NOTE: The Division is closely following the activities associated with the recent 1st DCA and Supreme Court rulings. During the upcoming 2017 legislative session, laws impacting the workers' compensation system may be addressed, therefore the Divisio
Courage doesn't always roar. Sometimes courage is the quiet voice at the end of the day saying, "I will
Idea Transcript
Implementing a Performance-Based Compensation System
(/profile/noah-b-rosenfarb) Jan 6th 2004
C
1
ompensation used to mean a fixed salary with annual increases. This model rested upon employee demands to be paid based on the number of hours worked and years of service. Today's compensation needs to reflect the “new” contract between employers and employees – where
performance is rewarded regardless of effort or tenure. Pay-for-Performance ("PFP") systems tie compensation directly to specific business goals and management objectives. To do this, companies must deliver competitive pay for competitive levels of performance, pay above market for exceptional performance, and reduced pay for poor performance. To achieve this, companies must match measurable and controllable performance targets to company objectives. In PFP systems, employees’ compensation is composed of a fixed base salary and a variable component. The most commonly used variable components are: Company equity (Phantom or actual) - the quantity and price to be paid are typically based on a percentage of value added as determined by the performance measurement system; Bonuses - cash awards for extraordinary accomplishments or other activity-related distributions;
Please Login (/user/login?destination=node/5689&referrer=lockdown) or Register (/user/register?destination=node/5689&referrer=lockdown) to read the full article To access all of the content on our site, register (it's free!) or login to your existing account.
Tags Firms (/tags/firms) HR (/tags/hr)
About (/profile/noah-b-rosenfarb) Read more from (/profile/noah-b-rosenfarb)
Please login (/user/login?destination=node/5689) or register (/user/register? destination=node/5689&referrer=comment) to join the discussion.
Please login (/user/login?destination=node/5689) or register (/user/register? destination=node/5689&referrer=comment) to join the discussion. Share this content