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Traditional Pay vs. Strategic Pay

May 1, 1999
Related Topics: Compensation Design and Communication, Variable Pay, Featured Article
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Traditional Pay vs. Strategic Pay
Traditional Pay Strategic Pay
  • Supports command and control management and traditional job hierarchies.
  • Designed with business objectives and strategic plan.
  • Driven by duties and responsibilities in job description; focuses on tasks.
  • Motivates and rewards critical behaviors; focuses on contribution.
  • Highly structured design with little room for flexibility.
  • Flexible design adapts to changes in business priorities.
  • Tightly controlled communication, "need to know" basis only.
  • Openly communicates shared vision, performance expectations and success.

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