INDUSTRY INSIGHTS YOUR PEERS ARE READING
Could it be that we are designing and communicating incentives for our highest performance all wrong? This study specifically looked at the impact of incentives on motor and neurological performance in high-pressure situations. MORE
Incentive compensation is one form of the popular “pay for performance” compensation models organizations are using to foster better performance through financial rewards. Let’s take a closer look to find out whether incentivizing performance is the best choice for your company. MORE
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. MORE
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. MORE
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. MORE
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. MORE
In his article Evidence-Based Rewards Management in WorldatWork's Journal, Robert Greene talks about the importance of moving our profession to a more evidence-based approach. When was the last time you picked up a copy of Academy of Management Journal ? MORE
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. MORE
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. MORE
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. MORE
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. MORE
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? MORE
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. MORE
Performance management system failure most often comes down to a lack of clear purpose. However, a lack of alignment can also derail performance management systems. Is Performance Management Aligned? Managers are usually on the hot seat for failures. MORE
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. MORE
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. MORE
When we make performance management purely rules-based the people who score best are often those who are the best at following the rules, not the best at building company value. Lately it seems like many companies are considering getting rid of performance review scores altogether. MORE
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.” MORE
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. MORE
It’s no secret that federal government has a troubling and long-standing reputation for low employee satisfaction, engagement and performance. Why is the President’s statement causing a stir in public sector management? How Performance Management Systems Can Help. MORE
Incentive compensation planning takes the concept a step further. Incentive Compensation is variable pay that is given to deserving candidates for exceptional performance. When done right, incentive compensation: Pushes all employees to give their very best. MORE
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. These are often the same managers who are paying employees more than range maximum. MORE
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. MORE
Make a real effort to integrate business information into your explanations to employees of compensation decisions, so people understand the link between business performance and compensation. It's that time of year again. MORE
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. MORE
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. MORE
A study by Willis Towers Watson found that only 20% of employers in North America actually believe merit pay is effective in driving high performance. Traditionally money was seen as the main incentive used to motivate employees. Higher productivity results in higher salaries and bonuses. How managers can use intrinsic motivators Douglas McGregor’s XY Theory was one of the first to make the distinction between the use of extrinsic vs intrinsic motivators. MORE
Editor's Note: Classic insights - and some great quotes - on risk aversity versus risk leveraging in pay management via Jacque Vilet. " Just as top management finds it critical to balance the risk and reward of their strategic decisions, HR also needs to incorporate risk into their thinking. MORE
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. MORE
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! MORE
When executed effectively, bonus administration can incentivize improved performance. However, mastering bonus pay isn’t always easy. Every organization is different, so the bonus program that works in one company may not be ideal for yours. MORE
According to behavioral economists, we have a lot to learn about designing cash incentives. They did for Yale , which passed the findings on to their School of Management alumni.). It is common with MBOs, sales programs and classic incentive designs. MORE
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. MORE
3 Performance Management Best Practices for Healthcare Sep. Too often healthcare workers are simply told “you need to do the following 25 things,” says John Lutz, Principal at ECG Management Consultants , consistently rated as one of the top healthcare consultancies in the U.S. MORE
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 MORE
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. MORE
15Five
SEPTEMBER 26, 2018
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.
15Five
AUGUST 28, 2018
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
Compensation Cafe
FEBRUARY 5, 2019
Could it be that we are designing and communicating incentives for our highest performance all wrong? This study specifically looked at the impact of incentives on motor and neurological performance in high-pressure situations.
Compensation Cafe
JANUARY 3, 2019
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.
AvilarHR
APRIL 30, 2018
It’s no secret that federal government has a troubling and long-standing reputation for low employee satisfaction, engagement and performance. Why is the President’s statement causing a stir in public sector management? How Performance Management Systems Can Help.
