薪酬管理工具与技术分析英文版课件

SalaryReviewGuidelinesGuidelinesonthedistributionofincrements anattempttoovercomethevaryingstandardsofjudgmentleadingtoan‘allmyducksareswans’approachtorewardingstaff.Thedistributionscalemayberelatedtoaguidelinelikethis:

Assessment

Increment(%)

Distribution

A–outstanding 9%–10% 10% B–good 7%–8% 20% C–satisfactory 4%–6% 50% D–needsimprovement 0% 10% E–unsatisfactory 0%

10%SalaryReviewGuidelinesGuidel1SalaryReviewGuidelinesGuidelinesonratesofprogression managersarehelpedtoplansalaryprogressionbybeinggivenanindicationofthenumberofyearsitshouldtakestaffatdifferentlevelsofperformancetoreachthetopofthegradeand,inzonesofsalaryrange,thelimitswithintherangewhichcanbereachaccordingtotheirperformance.

Assessment

LimitInGrade

TypicalLength

Learningzone 1to3years 2years Performingzone 4to6years 5years Exceedingzone 2to4years 3years - SalaryReviewGuidelinesGuidel2SalaryProblemsAbsorbingmarketratespressures

ariseswhengeneralandindividualsalaryreviewshavenotenabledthecompany’ssalarylevelstokeeppacewithincreaseinmarketrates. itisexacerbatedifthecompanyisexpandingandiscompelledtoobtainkeystaffwhoareinshortsupply.Wideningdifferentials

differentialsarewideningbetweenandwithincompaniesinthefollowingareas: -betweenhigh-andlow-payingorganizations–thevariations inprosperitybetweendifferingsectorsofindustryand commerceandbetweenregionsaremajorcontributorstothis problems. -betweencompaniespayingbonusesorincentivesandthose payingstraightsalaries.

SalaryProblemsAbsorbingmarke3SalaryProblems -betweentopandmiddlemanagementwithincompanies– thisispartlyincentiveled -betweenexecutivesrecruitedbysearchandthosewitha one-companycareer.Performancepay tendtofavourthefewwhoseresultscanbemeasured. merit-assessmentaretoooftenbasedonsubjectiveandbiasedjudgments. canbeavoidedonlybyintensivetrainingofassessorsandbycarefulmonitoringoftheappraisalscheme.SalaryProblems -betweentop4SalaryProblemsStaffreachingthetopoftheirsalaryleague

staffreachingthetopoftheirsalaryrangemayfeeldemotivatediftherearenoprospectsforpromotion itispossibletodealwiththisproblembyintroducingontopofthenormalsalaryrangeapremiumzonewhichisreservedforoutstandingstaffwhosepromotionisblocked.Startingsalaries

theproblemofstartingnewstaffathigherratesthanexistingemployeesshouldbeminimizedifinternalsalarylevelsareregularlyreviewedincomparisonwithmarketrates.SalaryProblemsStaffreaching5SalaryProblemsDeterioratingjobevaluationschemes

