PERFORMANCE BASED PAY: PART 1

performance-based-payObjectives of performance based pay

Developing a Performance Based Pay (also called Pay for Performance) philosophy starts with an organization clearly identifying what it wants to achieve with it.  Here is an example of the three objectives that a Trinity Consultant helped a company to establish:

1)    Be consistent with & reinforce the values of the company

2)    Recruit and retain the highest quality employees

3)    Significantly differentiate rewards provided based on the importance of the contributions at three levels:

  • Individual
  • Team
  • Company

➡ Your Performance Based Pay objectives should be a sub-set of your overall compensation philosophy.

Elements of performance based pay

A well designed Performance Based Pay plan recognizes that rewards can be in the form of the following:

  • Annual pay increase (merit increase)
  • Short-term incentive (annual performance bonus)
  • Long-term incentive
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    • This can take a variety of forms, including in both publicly & privately owned companies

HOW TRINITY CAN HELP?

Trinity’s Team has the experience and expertise to work with your organization (doing as much or as little as you need from us) to develop, communicate & implement a Performance Based Pay plan.

 

For more information:

You have HR opportunities…Trinity has paths forward!

Posted in Compensation & Performance Management