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.

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

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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.


Possible Works

A recent Mercer 2019 Global Performance Management Study highlights the changing business scenario and the need for a more flexible and employee-oriented performance management system. What Makes a Difference in Performance Management?

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. whether employees perceive that central elements of performance management are designed well and function fairly."

Behavior Bonus: Performance Enablement


While the Kazoo Employee Experience platform is primarily driven by spontaneous, timely employee recognition — some employees want specific incentives and directions for their behavior. This is where our Behavior Bonus functionality comes in. It’s a key part of a successful performance enablement program. Using Incentives for Performance Enablement. Behavior Bonus is, in its essence, an incentive tool. Real World Performance Enablement.

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. Dan Walter is a CECP and CEP and works as Managing Consultant for FutureSense. Dan has written several industry resources including an issue brief on Performance-Based Equity Compensation.

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. Like any well-designed incentive compensation plan, Wells Fargo’s started with a strong company culture and a simple goal that required special effort. Where was the team whose counter-incentive plan was based on finding and correcting fraudulent activity on the part of plan participants?

A New Grad Schools Us on Performance Management

Compensation Cafe

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. Our performance reviews and management systems, as well as our incentive plans and reward programs must all account for the fact that human beings are doing the performing. Lately it seems like many companies are considering getting rid of performance review scores altogether.

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. Let me start with the fact that I have been interviewed a few times about this story and even I was surprised by my response to the question, “What companies in the financial world are considered to have good incentive programs?” and Jim Brennan’s Excessively Successful Incentives ). Even worse, rather than adapting the incentive plan over time.

Do Your Incentive Plans Motivate Choking?

Compensation Cafe

Could it be that we are designing and communicating incentives for our highest performance all wrong? A recent study titled “ Reappraisal of incentives ameliorates choking under pressure and is correlated with changes in the neural representations of incentives ” appears to show that the fear of losing a reward allows people to perform at the edge better than the desire for earning more award.

3 Performance Management Best Practices for Healthcare


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.

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. Each employee of Hilcorp was granted a one hundred thousand dollar Christmas bonus for their individual contributions to company success. No differentiation by title, grade, base pay, seniority, performance, race, sex, hair-color, weight or other irrelevant variables.

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. Their disapproval disappointed the corporate headquarters compensation experts tasked with the duty to faithfully but delicately comply with the incentive program guidelines supplied by the division's senior management.

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. Some opponents of incentives show the same thinking that would condemn trees because they may be shaped into spears, arrows and catapults instead of being turned into sturdy houses or inspiring artworks. Because incentives are powerful, they should be designed and implemented with great care.

Rewarding Today's Unsung Heroes: Could a "Viral" Bonus Plan Work for You?

Compensation Force

While the details on the ground at IGN Entertainment may have changed since then, their inspired peer-to-peer bonus plan brings us a great example of how we might engage employees in rewarding the heroic actions of their peers during our challenging times today. Who is in a better position to identify your company's top performers - management or their peer employees? Bonus/Incentives Pay for PerformanceThis post first ran in 2011.

Are You Thinking About Your Performance Management System Too Narrowly?

ATD Human Capital

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? While the performance review or appraisal process is usually the key point in managing performance, it is only one element of the performance management system. Managers are usually on the hot seat for failures.

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. Thousands of employees were discharged over scandalous fraudulent practices that generated illegitimate bonuses and enriched salespeople while bilking their clients.

Cafe Classic: If You Want. (The Pay Plan Edition)

Compensation Cafe

If you want to spend additional money on employee compensation without generating any impact on outcomes or behaviors, then give employees a bonus based completely on your discretion and tell them only that it is based on your judgment about what they deserve.

Money for Motivation: How Incentive Based Pay Works


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. We want to instantly think that we can drive performance or discourage behaviors through monetary incentives. Here are a few: Bonuses. Group incentives. Variable compensation tied to business performance is the same thing. This Hinges on Performance.

Why Bother Talking About Total Rewards?

Compensation Cafe

Plus, you can help them manage their time effectively by communicating a single Total Rewards calendar for benefits, performance management and total compensation. With HR building a single operating calendar for open enrollment, performance management, raises, incentive awards and development planning. Margaret O'Hanlon, CCP brings deep expertise to discussions on employee pay, performance management, career development and communications at the Café.

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.” But, if you ask the people at the very top, they will usually tell you that people shouldn’t expect to get paid on their bonus. That leaves three that don’t fit our normal incentive models.

4 Tips for 2020 Career Development

Compensation Cafe

What happens when you disappear raises, slim down bonuses, freeze salaries and/or jack up benefit costs? Many managers yearn to gussy up titles as a way of making employees feel better in a down market. Managers and employees need to be able to talk about job levels; compare skill development with competency development; identify experience in one job that can be successfully transferred to another; and so on. As you know, managers have a bad habit of over-promising.

