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. Alan Colquitt is one of the world’s greatest experts in the field of HR and performance management. Courtney: In your book, Next Generation Performance Management , you differentiate between Performance Management 1.0 (PM

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.


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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.

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 HiPos.

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?

Cafe Classic: Is Pay a Critical Part of Culture or Not?

Compensation Cafe

Typically, the statistics we read about in workplace surveys are intuitive. Employees that took that survey were asked to rate the three most important attributes of workplace culture. So what is driving the results from employees, and what should HR and managers be doing about it?

Competitive Market Surveys Rarely Produce Identical Pay

Compensation Cafe

The reasons may be seem obscure to outsiders, but they are clear to those who follow the arcane practices of the wage and salary management field. Each employer using an identical survey published by a reputable professional analytical organization ends up with its own unique number as the appropriate target. Compensation professionals love to cite “the open market,” while being less eager to admit that every market is different.

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.

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.

Thank You for 10, 360 and 180,000 Reasons

Compensation Cafe

First, I think we all want to be better and perform at our potential. He works as Managing Consultant for FutureSense. He has three metaphors for every occasion and is a leading expert on incentive plan and equity compensation issues. This post is about recognition.

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.

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.

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. What might the possible scenarios mean for how we manage and reward our employees?

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.

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.

Employee Satisfaction: Using Surveys Effectively


Many companies today conduct employee satisfaction or employee engagement surveys. Some do an annual or bi-annual survey. Others do regular spot surveys. Here are four best practices to get meaningful information from employee satisfaction surveys and boost employee engagement in the process. Act on the Feedback from Employee Satisfaction Surveys. Set a Regular Cadence for Surveys. This single step can boost participation in employee satisfaction surveys.

Survey 100

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

Compensation Cafe

Ann Bares is the Founder and Editor of Compensation Café, Author of Compensation Force and Managing Partner of Altura Consulting Group LLC , where she provides compensation consulting and survey administration services to a wide range of client organizations.

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. Base with a 31.69% target incentive level, based on the fourteen individually weighted metrics recently established by our big data mining exercise in conjunction with our actuarially-modeled best-case scenario using the recent new pricing model from that academic team at MIT.”. He works as Managing Consultant for FutureSense. September 5, 2028.

HR Trends: Employee Feedback, Pulse Surveys, and Analytics


We’re also seeing an explosion in continuous employee feedback , pulse surveys , and people analytics tools designed to improve the employee experience. Tara asked why we didn’t offer a feature that provided incentives to employees for their healthy choices through our recognition and rewards engine. The leadership team was listening, and in short order, one of our most popular features, the Behavior Bonus, was born. Confidential, compact form prevents survey fatigue.

Cafe Classic: Managers Can't Use Salary Surveys Wisely, and Other Urban Myths

Compensation Cafe

In today's Classic, Margaret O'Hanlon digs into our beliefs about what we can and cannot trust our managers to handle on their own, using the example of a particular company that does things differently. Managers are, frankly, too self serving to be trusted. When hiring people, managers just want to grab them with money. That's right, they give them survey results. Another important detail is that all employees are eligible for incentives.

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

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


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. As long as organizations think they are getting the results they need, the problems with performance management will likely be easy to dismiss. Bersin IMPACT Event Performance Management

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 similar philosophy of inquiry is touted in Dan and Chip Heath's Switch , my favorite change management book.

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. Base Salaries Compensation Communication Compensation Philosophy Incentives/Bonuses Pay for Performance Performance Management Total Rewards

Cafe Classic: On Paying People to Overcome Hurdles the Organization Puts in Front of Them

Compensation Cafe

Screwy organization structure, reporting relationships, job design and policies and procedures (to name a few) create such issues that leadership is "forced" to request your assistance in designing an incentive plan to fix the resulting problems. This is our call to Design Incentives Responsibly. Management says that they are going to put in an incentive plan to improve productivity. Hint: Incentive pay may not be the answer.). Incentives are a powerful tool.

Cafe Classic: Stop Spreading the Peanut Butter and Start Feeding the Eagles

Compensation Cafe

Editor's Note: Classic insights - and some great quotes - on risk aversity versus risk leveraging in pay management via Jacque Vilet. " I wrote an article here six months ago on the need to differentiate among employee groups how companies should manage their workforce like a portfolio of investments. Here’s what he says: "HR wants to treat most employees the same way, and they spend considerable time trying to defend or fix poor performers, taking on the St.

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. Feedback can come via data or metrics that measure the impact of the treatment on individuals in the group; this could include things like voluntary turnover, engagement survey results, productivity or operating statistics, etc. The feedback might also be drawn through more targeted survey efforts, through interviews or focus groups.

Employee Motivation: Why Bonuses May Not Be the Answer


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.

Stuff Changes

Compensation Cafe

She has already surpassed the quota demanded last year.” Performance output objectives valid in prior periods are irrelevant going forward. What do you mean, the CEO bonus plan needs to be modified?” The executive compensation formula acceptable at a small startup operation in its early days before a steady positive income flow has been established may become unconscionable later. Every element of human resource management is time-sensitive. S tuff changes.

The Consultant Dilemma: Make Your Own or Go with Store-bought?

Compensation Cafe

Margaret O'Hanlon, CCP brings deep expertise to discussions on employee pay, performance management, career paths and communications at the Café. Her firm, re:Think Consulting, provides services that include market pay information, base salary structures, incentive plan design, career paths and new plan implementation. Much of what we do in compensation is logical and systematic. Once you know the steps for a process or a report, why would you spend money on a consultant?

Only Cash Buys the Confidence Needed for Non-Cash Appreciation

Compensation Cafe

I venture to suggest that attitude surveys showing a lack of appreciation for non-cash entitlements probably reflect an underlying malaise about pay. Even senior managers may overestimate the utility of well designed non-cash programs when their subordinates lack confidence in the base wage or annual salary portion of the total reward system. . When base pay is inadequate, no amount of non-cash total reward elements can fill that gap.

If Money Were the Solution.

Compensation Cafe

James (Jim) Brennan was Senior Associate of ERI Economic Research Institute , the premier publisher of interactive pay and living-cost surveys. Base Salaries Benefits & Perquisites Board of Director Compensation Compensation Communication Compensation Philosophy Executive Compensation Gender Equity Incentives/Bonuses International Compensation Performance Management Recognition Regulations & Public Policy Sales Compensation Surveys Total Rewards

Cafe Classic: Happy Holidays & an Evidence-Based New Year!

Compensation Cafe

Editor's Note: Although Big Data, Analytics and now Artificial Intelligence have arrived, and evidence-based management (seeking and using evidence to make better-informed decisions) is mainstream practice, there are still many of us (in HR and even in the field of rewards) who aren't where we should be in embracing this new reality. When was the last time you picked up a copy of Academy of Management Journal ? Evidence abounds that evidence-based management is our future.

Swift and Certain Consequences Are More Effective

Compensation Cafe

Instead of passively surrendering to the easy temptation to cravenly abandon the fight for excellence in our trade, we can stand behind this shield of credible facts and launch new improved initiatives to better manage human resources. A prolific writer (author of the Performance Management Workbook ), speaker and frequent expert witness in reasonable executive compensation court cases, Jim also serves on the Advisory Board of the Compensation and Benefits Review. .