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Margaret O'Hanlon, CCP brings deep expertise to discussions on employee pay, performancemanagement, career development and communications at the Café. Her firm, re:Think Consulting, provides market pay information and designs base salary structures, incentive plans, career paths and their implementation plans.
Let's try again with a bigger [select an option: salary, sign-on bonus, incentive, equity offering, loan opportunity and, and, and].". Start now by getting yourself a copy of the popular ebook, Everything You Do (in Compensation) Is Communication @ https://gumroad.com/l/everythingiscommunication.
After all, we often don't make much of a communication effort when we award bonuses. So, you could say that they are also checking that your company's performance matches your competitors, although not deliberately. When it comes to bonuses, the understood link with business results is often sketchy, too.
Interestingly, the same survey shows that annual performancebonuses will decline slightly next year, while discretionary bonuses will increase slightly. Unlike salaries, incentives are variable and give employers much greater discretion in rewarding employees for performing at superior levels. 3 in 10 U.S.
Your trade-off program(s) should probably fall under categories like professional growth, career opportunities, work breaks, medium-term incentives and so on. Margaret O'Hanlon, CCP brings deep expertise to discussions on employee pay, performancemanagement, career development and communications at the Café.
Closing the books on merit increases may be on schedule, but there are always loose ends to clear up before you get slammed with Q1 bonus and incentive work. In true pay-for-performance philosophy, you've earned it. You may be feeling reluctant, even though you're tired. Earlier, she was a Principal at Willis Towers Watson.
I recently ran into a study on effective performancemanagement 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 performancemanagement. Procedural fairness is defined as, ". .
Performancemanagement tools have become essential to HR operations. Not only do they assist the HR department; they also help managers throughout the organization to guide their teams to success. Consider that only 2% of companies feel they have a great approach to performancemanagement. Table of Contents 1.
These are just a few of the scenarios that can happen in performancemanagement and salary discussions -- but remember that we'll be doing most of these discussions on video this year. Margaret O'Hanlon, CCP brings deep expertise to discussions on employee pay, performancemanagement, career development and communications at the Café.
Plus, you can help them manage their time effectively by communicating a single Total Rewards calendar for benefits, performancemanagement and total compensation. With HR building a single operating calendar for open enrollment, performancemanagement, raises, incentive awards and development planning.
What happens when you disappear raises, slim down bonuses, freeze salaries and/or jack up benefit costs? Experience shows that when a manager reneges on a employee's career plan, the trust level between the two is almost impossible to fix. Looks like we're in for that kind of year. Earlier, she was a Principal at Willis Towers Watson.
Remember, some companies have begun to put their differentiation efforts into incentive payments rather than salary increases. Incentive decisions can also be peanut buttered, as I'm sure you've noticed. Differentiation in incentives holds up best when different employees have different incentive goals.
Margaret O'Hanlon, CCP brings deep expertise to discussions on employee pay, performancemanagement, career development and communications at the Café. Her firm, re:Think Consulting, provides market pay information and designs base salary structures, incentive plans, career paths and their implementation plans.
Whether you are redesigning your base pay program or creating an incentive plan, it pays to learn from experienced colleagues, so I've included links to Compensation Cafe articles about each of these three best practices. Spend time understanding the nature and root causes of the performance challenges that your new plan must address.
Bonuses are paid, last year's results are old news and grand plans for this year have been signed, sealed and delivered. Wouldn't it be great to share your key dates for performancemanagement, salary discussions etc. Looking at clear skies these days? You know, that ones that never seem to make it onto anyone's dashboard.
It's time to accept that your job has changed from gatekeeper (limiting access to pay knowledge until employees are "ready") to educator (describing the nuts and bolts of salaries and incentives). Otherwise you will lose the battle of misguided data. Getting a return on your pay transparency investment.
Margaret O'Hanlon, CCP brings deep expertise to discussions on employee pay, performancemanagement, career development and communications at the Café. Her firm, re:Think Consulting, provides market pay information and designs base salary structures, incentive plans, career paths and their implementation plans.
Margaret O'Hanlon, CCP brings deep expertise to discussions on employee pay, performancemanagement, career development and communications at the Café. Her firm, re:Think Consulting, provides market pay information and designs base salary structures, incentive plans, career paths and their implementation plans.
If there is no complete definition of regular rate of pay, their lawyers ask, what if the government counts T-shirts and anniversary bonuses? SHRM is publicly supporting the DOL's proposed new rule specifying that the following are excluded from the definition of regular rate of pay: Anniversary bonuses. Discounts on gift cards.
Margaret O'Hanlon, CCP brings deep expertise to discussions on employee pay, performancemanagement, career development and communications at the Café. Her firm, re:Think Consulting, provides market pay information and designs base salary structures, incentive plans, career paths and their implementation plans.
Take another example -- you need to communicate the bad news that mid-year bonuses will not be paid because of business conditions. They may understand why there is no funding for bonuses, but they will still be disappointed. Everybody's been working full tilt. Earlier, she was a Principal at Willis Towers Watson.
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. Performancemanagement is the first thing that comes to mind. Spoiler alert -- the "laws" are not based on research but are subjective individual perceptions.