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


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.

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


Many early-adopter organizations who jumped aboard the train to abolish employees’ performance ratings are finding themselves on a challenging journey that is characterized by two key questions: What does the elimination of ratings do to the organizational culture of high performance which is still propagated and undisputed in most of those organizations? Delegating these decisions to individual managers or to some machine-based algorithms is not the answer.

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? Do your managers see these performance measures as they really are (imperfect proxies for larger, intangible strategic constructs), or do they focus on the performance measures themselves as the ultimate goals? Managers will receive bonuses tied directly to their survey scores.

Why the Best Employee Incentive Programs Succeed


If you want to put one of best employee incentive programs in your workplace, you might need to step out of your own comfort zone and move away from cash rewards. Traditionally, employee incentives programs use cash rewards tied to a specific individual achievement. A bonus. But studies show that while cash incentives for employees’ motivation might work for a short-term boost, they can be counterproductive in the long run.

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. These are often the same managers who are paying employees more than range maximum.

9 Ways to Create the Best Possible Employee Incentive Options


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. A sincere thank-you presented with an employee incentive lets an employee know exactly what they’ve done that you value. There is no one-size-fits all employee incentive.

Why Communicate Now?

Compensation Cafe

At the end of the fiscal year, the department has information about raises which they transfer to managers who send it down the line. Talking things through using reference materials will also help everyone calm down a bit (see below) and build back her/his relationship with the manager. Because employees will see that their manager can be trusted to have insight she/he will share. Why communicate now? Aren't things bound to change before year-end salary reviews?

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. We asked participants everything from how they identify high-performing employees to how they reward those employees to what survey participants think about performance appraisals in general. Managing Shortages.

Incentive Compensation Management Software


Incentive compensation planning takes the concept a step further. Incentive Compensation is variable pay that is given to deserving candidates for exceptional performance. It includes merit based bonuses, restricted stocks, retirement plans and deferred bonus plans among other arrangements. When done right, incentive compensation: Pushes all employees to give their very best. The post Incentive Compensation Management Software appeared first on HRsoft.

5 Employee Incentive Ideas that Boost Employee Motivation


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.

Compensation Communications: Should I Say How I Feel?

Compensation Cafe

The words will need editing and the methods you are using will need adjustment if they don't: 1) transfer the knowledge you have prioritized, 2) prepare managers and employees to act on the knowledge, AND 3) inspire feelings that build engagement. Responsiveness is one of a group of competencies that will be communicated as reminders through a campaign that includes email, manager discussions and videos on the intranet.

Cafe Classic: Scenario Planning and Reward Design in an Uncertain World

Compensation Cafe

From the article: Trying to gain a better understanding of the trends shaping the competitive environment has always been critical for managers. Perhaps most notably, Royal Dutch Shell used the approach to look more broadly at the trends and developments that could impact the price of oil and develop stories that could challenge management perceptions. What might the possible scenarios mean for how we manage and reward our employees?

The Time is Now. Compensation Pros Must Rise to the Challenge.

Compensation Cafe

When the vast majority of companies have incentive programs that look very similar, but prospects that look far different, we must consider whether “market data” truly reflects our markets. Do your incentive plans promote the decisions, behaviors, and actions that truly define your success? He is a “Compensation Futurist” who works as Managing Consultant for FutureSense. Dan is also a leading expert on incentive plans and equity compensation issues. Change is hard.

Compensation Air Traffic Control

Compensation Cafe

You may have been involved in laying friends off, furloughing colleagues, cutting pay for executives, putting holds on merit increases, temporarily modifying incentive plans, marketing pricing for newly remote positions, all while working from a dining room table, teaching math, and cooking more food than an average holiday season. He is a “Compensation Futurist” who works as Managing Consultant for FutureSense.

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

3 Practices for Effective Bonus Administration


When executed effectively, bonus administration can incentivize improved performance. However, mastering bonus pay isn’t always easy. For this reason, we’ve gathered a few helpful tips to help you ensure you’re planning your bonuses to make the best possible impact on your workforce. Every organization is different, so the bonus program that works in one company may not be ideal for yours. What outcomes do you hope to achieve through bonuses?

Cafe Classic: A Few Things Economists Would Like Compensation to Know

Compensation Cafe

concepts like performance appraisal practices, bonus allocation, merit increase awards, high potential selection and, well, most of the things that we spend our time on. Performance management is the first thing that comes to mind. Or, in the case of variable pay programs, if you concentrate exclusively on the incentives for recognition purposes, eventually you won't notice that you're decimating your base salaries.