by Jennifer Loftus
Smart compensation pros can use this recession as an opportunity to re-evaluate how they pay employees.
You might be surprised what you find when you start taking a close look at your compensation systems. You could discover that you haven’t been spending your merit pay budget as efficiently as you could. Now that the economy is forcing you to, you may learn that you can get better performance from employees if you’re smarter about the way you reward them.
Here are four recession-smart compensation strategies that you might decide to continue even after the economy rebounds:
1. Concentrate pay raises on your superstars. We all have A, B and even C players among our employees. Typically, we pay the all-stars more. But we don’t always give them bigger raises than the rest of the crew. We should.
If your merit budget has shrunk along with your organization’s revenues, the average pay raise is smaller, ...(register to read more)