Get credit for your incentives. Many CEOs of small companies don't like to talk about incentives since they can't guarantee a yearly payout. The thing is, no good incentive plan guarantees a payout, and most large-company employees can remember years when the business couldn't fund an incentive.
Does management understand how you manage the data and do they agree with your schedule? Do you keep up with employee and manager questions and concerns? Margaret O'Hanlon, CCP brings deep expertise to discussions on employee pay, performancemanagement, career development and communications at the Café.
You may have already completed performance appraisal discussions, but performance should certainly be part of the discussion when 2014 increases and bonuses are covered with employees. Providing managers with prompts that can help them articulate their thoughts, especially if they find themselves in a tough spot.
Face it, those auto-messages provided by compensation and performancemanagement administration systems don't qualify as communications, so don't even try to count them in. What if you built a FAQ library that helped managers think through salary increase decisions (as well as explain the decisions to their employees)?
New incentive coming up next year? Performance measures are changing, that means employees' current behaviors/habits need to be readjusted, or even rejected, for the new goals to be met or exceeded. New business goals coming up next year? Employees need to change their priorities and the work habits they've formed to achieve them.
You may have already completed performance appraisal discussions, but performance should certainly be part of the discussion when 2014 increases and bonuses are covered with employees. Providing managers with prompts that can help them articulate their thoughts, especially if they find themselves in a tough spot.
Performancemanagement creates a constricted atmosphere that just doesn't work in this situation. And whose performance is -- yes -- being watched closely by your team. Incentives. Research shows that many employees see annual incentive payments as a gift that signifies their relationship with the company.
Performance review. Incentives. manager's briefings. manager's tools. performancemanagement administration system. Have some fun imaging what it would be like to have the biggest budget in the world, the best technology, the most curious and supportive employees and managers. Annual planning.
Here are three tips you can use any time during the year, but most of all during merit increase and incentive award periods. A champion is someone who will guide and influence the progress of your communications, especially with senior management and department heads. Get yourself a champion (or champions).
Far more favorably than if they just know the new merit targets or performancemanagement process, no matter how much better you have made them. Margaret O'Hanlon, CCP brings deep expertise to discussions on employee pay, performancemanagement, career development and communications at the Café.
salary increases and bonuses with flimsy links to everyday work, it's hard to engage people beyond job security unless you have career development alternatives to offer. Margaret O'Hanlon, CCP brings deep expertise to discussions on employee pay, performancemanagement, career development and communications at the Café.
Margaret O'Hanlon, CCP brings deep expertise to discussions on employee pay, performancemanagement, career development and communications at the Café. Her firm, re:Think Consulting, provides market pay information and designs base salary structures, incentive plans, career paths and their implementation plans.
So what if the tools you are using are the same -- your performancemanagement program, merit raises and bonuses? Your business is in a different place, your marketplace has changed and your managers are focused on different issues. How can the manager be prepared? Three more tips?
I agree with the performance rating I received on my last performance appraisal. I know what I can do to influence the size of my incentive. Margaret O'Hanlon, CCP brings deep expertise to discussions on employee pay, performancemanagement, career development and communications at the Café. Don't overdo it though.
And usually the specific issue is merit increases and/or bonuses. Margaret O'Hanlon, CCP brings deep expertise to discussions on employee pay, performancemanagement, career development and communications at the Café. the recognition that employees genuinely depended on just doesn't show up. It will pay off.
If they are managed right, these employees will appreciate the opportunity to demonstrate a breadth of skills and leadership abilities -- and they'll enjoy receiving recognition for "pitching-in.". Then there's the "little" problem of overpaying merit increases or bonuses to "make restitution" to employees in blended jobs.
A short example of the takeaway lesson -- when it comes to reporting incentive results, it''s more likely to be perceived as substantively positive to say that you''ve achieved 96% of goal that to say you missed the goal by only 4%. Industrial psychologists know that this always needs to be factored into their research protocols.
Margaret O'Hanlon, CCP brings deep expertise to discussions on employee pay, performancemanagement, career development and communications at the Café. Her firm, re:Think Consulting, provides market pay information and designs base salary structures, incentive plans, career paths and their implementation plans.
As the SHRM article reminds us, you may currently offer salaried employees incentives, more time off or levels of benefits not available to your non-exempt employees. She brings deep expertise in compensation, communications and leadership to topics like the CEO Pay Ratio and performancemanagement discussions at the Café.
If you're an HR office of one, busily juggling everything from beneficiary forms to incentive awards, it's hard to believe that you share any pressures with other HR managers. Margaret O'Hanlon, CCP brings deep expertise to discussions on employee pay, performancemanagement, career development and communications at the Café.
If you are going to make sure your compensation and performancemanagement programs are procedurally fair , you've got research, analysis and strategy development to complete. It's time to have a modular communications plan that can be customized to a manager's needs. My recent blog encouraged setting this goal for your program.
Margaret O'Hanlon, CCP brings deep expertise to discussions on employee pay, performancemanagement, career development and communications at the Café. Her firm, re:Think Consulting, provides market pay information and designs base salary structures, incentive plans, career paths and their implementation plans.
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