No Image Available


Read more from TrainingZone

googletag.cmd.push(function() { googletag.display(‘div-gpt-ad-1705321608055-0’); });

Compensation done the ‘right’ way


The current 'Workforce Week' looks at pay and other rewards:

Both employers and employees are nowadays acutely aware of the important role played by reward and recognition practices in attracting and retaining talent. Companies spend significant time and resources searching for best practices.

Unfortunately, many companies are disappointed when they don’t obtain the results they were expecting after implementing a plan that has been touted as a "best practice" by another company. To truly achieve a best practice takes more than copying interesting competitor practices.

In an ongoing study of best practices in the United States, the California-based Saratoga Institute has found that best practices more typically occur when a specific design approach is followed.

A plan is likely to become a best practice when it:

* Meets the original objective for which it was designed.

* Drives desired, positive results relative to company culture and strategic business objectives.

* Addresses the specific needs, business philosophies and operating environment of the implementing organization.

Other factors that are fundamental to achieving a best practice pay plan:

* Rewards must be linked to business strategy.

* Plan objectives must be clearly articulated (participants must know what is being rewarded and why).

* Behaviors motivated by the plan must support company culture and values.

* Payouts must be related to actual business performance and results.

* Plan design must be adaptable to changing business conditions.

* All elements of the plan, including expected performance and results, must be clearly communicated and fully understood by participating employees.

* Participating employees must be involved in the design process.

* Participants must believe the plan has value.

* All elements of the plan must be regularly reviewed for effectiveness in meeting stated objectives and achieving desired results.


Get the latest from TrainingZone.

Elevate your L&D expertise by subscribing to TrainingZone’s newsletter! Get curated insights, premium reports, and event updates from industry leaders.


Thank you!