An article was published last week with data from Aon Hewitt and Towers Watson that showed the annual pay raise is essentially dead (and in Towers Watson’s case, bonus pools will also be underfunded). The data apparently shows that we will deliver base pay as a flat amount going forward. Increases in pay will come from incentive plans, if they are funded. Let’s cast a fond farewell to a method of pay that has existed for as long as people have been paid.
Anyone who has taken a class or performed a Google-search on performance goals has learned about the concept of “SMART” goals. The most common breakdown seems to be: S – Specific, M – Measureable, A – Attainable, R – Relevant, and T – Time-bound. We all seem to know this and yet many still seem to have problems creating successful pay for performance programs. I would like to propose a new D.U.M.B. approach that celebrates the spirit of insanity. Insanity is being defined as the repetition of doing the same thing, again and again, with the expectation of different results. If SMART goals aren’t working for you, why not try DUMB goals?
Pay for performance continues to rise. However, the failure of pay for performance is rising almost as fast. As the discussion about best practices continues, I thought I would provide a few thoughts about an approach that may work for your employees.
Usually the drive for pay for performance comes from the top of the company. “We need to have people be more productive.” “I don’t want to have to pay people that much, unless they are REALLY doing a great job.” While these are valid concerns, we must Continue reading →
In the increasingly complex business environment, it is easy to become too focused in the challenges of daily operations. To be successful, a compensation manager needs to continually improve on their ability to support their clients’ needs and improve performance. The SWOT (Strengths, Weaknesses, Opportunities, and Threats) Analysis is one tool that can help you assess your people and refine your service delivery model so that your compensation group becomes a cohesive, highly performing team. Continue reading →