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Progressive Performance Management: Why Your Employee Compensation Strategy Is Holding You Back


The Annual Performance Review is Dead! One of the main issues that HR leaders face when considering a progressive performance management program is how to revamp their employee compensation strategy. and Performance Management 2.0. (PM

Performance Management 2.0: Improving Your Employee Motivation Strategy


How do you address employees who aren’t performing? I joined 15Five’s Director of People Science, Courtney Bigony and Chief Culture Officer, Shane Metcalf, in a recent webinar where we addressed ratings and compensation as they relate to performance reviews.

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The Real Cost of Mismanaged Incentives: Wells Fargo

Compensation Cafe

Well, so much for the warm-hearted caffeinated, pick-me-up from the Comp Café. Today is a steaming jolt of quadruple espresso in response to the Wells Fargo incentive pay mess. I answered that if I had been asked a few weeks ago, Wells Fargo would have been on the list.

Quick Reminder on Performance Management Effectiveness

Compensation Cafe

I recently ran into a study on effective performance management practices that I want to share with you. Not because it says anything really new, but because it does a great job on focus and insight, attributes we can all use when it comes to performance management.

The Dark Side of Incentives

Compensation Cafe

When describing their annual incentive plan (STI) most organizations will highlight to eligible employees the upside reward opportunities provided by the plan. That is, the better your personal performance the greater the reward.

Compensation Dentistry (part 1)

Compensation Cafe

Compensation programs can often be the same. Annual and long-term incentive plans are often not as well cared for. They just exist and perform as designed and we may not dig back into them more than every couple or three years.

When Incentive Pay Goes Rogue!

Compensation Cafe

A friend of mine likes to say: “It’s not that incentive pay doesn’t work well, it’s that it works TOO well. Wells Fargo just paid $185M in fines and penalties because its employees fraudulently opened additional accounting for people who were already customers.

An Unpopular Sales Incentive Plan Design Fiasco

Compensation Cafe

The new sales incentive plan was not well received. All the worldwide regional managers in the audience spoke up in loud protest when it was announced at the global sales conference. The vehement rejection of the new sales incentive program stunned all the officers on the dais.

Cafe Classic: Putting on Your Explorer Cap via Appreciative Inquiry for the Compensation Pro

Compensation Cafe

Editor's Note: More than a few of us number nerds populating the field of compensation have a Classic deficit in the soft skills required to constructively explore and understand the territory and circumstances surrounding employee and organizational performance. .

A New Grad Schools Us on Performance Management

Compensation Cafe

It’s five minutes well spent, but here’s s snippet if you are in a hurry. “No This kid speaks an eloquent truth that every human resources and compensation professional must remember. But without them performance can devolve into a popularity or personality contest.

Cafe Classic: Don't Blame Incentives

Compensation Cafe

Editor's Note: Incentives are a tool. Incentives are not the cause of bad reinforcement programs, any more than forests should be blamed for the existence of warfare. Because incentives are powerful, they should be designed and implemented with great care.

Excessively Successful Incentives

Compensation Cafe

The only thing worse than an incentive that doesn’t work is one that works all too well. Wells Fargo is just the latest company to be ethically embarrassed and financially distressed by a fiasco involving excessively motivational incentives.

Update: Employee Compensation at Wells Fargo

Compensation Cafe

Compensation Cafe has covered Wells Fargo's pay practices since 2009, when the Bank canceled prefunded employee recognition and rewards events in the midst of the Recession, blaming it on federal government restrictions on bank practices following the subprime mortgage crisis.

3 Ways to Improve This Year's Compensation Communications

Compensation Cafe

Here are three tips you can use any time during the year, but most of all during merit increase and incentive award periods. A champion is someone who will guide and influence the progress of your communications, especially with senior management and department heads.

Compensation Conundrums and Commas

Compensation Cafe

You may have been warned to, "Watch your commas, Ps and Qs to be safe from compensation disaster." Or perhaps it was a warning to, "Watch your commas, Ps, and Qs to be safe from compensation disaster." The compensation issue came from confusion over a series of exempt categories.

Money for Motivation: How Incentive Based Pay Works


Last week I was talking with some folks about using compensation to drive employee behavior, and it occurred to me that I have never shared anything about that topic here. We want to instantly think that we can drive performance or discourage behaviors through monetary incentives.

The End of Compensation, Rewards, and Human Resource Management

Compensation Cafe

In spite of all the progress we’ve made over the years and decades, a troublesome fissure still persists in approaches to Compensation, Rewards, and Human Resource Management (CRHR) in many organizations. We flaunt our ARMS in matters of strategy, policy, performance, and achievements.

Marketing Compensation to Employees and Managers? You Bet.

Compensation Cafe

What, if anything, does that have to do with our compensation work? You know, just like if you have a new compensation change or improvement, why don't employees and managers just buy it and applaud your innovation? Marketing?