theschememaynothavebeencontrolledproperly,sothatgradedriftoccursthroughunjustifiableupgradings. schememayhavelostcredibilitybecauseitnolongergivesacceptablesolutions. administrationmayhavebecomesobureaucraticthatthetimetakentoproduceanswersisundulyprolonged. thesolutionistomakeadeterminedefforttotightencontrolsandspeedupadministration,makingonlyminormodificationstothescheme.SalaryProblemsDeterioratingj6ObjectivesofPerformance-RelatedPay(PRP)Motivateallemployees,notjustthehigh-flyers.Increasethecommitmentofemployeesbyencouragingthemtoidentifywithitsmissionandvalues.Reinforceexistingculturesandvaluestofosterhighlevelsofperformance,innovationandteamwork.Helptochangecultureswheretheyneedtobecomemoreperformance-orientedandresults-oriented;orwheretheadoptionofothernewandkeyvaluesshouldberewarded.Discriminateconsistentlyandbeequitableonthedistributionofrewardstoemployeesaccordingtotheirperformanceresultsandcontributions.ObjectivesofPerformance-Rela7ObjectivesofPerformance-RelatedPay(PRP)Deliverapositivemessageaboutperformanceexpectationsofthecompany–focusesattentiononkeyperformanceissues.Directattentionandendeavourbyspecifyingtheorganization’sperformancegoalsandstandards.Emphasizeindividualperformanceorteamworkasappropriate.Improvetherecruitmentandretentionofhigh-qualitystaff.PRPcostswillbeinlinewithcompanyperformance.ObjectivesofPerformance-Rela8KeyFactorstoConsiderWhenIntroducingPRPMatchingtheculture successfulPRPschemesneedtomatchthecultureandcorevaluesoftheorganization.LinkingPRPtobusinessstrategy thefocusneedstobeonstrategicbusinessissueswhichemergefromthebusinessplanningprocess.Balancingquantitativeandqualitativemeasures whilemostPRPschemesrelyonquantitativemeasuresofperformance,qualitativefactorsneedtobeintroducedforthemeasurementofindividualbehaviouregbalancedscorecardsTheneedforflexibility flexibilityinmaking‘milestone’paymentswhichconveytherightmessagesforthefuture.Theneedtopromoteteamwork theimportanceofteamworkshouldberecognizedinstructuringtheschemeanddefiningcriticalsuccessfactorsandperformanceindicators.KeyFactorstoConsiderWhenI9KeyFactorstoConsiderWhenIntroducingPRPTheneedtoavoidshort-termthinking settinglong-termaswellasshort-termgoals,anddiscussingshort-termobjectivesintheiroverallcontext.Involvementinthedesignprocess designingPRPschemesshouldbeaniterativeprocess:tryingandtestingideasonmeasuresandstructureswiththosewhowilleventuallybeinvolvedinascheme.Gettingthemessageacross alltypesofPRPareverypowerfulformsofcommunication.Togettherightmessagesacrossforanyscheme,onemustmakekeydecisionsonthefollowing:

Howcantheschemeachievethebestpossiblelaunch? Isitbettertogivenopay-outratherthanalowpay-out? Whatisthebestpsychologicalmomentforpay-out? Whatcommunicationsshouldbeusedtogainmaximum motivationalimpactfrompayment? Howshouldcommunicationsbehandledwhenthescheme requireschanges?KeyFactorstoConsiderWhenI10CompetencebandsExcellentGoodSatisfactoryPerformanceLevelsPerformingLearning

NewEntryProfessional

CompetentProfessional

ExperiencedProfessional

CompetenceandPerformance-RelatedPayCurveSalary($)ExceedingCompetencebandsExcellentGoodS11Directlylinkindividualperformancewithsalaryprogression.Provideindividualizedprogressionrates.Recognizeincreasingcompetencegainedthroughexperience.AdvantagesofindividualMeritPaymentSchemeDirectlylinkindividualperfo12DisadvantagesofIndividualMeritPaymentSchemeDependentonthequalityofperformanceappraisal;whichcanbearbitrary,subjectiveorinconsistent.Unlesscarefullyconceivedandmanaged,itcandemotivatepeoplewho,althoughnotbedeliveringspectacularresultsarestillimportant.Meritpayment,asdistinctfrombonuses,createextrapayrollcostswhenbenefitssuchaspensionsarerelatedtobasepay.Ameritpaymentis,ineffect,apermanentincreaseinsalary,yetthequalityofperformanceinfutureyearsmaynotjustifythispayment.Meritpaycanresultinanupwarddriftinpayrollcostswithoutacommensurateimprovementinperformance.Meritpayiseffectiveasamotivatoronlyifrewardsareclearlyrelatedtoperformanceandareofasignificantvalue.DisadvantagesofIndividualMe13SalesIncentivePlanBusinessObjectivesMarketingStrategySalesStrategy&CoverageModelSalesJobDefinitionQuotaandCreditingCompensationPlanDesignSalesPlanImplementationTheSalesPlanSalesIncentivePlanBusinessO14TotalCompensationArchitectureBaseSalary/

