Employers today are facing some of their most difficult decisions when it comes to one of their most important asset: their employees. Layoffs, salary and retirement plan freezes, pay cuts, healthcare benefit reductions - nothing is off the table in this recession as companies look to cut costs. Unfortunately, when faced with difficult decisions, employers often focus on one facet of total compensation instead of making a total analysis. Despite the constant barrage of bad economic news, our economy will rebound. To emerge strong and retain their best people, companies need a total compensation strategy that rewards top performers while effectively allocating limited financial resources. This program has five different scenarios all with something different. If you look at programs I and II you see that it is wanted more by the older employees. Program III is really not a plan for anyone and program IV and V are more for each the employee and the managers to give input so they can succeed. Getting it right
It takes a considered approach to identify the activities that will have the greatest impact on the company’s performance and focus incentives accordingly. Another important tactic is to change the incentives and offer frequently, to keep them fresh and exciting and to run short term “one-time‟ offers to encourage bursts of effort at critical times. Timing is also a critical factor. The greatest productivity is gained when the desired behavior is rewarded immediately and unexpectedly rather than waiting for traditional times such as Christmas or other holidays. The next consideration should be to establish and manage targets. In order to sustain morale and increase productivity, targets must always be set at a level which is challenging, yet achievable. This may mean being prepared to lower overall expectations of performance during tough economic times. Communicate
The structure and benefits of...