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I am currently trying to revamp our organization's performance management process to a more formal one that is aligned with company strategy and goals. I am basically starting from scratch with job descriptions, new evaluations and performance measures. My question is, how do I get the executives to see the importance of the connection between rewards and performance? Currently, they do not want to commit to traditional merit increases that would be tied to the performance review, but would rather provide a cost-of-living increase and then provide a bonus at the end of the year. The issue is that when they did this last year, people were very disgruntled with the fact that they didn’t get raises and I was frustrated because the reward that was received wasn’t tied to any performance measurement—it was truly discretionary.
——I Hate Discretion, director of human resources, construction, Rockville, Maryland
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