FixedPayVariableFixedTargetSalesIncentiveforQuotaAchievementProfitSharingRecognitionAcceleratedIncentivesforQuotaOver-achievementTotalPotentialRewardsPerformance$EarningsFAT/MBOStockOptions**Selectiveusebasedonpositionandperformance,competencyandfuturegrowthpotentialAbovequotaachievement+=TotalCompensationArchitectur15IncentiveSchemesForSalesStaff

Whereitisfeltthatsalesstaffneedtobemotivatedbyanincentivecommissionschemethemajorityofcompaniesfindthatthebestapproachisabasiccommissiononsalesvolumeor,inmoresophisticatedfirms,onthecontributiontofixedcostsandprofitsofthesalesofeachproductgrouporproduct.Thestandardcommissionistypicallysetataboutone-thirdofsalarytoprovideanoticeableincentivewithoutadverselyaffectingfeelingsofsecurity.Asuccessfulsalescommissionplanshouldsatisfyallthecriterialistedaboveforbonusschemes.Butitisparticularlynecessarytoensurethefollowing:IncentiveSchemesForSalesS16IncentiveSchemesForSalesStaff

A)Therewardisfairinrelationtotheeffortsofthesalesrepresentative.Thismeansthatattentionhastobepaidtosettingandagreeingrealisticandequitabletargets,makingallowancesforspecialcircumstancesoutsidethecontrolofthesalesrepresentativewhichmightaffectsales,andsplittingcommissionfairlywhenmorethanonepersonhascontributedtothesale;B)Theschemedirectssaleseffortinaccordancewithmanagement’spolicyontheproductmixanddoesnotencouragetherepresentativetoconcentrateonwhatiseasiesttosell;C)Theschemedoesnotencouragehighpressuresellingwhichresultsinanunacceptablelevelofreturns,cancellationsandcomplaints;D)Theschemedoesnotencouragerepresentativestoneglecttheirindirectsellingactivities,suchasservicingcustomers.IncentiveSchemesForSalesS17CriteriaforSuccessofIncentiveSchemeItshouldbeappropriatetothetypeofworkcarriedoutandtheworkersemployed.Therewardshouldbeclearlyandcloselylinkedtotheeffortoftheindividualorgroup.Individualsorgroupsshouldbeabletocalculatetherewardtheygetateachofthelevelofoutputtheyarecapableofachieving.Individualsorgroupsshouldhaveareasonableamountofcontrolovertheireffortsandthereforetheirrewards.Theschemeshouldoperatebymeansofadefinedandeasilyunderstoodformula.Theschemeshouldbeproperlyinstalledandmaintained.Provisionshouldbemadeforcontrollingtheamountspaidtoensurethattheyareproportionatetoeffort.Provisionshouldbemadeforamendingratesindefinedcircumstances.CriteriaforSuccessofIncent18IndividualIncentiveSchemesStraightpiece-work paymentofauniformpriceperunitofproduction. canbeexpressedintwomainforms:

-moneypiecework -timepieceworkDifferentialpiecework thewagecostperunitisadjustedinrelationtooutput.IndividualIncentiveSchemesSt19IndividualIncentiveSchemesMeasureddaywork