Compensation Work and Skin in the Game

Compensation Cafe

I think it could raise some interesting questions about how compensation jobs and functions are defined and organized. . How quickly could you (compensation professional) get your head around the differences in skills, practices and behaviors needed?

Why Compensation Doesn’t Drive Motivation


But will the incentive of a higher salary or compensation bonus improve their work performance? Well, that’s another story. Financial incentives can undermine autonomy and intrinsic motivation Click To Tweet. More than 70 percent of today’s workforce are knowledge-based employees, meaning their performance is driven by their skills, attitude, and their ability to innovate and drive change. Compensation Isn’t Enough.

Cafe Classic: Crisis Can Open Door to New & Improved Programs, But Mind the Gap!

Compensation Cafe

While today's economic environment certainly brings a host of challenges to those of us in the rewards field, it may bring opportunities as well. Base Salaries Compensation Communication Incentives/Bonuses Pay for Performance Performance Management Recognition

17 Words About Incentive Pay

Compensation Cafe

The 17 words listed align incredibly well with common incentive plan designs. A quick review of incentive pay basics. The following seem to align well with Minimum levels of achievement: Almost Certainly. That leaves three that don’t fit our normal incentive models.

Cafe Classic: Disengaging from Compensation Schemes

Compensation Cafe

No reinforcement program or incentive plan works forever; but they seem to last forever, lingering on long past the day when their effectiveness expired. They become taken for granted, both by management and by the employees, readily accepted as a fixed cost.

Two Types of Compensation People

Compensation Cafe

Compensation people seem to come in two types: employee judges and employee advocates. One group adamantly maintains that pay for performance is a Good Thing and rewards should be allocated to the most deserving. Another group (which I will carelessly label "advocates") prefers to ignore individual performance distinctions and instead would confer identical generous compensation rights to all employees.

Spring Cleaning Checklist!

Compensation Cafe

Bonuses are paid, last year's results are old news and grand plans for this year have been signed, sealed and delivered. Run your bonus plan(s)through the washer periodically. Polish your compensation philosophy. Looking at clear skies these days?

What Can the Novel Coronavirus Teach Us About Compensation Communication?

Compensation Cafe

The fact is, the virus' emergence gives us a case study that aligns in a perfect way with pay-for-performance communication. If you're starting to see those building blocks through the haze, let's take a shot at a parallel compensation case story. if we are to stay well and safe.

The Immutable Laws of Compensation (Part 1)

Compensation Cafe

I was happy to see the repost Dan Walter’s article of the Newtonian Laws of Compensation Motion since I had been ruminating on the laws of compensation. . For quite some time, Sir Isaac Newton’s laws of motion have become well-known.

Cafe Classic: That's The Way We Do Things Around Here

Compensation Cafe

However, as soon as he starts to climb, the researcher sprays the monkey with ice-cold water as well as the other 4 monkeys. When a second monkey tries to climb the ladder, the researcher again sprays the monkey with ice-cold water, as well as the other 4 watching monkeys.

A Matter of Optics

Compensation Cafe

Who are they, those critics who question the pay-for-performance rationale for executive pay? I like the idea of measuring performance to gauge the amount of reward. Chuck is a broad-based subject matter expert with a specialty in international and expatriate compensation.

Performance Management In The Post-Rating Era – Quo Vadis?


If this culture is to remain intact – in the form of pay-for-performance, for example – how will salary and career development decisions be taken if ratings are no longer used? Delegating these decisions to individual managers or to some machine-based algorithms is not the answer.

Are HR and Employees in a Dysfunctional, Codependent Relationship?

Compensation Cafe

HR feels like their job is to solve the problems of employees and managers. How often does HR intervene to take over the role of the manager? Employees feel like everything bad that happens is someone else’s fault – HR’s, Management’s, the clients, the market.

Develop Grow Achieve - 3 Tiers for P4P

Compensation Cafe

Pay for performance continues to rise. However, the failure of pay for performance is rising almost as fast. Usually the drive for pay for performance comes from the top of the company. “We ACHIEVE This is what your CEO or other “boss-like figure” means by performance-based pay.

Solid Reasons to Start Communication Planning in August

Compensation Cafe

If your compensation system works on a calendar year, you're going to be asked to start a compensation communication plan in September. Managers are more likely to support employee focus groups when they are in an August frame of mind, as well.

How Well Do Numbers Speak for Themselves?

Compensation Cafe

Fiscal year 2106 total compensation was $860,198. Base pay $750,000; bonus $100,000; non taxable pay $10,198. Total compensation ranked fifth in the Big Ten , and three of those above her are being paid more than a $1,000,000.

5 Ways to Fight the "Peanut Butter" Syndrome

Compensation Cafe

When it's time to link salary increases to performance ratings, the famous "peanut butter" syndrome comes to mind. You know, the one where you give managers a merit budget to allocate. It's like spreading peanut butter evenly, a favorite simile in the compensation industry.