Performance Management 2.0: Improving Your Employee Motivation Strategy

15Five

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.

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

15Five

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. in Industrial and Organizational Psychology from Wayne State University.

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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.

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. 5,300 professionals and managers fired. Where was the team whose counter-incentive plan was based on finding and correcting fraudulent activity on the part of plan participants?

5 Lessons from Glittery Smelly Incentive Plan Mistakes

Compensation Cafe

It turns out that incentive compensation doesn’t just work, it can work too well at motivating the wrong behaviors. Make sure you design your incentive plan to reduce the possibility and rewards for cheating. Incentive plans are difficult to get perfect.

The Real Cost of Mismanaged Incentives: Wells Fargo

Compensation Cafe

Today is a steaming jolt of quadruple espresso in response to the Wells Fargo incentive pay mess. If you have been under a log for a couple of weeks, please start by reading a couple of earlier Compensation Café Articles (my own When Incentive Pay Goes Rogue!

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.

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. corporate execs were not about to allow any misstep that would upset the divisional sales managers.

Everyone Gets a $100,000 bonus!

Compensation Cafe

When 1,380 employees got a $100,000 bonus each, the story should have made headlines everywhere. The brilliant bonus decision was a wonderful example of a corporation that cares deeply about its employees.

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.

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. This is another situation where many people would be very disappointed if they didn’t “get their bonus.”

Singing, Dancing and Posing: Aligning Incentives, Performance Metrics and Strategic Objectives

Compensation Cafe

How clear is the line of sight between your performance pay programs, strategically linked performance metrics and the organizational strategy? Managers will receive bonuses tied directly to their survey scores. Image courtesy of Electronic Arts.

9 Ways to Create the Best Possible Employee Incentive Options

Kazoo

As an employee incentive, cash isn’t king. As part of Kazoo’s research on rewards and recognition systems that work, we uncovered how to make employee incentives effective. Here are nine ways to create the best possible employee incentive options at your company.

Talent and Performance Management Survey Summary

HR Daily Advisor

The HR Daily Advisor research team conducted the 2016 Talent and Performance Management Survey in January, 2016. Talent and performance management are some of the most important and rigorous tasks any HR professional has to deal with. Managing Shortages. HR manager.

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. He lives in Central Florida (near The Mouse) and enjoys growing fruit and managing (?)

Compensation Dentistry (part 1)

Compensation Cafe

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. Other times we have been warned by managers or staff that a program is ineffective, or worse.

5 Employee Incentive Ideas that Boost Employee Motivation

Kazoo

Finding employee incentive ideas that boost talent recruitment, retention, and development is like finding a golden ticket for business success. Yet most traditional employee incentive plans don’t work for longer-term employee retention or talent development. Motivation-Boosting Employee Incentive Ideas. Tie Incentives to Spontaneous, Real-time, Specific Recognition. Plus, it takes the recognition work off a manager’s shoulders.

Cafe Classic: To Innovate in Rewards, Get Outside the Rewards Profession

Compensation Cafe

Which means that disruptive change, innovations that move the field of play and introduce new compensation management solutions, might likely originate outside our profession. Editor's Note: Because innovation is messy and irritating, and because we like to ruffle feathers here at the Cafe.

Study 60

Thank You for 10, 360 and 180,000 Reasons

Compensation Cafe

Even more importantly I truly want to thank each of you who have sent me a note, asked me a question or just walked up to me at some industry event and said hi. Every time it happens, I know that I have contributed, just a bit, to the industry that feeds my curiosity and my family.

You ARE Being Replaced by AI

Compensation Cafe

At offices around the world hiring managers and HR Business Partners go through their days stunned but resolute. We calculate that these will return exactly 150% of the individual’s base pay over the next four years given optimal performance and no glitches in the matrix.”.

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.

The High Success Rate of Low Expectations

Compensation Cafe

But this is how many companies view targets for their incentive plans. Too often, plans are designed this way because of a misunderstanding of incentive pay. The basic premise of pay for performance is this: targets and quotas are meant to require effort.

OMG! You Were Right All Along!

Compensation Cafe

Remember that time you spent weeks modeling a new incentive plan only to have it shot down? Remember that other time you explained to your managers that they needed to have frequent conversations on the new pay for performance program?

Cafe Classic: The Top 4 Risks in Pay for Performance

Compensation Cafe

Editor's Note: There are those who believe pay for performance is the answer to all problems - and those who see it as universally destructive. With that in mind, I give you Dan Walter and his evergreen insights on the top risks to performance pay.

3 Reasons Why Metrics Go Wrong

Compensation Cafe

A business mantra for decades has been “what gets measured gets managed.” The source of the trouble is that when people are judged by performance metrics, they are incentivized to do what the metrics measure, and what the metrics measure will be some established goal.

Autonomy Doesn’t Mean Anarchy

Compensation Cafe

The new owner put a long-time employee in charge as manager and delegated duty. They may recommend some kind of an incentive plan to reward better behavior (it might not be a bad idea). They may even provide some thoughts on performance reviews, training, and accountability.

Cafe Classic: Does Self-Help Help?

Compensation Cafe

Editor's Note: With the ever present, media-fueled merry-go-round of subject matter experts out there, why haven't we yet solved our critical talent management and reward problems? He lives in Central Florida (near The Mouse) and enjoys growing fruit and managing (?)

You are Not Lebron James (or Facebook, or Google)

Compensation Cafe

It is unlikely that your company name is used to generically describe your industry. Grab a copy of Dan’s new comprehensive issue brief , Performance-Based Equity Compensation. dan walter execution incentives motivation peer groups performensation strategy trends

Software Implementation? Skip the Machine Language!

Compensation Cafe

Planning to upgrade compensation management with new software? And yet a year later, employees and managers in those companies are avoiding many aspects of the software, and are gossiping about the ones they do use. It's a common issue right now.

Cafe Classic: The Complete Job

Compensation Cafe

Editor's Note: Do your performance management practices - in truth and not just on paper - sufficiently consider behavior in addition to results? When reviewing an employee's performance, what do you as a manager look at? How managers act.

Cafe Classic: Don't Pitch Your Old Tools

Compensation Cafe

For example, if merit grids are too complicated, pay compounding can be simply controlled by flat dollar increases for equal performance in same-grade jobs; merit increase percentages are applied to the midpoint rather than to the personal salary.

Cafe Classic: Why Are Mentors Worthless?

Compensation Cafe

No enterprise could be found that paid a bonus, held a dinner or provided any other discrete total rewards element to mentors for their role in developing talent. Refusing to reward those who develop effective performers who excel in your enterprise is extremely short-sighted.

Conference Inspiration Sources – Many and Varied for 2018 (Part 2)

Compensation Cafe

You can tell immediately that these two have “performed on stage” together in the past – many times, since there was a good chemistry between them. Base Salaries Compensation Philosophy Incentives/Bonuses Pay for Performance Performance Management Total Rewards

Compensation Work and Skin in the Game

Compensation Cafe

The problem, of course, is that industries and markets can shift quickly and unexpectedly. Base Salaries Benefits & Perquisites Compensation Philosophy Incentives/Bonuses Pay for Performance Performance Management Total Rewards

Checks on the Chalkboard

Compensation Cafe

Many are performed because the supporting systems have not been set up to their full capabilities. Dan has written several industry resources including a recent Performance-Based Equity Compensation issue brief. Is everything you do necessary?