thepayofemployeesisfixedontheunderstandingthattheywillmaintainaspecifiedlevelofperformance,butthepaydoesnotfluctuateintheshorttermwiththeirperformance. thecriteriaforsuccessinoperatingitarethefollowing:totalcommitmentofmanagement,employeesandunions.aneffectiveworkmeasurementsystem,andefficientproductionplanningandcontrolandinventorycontrolprocedures.theestablishmentofalogicalpaystructurewithappropriatedifferentialsfromthebeginningofthescheme’soperation.themaintenanceofgoodcontrolsystemstoensurethat correctiveactionistakenquicklyifthereareanyshortfallontargets.IndividualIncentiveSchemesMe20GroupIncentiveSchemeProvideforthepaymentofabonuseitherequallyorproportionatelytoindividualswithinagrouporteam.Bonusisrelatedtotheoutputachievedoveranagreedstandardortothetimesavedonajob.Groupbonusschemeareinsomerespectsequivalenttoindividualincentiveschemes.Itencouragesteamspirit,breaksdowndemarcationlines,andenablesthegrouptodisciplineitselfinachievingtargets.Potentialdisadvantagesarethatmanagementislessincontrolofproduction–thegroupdecideswhatearningsaretobeachievedandcanrestrictoutput.GroupIncentiveSchemeProvide21DesigninganIncentiveSchemeHowperformancewillbemeasured.Theemployeeswhowilltakepartintheschemeandwhowillthereforehavepartoftheirpaydirectlylinkedtotheirownperformanceorgroup.Theemployeeswhowillnottakepartintheschemeandhowtheywillbecompensated.Whetherornottheschemewillbeanindividualoneoronelinkedtogroupperformanceorrelatedtoplantperformance.Whetherthebonuspaymentswillberelatedtobasicpay.Theproportionofpaywhichcanbeearnedasbonus.DesigninganIncentiveSchemeH22DesigninganIncentiveSchemeThefullbasicrate.Therelationshipbetweenoutput/effortandreward,egtheextenttowhich,ifatall,thereisadifferentialbuiltintotheschemewhichsharestheresultsofhigherproductivitybetweenthecompanyandtheworkers.Thebasisuponwhichemployeesnotearningbonuseswillbepaid.Thetimingsofbonuspaymentsandthelapseoftimebeforepaymentsaremade.Thearrangements,ifany,toalleviatetheproblemsoflargefluctuationsinbonuspayments.ThemethodstobeusedtomaintaintheschemeandtoinformemployeesoftheirearningsDesigninganIncentiveSchemeT23AimsofBonusSchemesTheprincipalaimofabonusschemeistoprovideanincentiveandarewardforeffortandachievement.Executivebonusschemeslinkedtocompanyprofitscanalsoaimtomakeseniormanagersfeelthattheirpersonalprosperityislinkedtotheperformanceoftheircompanyorunit.Bonusschemesaresupplementarytobasicsalaryandaremostappropriatewheretheyapplytoentrepreneurialtypessuchaschiefexecutives,marketingmenandsalesstaffwho,itisassumed,willstriveformaterialreward,andwhoseresultsuponwhichtheirbonusdependscanbeclearlylinkedtotheirpersonaleffortsandachievements.AimsofBonusSchemesTheprinc24BonusSchemesCriteriaTheamountoftheawardreceivedaftertaxshouldbesufficientlyhightoencouragestafftoacceptexactingtargetsandstandardsofperformance.Standardbonusesshouldnotbelessthan10%ofthebasicsalaryand,ifaneffectiveincentiveiswanted,thestandardbonusshouldbearound20%to30%ofsalaryTheincentiveshouldberelatedtoquantitativecriteriaoverwhichtheindividualhasasubstantialmeasureofcontrolTheschemeshouldbesensitiveenoughtoensurethatrewardsareproportionatetoachievementsTheindividualshouldbeabletocalculatetherewardhecangetforagivenlevelofachievementBonusSchemesCriteriaTheamou25BonusSchemesCriteriaTheformulaforcalculatingthebonusandtheconditionsunderwhichitispaidshouldbeclearlydefinedConstraintsshouldbebuiltintotheschemewhichensurethatstaffcannotreceiveinflatedbonuseswhichmaynotreflecttheirowneffortsTheschemeshouldcontainprovisionsforaregularreview,say,everytwoorthreeyears,whichcouldresultinitsbeingchangedordiscontinuedTheschemeshouldbeeasytoadministerandunderstand,anditshouldbetailoredtomeettherequirementsofthecompanyBonusSchemesCriteriaTheform26ExecutiveBonusSchemes

