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Variable pay strategy: Teach workers to ‘manage the boss’

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in Employee Benefits Program,Human Resources

by Bruce Tulgan

The biggest trend in employee compensation is pay-for-performance. In many organizations, less employee pay is fixed; more is contingent on performance. That’s great … when it works.

Pay-for-performance is effective only when managers spell out for each employee exactly what he or she must do to get paid more or reap perks like flexible scheduling.

In reality, too few managers do what’s necessary to make pay-for-performance work. They don’t take the time to outline expectations for every task for every employee. They don’t bother monitoring performance and don’t “keep score” by tracking whether the employee meets deadlines, follows instructions or contributes a fair share.

It doesn’t have to be that way.

Solution: Teach the employees to “manage the boss.” Impress upon both managers and employees that supervision is a two-way relationship. If a manager isn’t making it clear what an employee needs to do, then the...(register to read more)

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