Paying for performance a critical tool to fuel both individual and organizational success

Paying for Performance: A Critical Tool to Fuel Both Individual and Organizational Success bamboohr.com Victoria Hodgkins Cami DeFoor Chief Marketing Officer BambooHR Director of Sales Training PayScale payscale.com Paying for Performance: A Critical Tool to Fuel Both Individual and Organizational Success 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 Paying for Performance: A Critical Tool to Fuel Both Individual and Organizational Success bamboohr.com payscale.com Paying for Performance: A Critical Tool to Fuel Both Individual and Organizational Success bamboohr.com payscale.com Paying for Performance: A Critical Tool to Fuel Both Individual and Organizational Success Types of Pay for Performance bamboohr.com • Regular Bonus • One-time Bonus • Variable (commission) • Yearly Raises payscale.com Five Main Factors Paying for Performance: A Critical Tool to Fuel Both Individual and Organizational Success bamboohr.com Cost Efficiency payscale.com Paying for Performance: A Critical Tool to Fuel Both Individual and Organizational Success bamboohr.com Recruiting & Retention payscale.com Paying for Performance: A Critical Tool to Fuel Both Individual and Organizational Success The Hidden Costs of Turnover Turnover costs are, on average, between six and nine months’ of an employee’s salary bamboohr.com • Administrative Costs: separation pay, exit interviews • Workload Costs: Extra hours, overtime pay, temp help • Recruiting Costs: Advertising, referral bonuses, interview time • Productivity Costs: Covering for missing employees • Training Costs: Time to contribution, trainer’s hours payscale.com Paying for Performance: A Critical Tool to Fuel Both Individual and Organizational Success Performance Management Challenges FREQUENCY bamboohr.com TIME ACCURACY PURPOSE payscale.com Paying for Performance: A Critical Tool to Fuel Both Individual and Organizational Success Performance Management Challenges FREQUENCY bamboohr.com payscale.com Paying for Performance: A Critical Tool to Fuel Both Individual and Organizational Success Performance Management Challenges TIME bamboohr.com payscale.com Paying for Performance: A Critical Tool to Fuel Both Individual and Organizational Success Performance Management Challenges ACCURACY bamboohr.com payscale.com Paying for Performance: A Critical Tool to Fuel Both Individual and Organizational Success Performance Management Challenges PURPOSE bamboohr.com payscale.com Paying for Performance: A Critical Tool to Fuel Both Individual and Organizational Success bamboohr.com payscale.com Paying for Performance: A Critical Tool to Fuel Both Individual and Organizational Success The Compensation Mix bamboohr.com • Individualized Rewards & Recognition • Variable or Incentive Pay Plan • Base Pay Plan • Company Culture, Compensation Philosophy & Compensation Strategy payscale.com Paying for Performance: A Critical Tool to Fuel Both Individual and Organizational Success Strategy bamboohr.com • Develop Clear Compensation Strategy • Get Reliable Market Data • Develop Clear and Aligned Goals payscale.com Action Items Paying for Performance: A Critical Tool to Fuel Both Individual and Organizational Success Performance Action Items Measure Performance Accurately Continue Clear Communication Develop a Culture of Trust Create Custom Solutions bamboohr.com payscale.com Paying for Performance: A Critical Tool to Fuel Both Individual and Organizational Success Compensation Action Items Gain Executive Buy-In Align with Organization Goals/Culture Get the Right Systems in Place Train Managers Properly Communicate Clearly Across the Organization bamboohr.com payscale.com Paying for Performance: A Critical Tool to Fuel Both Individual and Organizational Success “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 Paying for Performance: A Critical Tool to Fuel Both Individual and Organizational Success Questions? BambooHR Download our new Definitive Guide to Performance Management https://www.bamboohr.com/resources/ebooks/definitive-guide-to-performance-management PayScale Get the free whitepaper on Pay and Performance Visit http://www.payscale.com/hr/whitepapers bamboohr.com payscale.com Paying for Performance: A Critical Tool to Fuel Both Individual and Organizational Success More Great Content Thanks for joining us today Don’t forget to check out other webinars and eBooks that will help set you free to great work! Managing Employee Turnover bamboohr.com Comp Is Culture payscale.com Paying for Performance: A Critical Tool to Fuel Both Individual and Organizational Success Thank you! Follow BambooHR and PayScale on social media: bamboohr.com/blog | www.payscale.com/compensation-today bamboohr.com payscale.com ... Individual and Organizational Success Pay and Performance Management bamboohr.com payscale.com Paying for Performance: A Critical Tool to Fuel Both Individual and Organizational Success Performance. .. Critical Tool to Fuel Both Individual and Organizational Success bamboohr.com payscale.com Paying for Performance: A Critical Tool to Fuel Both Individual and Organizational Success bamboohr.com payscale.com... payscale.com Paying for Performance: A Critical Tool to Fuel Both Individual and Organizational Success bamboohr.com A Culture of Trust payscale.com Paying for Performance: A Critical Tool to