Thereareinnumerableformulaeforexecutivebonusschemes,andeachcompanymustadoptonewhichsuitsitsowncircumstances.ThesimplestformulaisforapercentageoutofnetprofitsbeforetaxtobepaidPro-Ratatotheexecutive’sbasicsalary.Insomeschemes,dividendpaymentsandprovisionsforreservesaredeductedfromnetprofitsbeforethedistributionofbonusesandthereisusuallyanupperlimittotheamountofbonusthatcanbepaid.Theseschemesarecrudebutprovideadirectincentiveaslongasresultsaredirectlyinfluencedbytheactionsoftheexecutivesinthescheme.Theycangetoutofhandunlessanupperlimitisstrictlyapplied,andtheiremphasisonprofitsmaymakesomeexecutivesseekshorttermgainsattheexpenseofthelongertermdevelopmentofthecompany.ExecutiveBonusSchemes The27ExecutiveBonusSchemes

Otherschemesarebasedonaformulawhichmeasurescompanyperformance.Bonusesarepaidwhenatargetfigureisattainedincreasedfurtherasthetargetfigureisexceeded.Theincreaseofbonusmaybeonastraight-linebasis,ie.directlyproportionatetotheimprovementinresults.Alternatively,itmaybegearedeitherbydecreasingtherateofbonusthemorethetargetisexceeded,whichisgenerallyregardedaspoorpractice,orbyincreasingtherate,whichcouldbeanexpensivedevice.Astraight-lineprogressionistobepreferred. Theformulainsomeschemesisdirectlyappliedtotheexecutive’ssalary.Inotherschemes,apercentageofprofitsonanincreasingscaleisreleasedintoabonuspoolwhichisdistributedinproportiontosalary.ExecutiveBonusSchemes28BenefitsPoliciesRangeofbenefitsprovided -benefitssuchaspensionsandholidaysaremandatory;whilstpermanenthealthinsuranceareoptionalextras.Scaleofbenefitsprovided -takingintoaccountitscosttothecompanyanditsperceivedvaluetoemployees.Proportionofbenefitstototalremuneration -adecisionhastobemadeontheproportionoftotalremunerationtobeallocatedtootherbenefitswhichincurexpenditureofcashbythecompany. -thispolicydecisionisrelatedtodecisionsontherangeandscaleofbenefitsprovided.BenefitsPoliciesRangeofbene29BenefitsPoliciesAllowingchoice apolicyisrequiredontheextenttowhichthecompanyshouldallowitsemployeestochoosethebenefitstheywant.Allocationofbenefits thepolicyontheallocationofbenefitsdeterminestheextenttowhichitisdecidedthatasinglestatuscompanyshouldbecreate.BenefitsPoliciesAllowingchoi30树立质量法制观念、提高全员质量意识。12月-2212月-22Friday,December30,2022人生得意须尽欢，莫使金樽空对月。06:12:4306:12:4306:1212/30/20226:12:43AM安全象只弓，不拉它就松，要想保安全，常把弓弦绷。12月-2206:12:4306:12Dec-2230-Dec-22加强交通建设管理，确保工程建设质量。06:12:4306:12:4306:12Friday,December30,2022安全在于心细，事故出在麻痹。12月-2212月-2206:12:4306:12:43December30,2022踏实肯干，努力奋斗。2022年12月30日6:12上午12月-2212月-22追求至善凭技术开拓市场，凭管理增创效益，凭服务树立形象。30十二月20226:12:43上午06:12:4312月-22严格把控质量关，让生产更加有保障。十二月226:12上午12月-2206:12December30,2022作业标准记得牢，驾轻就熟除烦恼。2022/12/306:12:4306:12:4330December2022好的事情马上就会到来，一切都是最好的安排。6:12:43上午6:12上午06:12:4312月-22专注今天，好好努力，剩下的交给时间。12月-2212月-2206:1206:12:4306:12:43Dec-22牢记安全之责，善谋安全之策，力务安全之实。2022/12/306:12:43Friday,December30,2022相信相信得力量。12月-222022/12/306:12:4312月-22谢谢大家！树立质量法制观念、提高全员质量意识。12月-2212月-2231踏实，奋斗，坚持，专业，努力成就未来。12月-2212月-22Friday,December30,2022弄虚作假要不得，踏实肯干第一名。06:12:4306:12:4306:1212/30/20226:12:43AM安全象只弓，不拉它就松，要想保安全，常把弓弦绷。12月-2206:12:4306:12Dec-2230-Dec-22重于泰山，轻于鸿毛。06:12:4306:12:4306:12Friday,December30,2022不可麻痹大意，要防微杜渐。12月-2212月-2206:12:4306:12:43December30,2022加强自身建设，增强个人的休养。2022年12月30日6:12上午12月-2212月-22追求卓越，让自己更好，向上而生。30十二月20226:12:43上午06:12:4312月-22严格把控质量关，让生产更加有保障。十二月226:12上午12月-2206:12December30,2022重规矩，严要求，少危险。2022/12/306:12:4306:12:4330December2022好的事情马上就会到来，一切都是最好的安排。6:12:43上午6:12上午06:12:4312月-22每天都是美好的一天，新的一天开启。12月-2212月-2206:1206:12:4306:12:43Dec-22务实，奋斗，成就，成功。2022/12/306:12:43Friday,December30,2022抓住每一次机会不能轻易流失，这样我们才能真正强大。12月-222022/12/306:12:4312月-22谢谢大家！踏实，奋斗，坚持，专业，努力成就未来。12月-2212月-232SalaryReviewGuidelinesGuidelinesonthedistributionofincrements anattempttoovercomethevaryingstandardsofjudgmentleadingtoan‘allmyducksareswans’approachtorewardingstaff.Thedistributionscalemayberelatedtoaguidelinelikethis:

