• LinkedIn
  • YouTube
  • Twitter
  • Facebook
  • Google+

5 steps for starting a pay-for-performance system

by on
in Leaders & Managers,Performance Reviews

Most organizations believe they do pay for performance. They don’t. If they did, a few people would get lots of bonuses and high raises, while others would get nothing extra.

Does that sound like your organization? Didn’t think so.

If you’re committed to starting a true pay-for-performance system, you’ll want to ease into it with lots of crystal-clear communication. Here are five ways to get started:

1. Tell employees how much of a raise they will get if their work is distinguished, excellent or simply proficient.

2. Establish accurate performance appraisal systems, and train supervisors in appraisal and feedback skills.

3. Know what your employees want. Money is the most appreciated reward, but time off and public thank-yous are a close second. Older workers appreciate different rewards than young colleagues.

4. Budget for the change. Setting an average raise isn’t enough. You need separate pots of money to cover merit increases, adjustments in case of market changes, incentives and appreciation.

5. Communicate your new plan so everyone knows what to expect—and what to do to earn the most money.

Like what you've read? ...Republish it and share great business tips!

Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...

We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.

The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.

" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/12366/5-steps-for-starting-a-pay-for-performance-system "

Leave a Comment