3 Reasons Why Metrics Go Wrong

Compensation Cafe

A business mantra for decades has been “what gets measured gets managed.” Sadly, in some areas over the years, that’s become twisted to focus on the metric and not the behavior or goal underlying the metric. It’s time to consider new metrics for how we work today.

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.

Performance Management Disrupted: Empowering Individuals and Teams to Do Their Best

Bersin with Deloitte

Over the last 20 years, organizations have redesigned, reworked, and revamped performance management time and time again. They’ve tried different rating models, feedback tools, manager coaching, recognition programs, continuous performance management, and more.

Money for Motivation: How Incentive Based Pay Works

UpstartHR

Even small companies ( I’m looking at you, Mr/Ms HR Manager of a company with less than 250 employees ) can incorporate these elements into their compensation planning without too much stress. Here are a few: Bonuses. Group incentives. This Hinges on Performance.

Unleashing Your Inner Scientist: Lab Mindsets & HR/Compensation Experiments

Compensation Force

Anderson of Northwestern's Kellogg School and Duncan Simester of MIT's Sloan School of Management. You might look at your results by, for example, differences in tenure, performance, HQ versus field, income level and even demographics like age, gender, etc.

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.

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?

Heed These 5 Performance Management Realities—Before It’s Too Late!

ReviewSNAP

Previously, we wrote about the pressing need to solve the performance management puzzle that baffles so many of our organizations. To “solve” performance management, we not only need to address each piece of the puzzle but we also must come to terms with a new set of realities. Here are five of the most critical new realities that, once embraced, will help us all solve the performance management puzzle: 1.

What Is Short Term Incentive Administration?

HRsoft

Short term incentive administration refers to the awards given in a time period of up to one year. Which Outcomes Do Short Term Incentives Support? According to research conducted by Mercer , metrics like revenue and operating incomes are typically the basis for short term incentives.

Plan Design Laid Bare!

Compensation Cafe

I'm talking about: Requiring that the design helps your company achieve its strategic business and talent management goals. Spend time understanding the nature and root causes of the performance challenges that your new plan must address. Best practices for plan design?

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 Metrics for development can be tricky when looking for direct alignment to pay.

Is Team Chemistry the Next Big Thing in Performance and Rewards?

Compensation Force

Is "making teams better" the new holy grail of performance analytics? More quantitative attention is being paid to how well players improve the in-game performances of their teammates. Indeed, how can the coaches improve the TQ—Teamness Quotient—of their players’ performances?

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. Incorrect Metrics.

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.

3 Tips for Effective Incentive Compensation Management

HRsoft

Yet, while offering a higher salary may attract top talent, it won’t necessarily promote long-term performance conducive to meeting your organizational goals. That’s why so many business leaders opt for incentive compensation. The idea that money is a great motivator is timeless.

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: Before You Link Pay to ANYTHING.

Compensation Cafe

As any of us who've considered using customer feedback metrics in incentive design know, this can be a potential minefield. Markey's cautionary advice on pay linkage is well written and worth our consideration beyond the boundaries of customer feedback metrics.

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.

Conference Inspiration Sources – Many and Varied for 2018

Compensation Cafe

These included: pay transparency, CEO pay ratios, gender pay equality, applied analytics, ratingless continuous performance management, behavioral science, artificial intelligence/machine learning and the speculated future of pay and rewards, the rewards process and the rewards professional.

How Do You Measure Results?

Compensation Cafe

We were discussing incentive plans, and my friend asked what I thought was a pretty simple question: “How do you measure results?”. I started blathering about metrics and goals, hockey-stick shaped graphs, targets, and thresholds.

Cafe Classic: The Compensation Cookbook

Compensation Cafe

Spice up your initial cafeteria offerings with the perfect blend of base, incentive, extrinsic, variable, flex, step, intrinsic, static and untrinsic elements. Freeze the pay of the remaining lowest 5% of performers and place it in a Frozen Fund. Office of Personnel Management.

Time Wasting: The Anti-Reward

Compensation Cafe

Is time wasting, as a product of poorly structured (and perhaps poorly incented) management undermining your reward program? 83% of the study''s respondents reported that their time is wasted by managers or colleagues with too much on their plate.

If Money Were the Solution.

Compensation Cafe

Roads and railroads would approach the safety record of airlines, whose safety and customer satisfaction metrics would also improve. If money alone could solve all problems, every issue could be reduced to an expense item. Life would be simpler.

Why Equity and Not Just a Bigger Salary?

Compensation Cafe

This February, the Harvard Business Review published Stop Paying Executives for Performance ” by Dan Cable and Freek Vermeulen. The basis of the article is that we do away with all executive incentive pay and replace it with high (in cases much higher) salary.

Thinking about Strategy for the New Year

Compensation Cafe

For instance, I had a client who was the founding HR manager of a new food processing business. You can look at current employee metrics to further analyze your current state. Base Salaries Compensation Philosophy Competencies Incentives/Bonuses Total Rewards

OKR: Objectives and Key Results FAQs

7geese

Can employee performance be partially evaluated by Objectives and Key Results (OKRs)? What metrics should be used for Objectives and Key Results (OKRs)? More often than not, KPIs and MBOs are creating managers and delegated to employees. Positive and negative metrics.

Cafe Classic: Making the CFO Your New BFF

Compensation Cafe

Finance and HR seem to have similar values: Invest in rewards to drive ROI and tie rewards to financial performance. We also seem to prioritize metrics in a similar way. Executive Compensation Incentives/Bonuses Total Rewards

Cafe Classic: The Compensation Cookbook

Compensation Cafe

Spice up your initial cafeteria offerings with the perfect blend of base, incentive, extrinsic, variable, flex, step, intrinsic, static and untrinsic elements. Freeze the pay of the remaining lowest 5% of performers and place it in a Frozen Fund. Office of Personnel Management.

Annual Performance Reviews Aren’t Dead, but They Do Need New Life

Capterra

If you’re a small or midsize business (SMB) that does annual performance reviews, I have some terrible news. Annual performance reviews are dead. A staple of performance management since the 1950s, gone forever. Jump to: What should stay: Performance ratings.

BLR’s 2017–2018 Pay Budget and Variable Pay Survey

HR Daily Advisor

to senior management, 19.1% awarded as much to employees at the management level, 19.7% awarded it to non-management salaried exempt employees, 20.6% A peek at the maximum increase tied to a performance scale of 1–5 shows that 20.1% Performance management: 8.4%.

How to Manage the B-Team

Cornerstone On Demand

In mid-August, a New York Times article about Amazon featured heated accounts from former employees describing a workplace that rewards top performers with praise and bonuses, while punishing those who can't — or won't — commit to 85-hour work weeks and 24/7 availability.

How To 444

5 Steps to More Accurate Performance Reviews

Bonusly

But that’s exactly what we ask employees and managers to do when we use an annual performance review system. Hold on—I thought we were moving into an era of modern performance management. Physicians [who were ineligible for bonuses but were exposed to peer encouragement].demonstrated

Selecting Components and Categories for Your Total Rewards Strategy 

HRsoft

Performance & Recognition. Commissions and different bonuses and incentives are itemized. Performance and Recognition can include information about awards, performance goals and specific programs for eligible employees.

We Eliminated Annual Performance Reviews. Now What?

SAP Innovation

They all eliminated their annual performance review practices. In fact, six percent of Fortune 500 companies have already put a stop to their rate-centric performance management culture. The reason is simple: some say that if performance reviews were a drug, they would never pass the Food and Drug Administration given their wide range of vile side effects. And HR managers? Allocated bonuses based on team performance.

Adobe 31