Assessment

Increment(%)

Distribution

A–outstanding 9%–10% 10% B–good 7%–8% 20% C–satisfactory 4%–6% 50% D–needsimprovement 0% 10% E–unsatisfactory 0%

10%SalaryReviewGuidelinesGuidel33SalaryReviewGuidelinesGuidelinesonratesofprogression managersarehelpedtoplansalaryprogressionbybeinggivenanindicationofthenumberofyearsitshouldtakestaffatdifferentlevelsofperformancetoreachthetopofthegradeand,inzonesofsalaryrange,thelimitswithintherangewhichcanbereachaccordingtotheirperformance.

Assessment

LimitInGrade

TypicalLength

Learningzone 1to3years 2years Performingzone 4to6years 5years Exceedingzone 2to4years 3years - SalaryReviewGuidelinesGuidel34SalaryProblemsAbsorbingmarketratespressures

ariseswhengeneralandindividualsalaryreviewshavenotenabledthecompany’ssalarylevelstokeeppacewithincreaseinmarketrates. itisexacerbatedifthecompanyisexpandingandiscompelledtoobtainkeystaffwhoareinshortsupply.Wideningdifferentials

differentialsarewideningbetweenandwithincompaniesinthefollowingareas: -betweenhigh-andlow-payingorganizations–thevariations inprosperitybetweendifferingsectorsofindustryand commerceandbetweenregionsaremajorcontributorstothis problems. -betweencompaniespayingbonusesorincentivesandthose payingstraightsalaries.

SalaryProblemsAbsorbingmarke35SalaryProblems -betweentopandmiddlemanagementwithincompanies– thisispartlyincentiveled -betweenexecutivesrecruitedbysearchandthosewitha one-companycareer.Performancepay tendtofavourthefewwhoseresultscanbemeasured. merit-assessmentaretoooftenbasedonsubjectiveandbiasedjudgments. canbeavoidedonlybyintensivetrainingofassessorsandbycarefulmonitoringoftheappraisalscheme.SalaryProblems -betweentop36SalaryProblemsStaffreachingthetopoftheirsalaryleague

staffreachingthetopoftheirsalaryrangemayfeeldemotivatediftherearenoprospectsforpromotion itispossibletodealwiththisproblembyintroducingontopofthenormalsalaryrangeapremiumzonewhichisreservedforoutstandingstaffwhosepromotionisblocked.Startingsalaries

theproblemofstartingnewstaffathigherratesthanexistingemployeesshouldbeminimizedifinternalsalarylevelsareregularlyreviewedincomparisonwithmarketrates.SalaryProblemsStaffreaching37SalaryProblemsDeterioratingjobevaluationschemes

