Redesigning Compensation Strategy
We are rethinking our compensation strategy and calling it "Pay for Performance". We want to purchase salary surveys, price our jobs to the market (I know that's a moving target), and rethink our salary bands. Does anyone have experience with this & advice to lend?
Thanks for any examples and insights you may have - Sara
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A former company I worked for used Gartner to supply some of their compensation data and depending on the roles in your org. you could use the BLS (which is free).
In a pay for performance model, I would just be sure that the goals or metrics are attainable or measurable. If not, it won't feel like much of an incentive at all and could be perceived as unfair.
Here is an article I found that highlights the advantages and disadvantages. https://smallbusiness.chron.com/advantages-disadvantages-payforperformance-policies-44264.html
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Alysa Southall This is great - I'll share this article with my team!
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Hi Sara! I have a great resource for you. Susan is a VP of Comp at a large international organization and often talks to folks in organizations like yours who are just looking for advice and someone in the know to answer basic questions and trends. She's actually given workshops on comp - she lives and breathes comp ... go figure ! :-) let me know if you want me to connect you. darlene@HRPIInc.com Darlene Mack, HR Partners
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I recently finished a market study for our hourly roles. We used Economic Research Institute for the salary surveys. I corroborated the data there with other market indicators like job postings and feedback from candidates and exiting employees. I don't have experience with a pay for performance model.
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Hi Sara! We use a Pay for Performance model and use Payscale to help create recommended wage increases based on performance and where the employee is relative to the target in the market (we do every job individually but you could do the same type of thing with salary bands if you wish).