pay for performance

Salary Compression and Pay for Performance

If a current employee is performing at or above expectations, then their salary should increase to more than what their new colleague is making.

One of the biggest compensation challenges during times of suppressed budgets around compensation increases (i.e. the standard 3 percent) centers around salary compression. This occurs when new employees or recently promoted workers receive a salary similar to or higher than their more experienced colleagues in the same position. With some market rates moving faster than others, this can inevitably happen…

Tie Comp and Performance Management to Attract and Keep Employees

A pay for performance system looks not only at your performance level but also at your compensation level as well.

A pay for performance program can be instrumental to a company’s talent strategy. An effective compensation strategy is integral in attracting new talent and retaining and motivating the best performers. Yet, if not done appropriately, the way in which a company compensates its employees can lead to a number of negative effects. Compensation should never be a guessing game or…