5 reasons you should pay for performance

5 Reasons You Should Pay Employees for Performance bamboohr.com payscale.com Reasons You Should Pay Employees for Performance bamboohr.com Daniel Dean Mykkah Herner Product Marketing Manager BambooHR Modern Compensation Evangelist PayScale payscale.com Reasons You Should Pay Employees for Performance What Is Pay for Performance? “Links pay (base and/or variable), in whole or in part, to individual, group, and/or organizational performance.” —The World at Work Handbook of Compensation, Benefits & Total Rewards bamboohr.com payscale.com Reasons You Should Pay Employees for Performance Types of Pay for Performance • Bonus • Variable (commission) • Yearly raises bamboohr.com payscale.com Reasons You Should Pay Employees for Performance Reasons You Should Pay Employees for Performance bamboohr.com payscale.com Reasons You Should Pay Employees for Performance Cost-Efficiency bamboohr.com payscale.com Reasons You Should Pay Employees for Performance Recruiting and Retention The average raise is percent of salary The cost to replace an employee is 30-400 percent of salary bamboohr.com payscale.com Reasons You Should Pay Employees for Performance It’s the Right Thing To Do bamboohr.com payscale.com Reasons You Should Pay Employees for Performance Better Culture and Happier Employees “In large part, culture is a product of compensation.” — Alec Haverstick bamboohr.com payscale.com Reasons You Should Pay Employees for Performance Drives Results bamboohr.com payscale.com Reasons You Should Pay Employees for Performance Who Does Compensation Matter Most To? bamboohr.com payscale.com Reasons You Should Pay Employees for Performance Age BABY BOOMERS GEN X AND BUSTERS GEN Y AND MILLENNIALS 1946-1964 1965-1983 1984-2002 COMMUNICATION ABOUT COMP COMMUNICATION ABOUT COMP COMMUNICATION ABOUT COMP Mostly Private Somewhat Private Public AVERAGE TENURE AVERAGE TENURE AVERAGE TENURE 15+ yrs 5+ yrs 15 mos-2 yrs CAREER MINDSET CAREER MINDSET CAREER MINDSET Retirement Work/Life Balance Management Work/Life Balance bamboohr.com Go-Getters Advancement Flexibility payscale.com Reasons You Should Pay Employees for Performance Gender MEN • No reason they left their job • 79 percent are annoyed by low salaries • 74 percent are annoyed by unequal pay WOMEN bamboohr.com • No reason they left their job • 86 percent are annoyed by low salaries • 83 percent are annoyed by unequal pay payscale.com Reasons You Should Pay Employees for Performance Manager vs Non-Manager MANAGERS • No reason they left their job • 84 percent are annoyed by low salaries • 79 percent are annoyed by unequal pay NON-MANAGERS bamboohr.com • No reason they left their job • 81 percent are annoyed by low salaries • 78 percent are annoyed by unequal pay payscale.com Reasons You Should Pay Employees for Performance The Compensation Mix • Individualized Rewards & Recognition • Variable or Incentive Pay Plan • Base Pay Plan • Company Culture, Compensation Philosophy & Compensation Strategy bamboohr.com payscale.com Reasons You Should Pay Employees for Performance Strategy • Develop Clear Compensation Strategy • Get Reliable Market Data • Develop Clear and Aligned Goals bamboohr.com payscale.com Reasons You Should Pay Employees for Performance How Should I Start Paying for Performance? bamboohr.com payscale.com Reasons You Should Pay Employees for Performance What’s Hindering Pay for Performance? bamboohr.com Negatively labeled Millennials Talking compensation is taboo Switching jobs is easier Moving away from performance reviews payscale.com Reasons You Should Pay Employees for Performance Daniel’s Tips for What To Do Today: bamboohr.com Take a look at your culture Bring back (some) reviews Create clear communication Make unique decisions for your unique company payscale.com Reasons You Should Pay Employees for Performance Mykkah’s Tips for What To Do Today: bamboohr.com Gain executive buy-in Align with organization goals & culture Get the right systems in place Train managers properly Communicate clearly across the organization payscale.com Reasons You Should Pay Employees for Performance “Employees won’t believe there is a link between pay and performance unless they can see it.” —Margaret O’Hanlon, re:Think Consulting bamboohr.com payscale.com Reasons You Should Pay Employees for Performance Thank you! 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BambooHR Receive a free job posting on our ATS and full HRIS for one week We will contact everyone within the next few days to set this up PayScale Download our free eBook: Communicating Compensation: Your guide to tackling tough conversations about pay bamboohr.com payscale.com ... payscale.com Reasons You Should Pay Employees for Performance How Should I Start Paying for Performance? bamboohr.com payscale.com Reasons You Should Pay Employees for Performance What’s Hindering Pay for. .. for Performance Reasons You Should Pay Employees for Performance bamboohr.com payscale.com Reasons You Should Pay Employees for Performance Cost-Efficiency bamboohr.com payscale.com Reasons You. .. bamboohr.com payscale.com Reasons You Should Pay Employees for Performance Types of Pay for Performance • Bonus • Variable (commission) • Yearly raises bamboohr.com payscale.com Reasons You Should Pay