Performance-Based Compensation Articles
The Watson Company is a leader in performance optimization products and services. Established in 1983, The Watson Company offers highly-successful programs designed to attract, retain, and motivate people in a cost-effective manner, linking pay to performance in an effort to improve overall quality and results.
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Friday, August 1, 2008
I Love My Job, But...
...it's getting harder and harder to stay motivated. Don't get me wrong, I enjoy what I do and I'm good at it, but I give 110% every day while others in my office do the bare minimum. And then, everyone gets the same salary increase each year. It's just not fair. It doesn't seem to matter how hard I work. Maybe I should look for a new job.Sound familiar?
Well, what will it take to motivate you? First and foremost, you need to take charge of your career. You need to clearly understand the factors used to measure your accountability. You must understand the expectations and responsibilities of your job. And if you don't know or don't understand this information, you need to ask questions. And if such measurements don't exist, suggest that the company move to the next level by creating a plan based on job performance to motivate and retain employees. And finally, be a part of the plan. Your input is the key to your personal and financial success and the success of the company. (You can even clip these articles and drop them into your company's suggestion box).
Now, how can management motivate and retain their top performers? How can they transform below average employees into high performers? Simply, management needs to lead. Management must develop strong, competitive accountabilities for high levels of performance. Management must clearly communicate desired behaviors and results, and then reward behavior that produces results. And finally, management must encourage and support individual initiative, risk taking and results.
Wouldn't it be great to say "I love my job...no buts about it"?
We are The Watson Company, a leader in performance optimization products and services. For more information about our Miramar Beach, FL company, check out the rest of our website http://www.watsoncompany.com/.
Labels: compensation, pay, performance management
One Size Does Not Fit All!
Many organizations believe that if they develop a performance incentive plan, every one will automatically work harder and become a high performing individual. Nice thought, but not reality. In fact, incentives alone only work for a small percentage of employees in any organization.The Carrot Fallacy: The carrot fallacy comes from the story of a farmer who wants to get more performance from his mule. He develops a plan to put a carrot on a string and dangle it from the end of a stick that is strapped to the harness of the mule. The carrot hangs just out of reach of the mule. The farmer believes that the mule will work harder all day because he is trying to get to the carrot.
I don't know about mules, but when it comes to people, not everyone is going to charge ahead just to get to the carrot of an incentive that is dangled in front of them. Those who are naturally motivated to money will go after the carrot. Others, however, may or may not move after the incentive. The key to a successful incentive plan is effective reinforcement. And, the critical elements of effective reinforcement include clearly defining and communicating performance measurements, frequent performance discussions, and individual coaching sessions.
Just some food for thought!
We are The Watson Company, a leader in performance optimization products and services. For more information about our Miramar Beach, FL company, check out the rest of our website (www.watsoncompany.com).
Labels: compensation, performance management
It's Not All About The Money
What would you say if someone asked you if salary is the most important aspect of your job? If you answered "no" then you are among the majority of people.Bear with me, but here are a few interesting facts. Annual merit increases tend to be only slightly greater for the best performers. Salary increases traditionally are not tied to specific individual outcomes or accomplishments. Salaries do not retain high performers since large salary increases are commonly offered by competitors attempting to recruit key talent. Annual bonuses usually result in no noticeable difference in behavior or productivity. OUCH!
Benefits also tend not to vary within an employee group and are rarely based on individual performance. Even in organizations with profit sharing or other retention programs, most employees share the payouts regardless of individual performance or specific contribution.
We are The Watson Company, a leader in performance optimization products and services. For more information about our Miramar Beach, FL company, check out the rest of our website (www.watsoncompany.com).
Labels: compensation, pay, performance management
Figuring It Out
You're a good employee. But do you know what it takes to be a superior employee? It's not hard. You just need to understand a few things about your company and about yourself. Take a few minutes and ask yourself the following questions: Do you understand the your company's roadmap(aka vision and mission)? Do you understand the top 2 or 3 goals and objectives of your company? How do your job responsibilities contribute to the vision, mission, and success factors of your company? How can your talents be developed or better utilized at your company? It’s time to find out. Talk to your management and outline a success plan for you!Management...do you know your employees? Have you asked them what motivates them? Do you know the skills and talents of your employees? Do you know the career goals of your employees? If you don't know, it's time to ASK!
Key elements of high performance include employee goal setting, development, and coaching. These components must be linked to the core goals of the employer. Behavior and results must be driven from the executive level downward. Focus is also on competencies - the skills, knowledge, attitude and behaviors that describe how superior employees achieve desired results. It is not enough for an employee to "make the numbers" if the means do not support the vision, mission or long term goals of the company.
You can use informal or formal surveys (hint, hint), employee focus groups, or coaching sessions to make sure everyone is 'on the same page'. It's easy to get answers...just ask.
We are The Watson Company, a leader in performance optimization products and services. For more information about our Miramar Beach, FL company, check out the rest of our website (www.watsoncompany.com).
Labels: compensation, pay, performance management
The Bottom Line
We've discussed how important it is to motivate and be motivated in your job ("I Love My Job, But..."). We also discussed that incentives alone only work for a small percent of people ("One Size Does Not Fit All") and that salary adjustments and benefits alone provide little to differentiate on the basis of individual performance ("It's Not All About Money"). And finally, we discussed how to become a superior employee and how employers need to understand what motivates their employees. ("Figuring It Out").The bottom line: Employers must deal with the competitive pressures of attracting and retaining quality employees and implement strategies that motivate their employees. It should be obvious by now that the inclusion of "all employees" is key. And how is this done? The answer is to implement an effective performance plan with all the critical elements to attract, retain and motivate your employees. The importance of continuous improvement, quality, employee development, and the achievement of overall business goals need to be reinforced continuously. And the employee must be engaged in the process and the development of the plan
The design, structure, and implementation of an effective performance optimization plan are of vital importance. It must be easy to set up and maintain. It must be able to be implemented within a short period of time and have immediate impact on performance.
We are The Watson Company, a leader in performance optimization products and services. For more information about our Miramar Beach, FL company, check out the rest of our website (www.watsoncompany.com).
Labels: compensation, pay, performance management