Precheck
SEPTEMBER 13, 2018
3 Performance Management Best Practices for Healthcare Sep. Too often healthcare workers are simply told “you need to do the following 25 things,” says John Lutz, Principal at ECG Management Consultants , consistently rated as one of the top healthcare consultancies in the U.S.
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Compensation Cafe
SEPTEMBER 29, 2016
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!
Compensation Cafe
JUNE 20, 2016
When we make performance management purely rules-based the people who score best are often those who are the best at following the rules, not the best at building company value. Lately it seems like many companies are considering getting rid of performance review scores altogether.
ATD Human Capital
MARCH 22, 2016
Performance management system failure most often comes down to a lack of clear purpose. However, a lack of alignment can also derail performance management systems. Is Performance Management Aligned? Managers are usually on the hot seat for failures.
UpstartHR
NOVEMBER 24, 2014
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.
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Compensation Cafe
JULY 21, 2016
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.
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Compensation Cafe
DECEMBER 15, 2015
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.
Compensation Cafe
SEPTEMBER 14, 2016
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.
SuccessFactors
JANUARY 23, 2017
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.
HRsoft
FEBRUARY 25, 2016
Incentive compensation planning takes the concept a step further. Incentive Compensation is variable pay that is given to deserving candidates for exceptional performance. When done right, incentive compensation: Pushes all employees to give their very best.
.gif)
Compensation Cafe
FEBRUARY 1, 2018
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.”
HR Daily Advisor
APRIL 4, 2016
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.
HRsoft
OCTOBER 30, 2017
When executed effectively, bonus administration can incentivize improved performance. However, mastering bonus pay isn’t always easy. Every organization is different, so the bonus program that works in one company may not be ideal for yours.
ReviewSNAP
JANUARY 21, 2014
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.
Compensation Cafe
APRIL 17, 2017
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.
Compensation Cafe
MARCH 18, 2019
Editor's Note: Classic insights - and some great quotes - on risk aversity versus risk leveraging in pay management via Jacque Vilet. " Just as top management finds it critical to balance the risk and reward of their strategic decisions, HR also needs to incorporate risk into their thinking.
HRsoft
NOVEMBER 6, 2017
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.
HRsoft
SEPTEMBER 15, 2017
Incentive compensation is one form of the popular “pay for performance” compensation models organizations are using to foster better performance through financial rewards. Let’s take a closer look to find out whether incentivizing performance is the best choice for your company.
HRsoft
APRIL 5, 2016
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.
Compensation Force
FEBRUARY 6, 2019
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.
Impraise
DECEMBER 12, 2016
A study by Willis Towers Watson found that only 20% of employers in North America actually believe merit pay is effective in driving high performance. Traditionally money was seen as the main incentive used to motivate employees. Higher productivity results in higher salaries and bonuses. How managers can use intrinsic motivators Douglas McGregor’s XY Theory was one of the first to make the distinction between the use of extrinsic vs intrinsic motivators.
Compensation Cafe
FEBRUARY 1, 2019
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.
Compensation Cafe
JANUARY 22, 2019
According to behavioral economists, we have a lot to learn about designing cash incentives. They did for Yale , which passed the findings on to their School of Management alumni.). It is common with MBOs, sales programs and classic incentive designs.
Compensation Cafe
DECEMBER 26, 2018
In his article Evidence-Based Rewards Management in WorldatWork's Journal, Robert Greene talks about the importance of moving our profession to a more evidence-based approach. When was the last time you picked up a copy of Academy of Management Journal ?
Compensation Cafe
OCTOBER 8, 2018
Make a real effort to integrate business information into your explanations to employees of compensation decisions, so people understand the link between business performance and compensation. It's that time of year again.
Compensation Cafe
DECEMBER 19, 2018
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.
Compensation Cafe
JANUARY 16, 2019
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.
Compensation Cafe
NOVEMBER 28, 2018
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. These are often the same managers who are paying employees more than range maximum.
Compensation Cafe
SEPTEMBER 10, 2018
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.
Compensation Cafe
APRIL 23, 2015
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.
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