Archive for the ‘Performance Management’ Category
Setting Up a Manager’s Guide to Performance and Rewards
It’s important for companies to have a guide to compensation for their managers and employees. They need to have a framework so they are effectively spending compensation dollars. A company should want to foster fair and consistent pay decisions through the use of compensation tools and performance processes, ultimately to link total pay with both individual and the business's performance. It’s also equally important that employees have ...
Read More →Merit Pay – Is It Worth It?
Merit pay systems have been around in some form since the early part of the 20th Century. The objectives of a merit pay system are: • Attract, retain and motivate. • Develop a method to distribute pay equitably based on performance. • Use of merit increase guidelines tied in with objective performance measures. Expectancy Theory There is an Expectancy Theory about motivating with pay. The components of this theory are: • ...
Read More →Why Don’t We Create a Better ROI for Salary Increases?
According to a recent AON/Hewitt survey, even with small merit increase budgets, companies are still trying to spread the shrinking merit increase budgets across all employees. This creates a no-win scenario, as average performers who should be happy to receive an increase are disappointed that it wasn’t more and high performers feel undervalued for their contributions. From a recent IBM study, one CEO said: “All of my competitors have ...
Read More →Are You Ready to Go “Naked”?
We’ve heard over the past year about companies moving from performance ratings to more meaningful conversations around performance. Assuming you’ve had an annual performance review program in place, along with a salary increase matrix based on performance ratings and employees’ positions in a salary band/range, it would take a great deal of planning and thought to move from that system to one without those guidelines. The benefits of ...
Read More →Career Growth vs. Performance Management
If you have had your nose to the grindstone for the last year (or buried in performance review forms), you may have missed all of the coverage of high profile companies significantly overhauling or even completely doing away with their current performance management (PM) processes. Companies like Adobe, Microsoft, Dell, Juniper and (gasp) GE have recently decided to take a completely different approach to formally evaluating employee performance. This ...
Read More →It’s July – Do you know where your sales are?
Summer is a time of fun and adventure, a time to kick back and enjoy family and friends during vacations and long weekends. Lazy days on the hammock reading a book…. Sounds great, but here’s a dose of reality: The sales year is half over, Q2 is closed out and there are less than six (6) months to reach your 2016 quotas. How is the year going? If ...
Read More →Performance Management
Introduction • Elements of the System – Performance Planning and Accomplishment * Major Activity Areas * Objectives * Measures • Unscheduled Situations – Unanticipated Accomplishments – Missed Opportunities • Annual Evaluation of Overall Performance Why Plan Performance? • People work best if they know: – What's expected; – How accomplishments are measured; and, – How performance will be evaluated. Performance Planning and Accomplishment • Establishing Major Activity Areas • Targeting Performance Objectives • Developing Performance ...
Read More →Goal Setting Best Practices
What is Performance Management? Performance management is all about getting results from people. Goals have to be set, progress checked, course corrections made, performance appraisals done, and development needs identified and pursued. For the very best results, all of these things should be done informally and formally throughout the year, by both employees and their managers. Some Goal Setting Best Practices are as follows: • Break down goals ...
Read More →Unraveling Sales Goal-Setting
Sales goal-setting seems to be the most challenging component of sales compensation design for small and large companies alike. The best designed sales compensation plan can fail without effective goal setting. If goals are set too high and are not achievable, a company will see an increase in sales turnover and poor sales results. If goals are set too low, a company will ...
Read More →Collaborative Approach to Incentive Sales Compensation Design
We recently completed a sales compensation design project for a company that transitioned their sales employees from a corporate profit sharing incentive to a true sales incentive plan based on individual sales performance. The key to the success of the project was including both sales management and sales employees in the design process. Collaborating with the sales force not only provided valuable input to determining the most effective design of the plan, but also helped ...
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