Using compensation to motivate performance

Using Compensation to Motivate Performance bamboohr.com Cassie Whitlock Mary Lasky Director of HR BambooHR Compensation Professional PayScale payscale.com What Drives Engagement? 16 ELEMENTS The building blocks of high performing people, cultures, and organizations INPUT ELEMENTS What You Need to Get Work Done ACTION ELEMENTS Getting Work Done INFLUENCER ELEMENTS What Moves You Forward OUTPUT ELEMENTS What You Get From Work Using Compensation to Motivate Performance How compensation drives employee engagement Compensation Communication bamboohr.com Value payscale.com Using Compensation to Motivate Performance Engagement & Performance bamboohr.com payscale.com Using Compensation to Motivate Performance How companies are recognizing high performers PayScale 2018 Compensation Best Practices Report bamboohr.com payscale.com Using Compensation to Motivate Performance Employers are counting on variable pay to hire and retain bamboohr.com • 71 % of organizations offered variable pay (bonuses, commissions) • Number of spot bonuses decreased YoY from 46 % to 39 % • Individual incentive increased (67 % vs 64 %) • Hiring bonuses increased (34 % vs 27%) payscale.com Using Compensation to Motivate Performance • Passes to sporting events • Catered lunches for winning teams • Days off after big deadlines • Choice of work assignment • Development opportunities • Lunch with the CEO • Remote work bamboohr.com payscale.com Using Compensation to Motivate Performance Typical Challenges • Insufficient funding / budget • Poor goal setting / unclear definition of performance • Unrealistic employee rewards expectations The best rewards program will not be successful if not clearly understood by employees bamboohr.com payscale.com Using Compensation to Motivate Performance Budgeting Considerations bamboohr.com payscale.com Using Compensation to Motivate Performance When you have a “sufficient” or “modest” budget … Use a Merit Matrix bamboohr.com payscale.com Using Compensation to Motivate Performance When your budget is tight… Consider: • Pricing jobs to market; use budget to bring green outliers into range • Give market-based increases for positions where market shows steady upward pattern bamboohr.com • Use budget to address pay equity (gender, compression, etc.) • Invest in an incentive pay pool; payout based on goal attainment payscale.com Using Compensation to Motivate Performance Building a Pay-for-performance Program bamboohr.com payscale.com Using Compensation to Motivate Performance Practices for building a pay for performance culture • Get buy-in from all levels • Don’t incentivize individuals who are consistently under-performing • Decide what good performance looks like • Create feedback mechanisms • Set rewards expectations with employees • Create a merit matrix bamboohr.com payscale.com Using Compensation to Motivate Performance Choosing Smart Goals Develop Clear and Aligned Goals • • • Company or Organization Level Department or Team Level Individual Level Goal-Setting Best Practice • • bamboohr.com SMART – Specific, Measurable, Attainable, Relevant, and Timebound KIS(S) – Keep It Simple! payscale.com Using Compensation to Motivate Performance bamboohr.com Developed Collaboratively Articulated Clearly Aimed at Excellence Individualized to Strengths payscale.com Takeaways Using Compensation to Motivate Performance Takeaways Define performance management processes Identify employee motivators 16 Elements of Engagement health check Develop a toolkit for managers bamboohr.com • Align goals with performance and engagement • Trained for compensation conversations payscale.com Using Compensation to Motivate Performance Questions? 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 Check out the 2018 Compensation Best Practices Report https://www.payscale.com/cbpr bamboohr.com payscale.com Using Compensation to Motivate Performance Thank you! Follow BambooHR and PayScale on social media: bamboohr.com/blog | payscale.com bamboohr.com payscale.com ... engagement Compensation Communication bamboohr.com Value payscale.com Using Compensation to Motivate Performance Engagement & Performance bamboohr.com payscale.com Compensation as Cornerstone Using Compensation. .. payscale.com Using Compensation to Motivate Performance To Increase Trust, Determine Your Level of Transparency bamboohr.com payscale.com Pay Communication Using Compensation to Motivate Performance. .. conversation they may have payscale.com Using Compensation to Motivate Performance bamboohr.com payscale.com Using Compensation to Motivate Performance Immediate Steps to Improve Pay Communication bamboohr.com