theschememaynothavebeencontrolledproperly,sothatgradedriftoccursthroughunjustifiableupgradings. schememayhavelostcredibilitybecauseitnolongergivesacceptablesolutions. administrationmayhavebecomesobureaucraticthatthetimetakentoproduceanswersisundulyprolonged. thesolutionistomakeadeterminedefforttotightencontrolsandspeedupadministration,makingonlyminormodificationstothescheme.SalaryProblemsDeterioratingj38ObjectivesofPerformance-RelatedPay(PRP)Motivateallemployees,notjustthehigh-flyers.Increasethecommitmentofemployeesbyencouragingthemtoidentifywithitsmissionandvalues.Reinforceexistingculturesandvaluestofosterhighlevelsofperformance,innovationandteamwork.Helptochangecultureswheretheyneedtobecomemoreperformance-orientedandresults-oriented;orwheretheadoptionofothernewandkeyvaluesshouldberewarded.Discriminateconsistentlyandbeequitableonthedistributionofrewardstoemployeesaccordingtotheirperformanceresultsandcontributions.ObjectivesofPerformance-Rela39ObjectivesofPerformance-RelatedPay(PRP)Deliverapositivemessageaboutperformanceexpectationsofthecompany–focusesattentiononkeyperformanceissues.Directattentionandendeavourbyspecifyingtheorganization’sperformancegoalsandstandards.Emphasizeindividualperformanceorteamworkasappropriate.Improvetherecruitmentandretentionofhigh-qualitystaff.PRPcostswillbeinlinewithcompanyperformance.ObjectivesofPerformance-Rela40KeyFactorstoConsiderWhenIntroducingPRPMatchingtheculture successfulPRPschemesneedtomatchthecultureandcorevaluesoftheorganization.LinkingPRPtobusinessstrategy thefocusneedstobeonstrategicbusinessissueswhichemergefromthebusinessplanningprocess.Balancingquantitativeandqualitativemeasures whilemostPRPschemesrelyonquantitativemeasuresofperformance,qualitativefactorsneedtobeintroducedforthemeasurementofindividualbehaviouregbalancedscorecardsTheneedforflexibility flexibilityinmaking‘milestone’paymentswhichconveytherightmessagesforthefuture.Theneedtopromoteteamwork theimportanceofteamworkshouldberecognizedinstructuringtheschemeanddefiningcriticalsuccessfactorsandperformanceindicators.KeyFactorstoConsiderWhenI41KeyFactorstoConsiderWhenIntroducingPRPTheneedtoavoidshort-termthinking settinglong-termaswellasshort-termgoals,anddiscussingshort-termobjectivesintheiroverallcontext.Involvementinthedesignprocess designingPRPschemesshouldbeaniterativeprocess:tryingandtestingideasonmeasuresandstructureswiththosewhowilleventuallybeinvolvedinascheme.Gettingthemessageacross alltypesofPRPareverypowerfulformsofcommunication.Togettherightmessagesacrossforanyscheme,onemustmakekeydecisionsonthefollowing:

Howcantheschemeachievethebestpossiblelaunch? Isitbettertogivenopay-outratherthanalowpay-out? Whatisthebestpsychologicalmomentforpay-out? Whatcommunicationsshouldbeusedtogainmaximum motivationalimpactfrompayment? Howshouldcommunicationsbehandledwhenthescheme requireschanges?KeyFactorstoConsiderWhenI42CompetencebandsExcellentGoodSatisfactoryPerformanceLevelsPerformingLearning

NewEntryProfessional

CompetentProfessional

ExperiencedProfessional

CompetenceandPerformance-RelatedPayCurveSalary($)ExceedingCompetencebandsExcellentGoodS43Directlylinkindividualperformancewithsalaryprogression.Provideindividualizedprogressionrates.Recognizeincreasingcompetencegainedthroughexperience.AdvantagesofindividualMeritPaymentSchemeDirectlylinkindividualperfo44DisadvantagesofIndividualMeritPaymentSchemeDependentonthequalityofperformanceappraisal;whichcanbearbitrary,subjectiveorinconsistent.Unlesscarefullyconceivedandmanaged,itcandemotivatepeoplewho,althoughnotbedelivering