are fair and support business objectives. The merit matrix connects performance to market rate pay.