Methods of compensation
Executive compensation is hot but the non-executive workers feel ignored and frustrated as they see the gap between executive and employee compensation widen with each passing year.
Several trends indicate a need for more focus on employee compensation. These include:
- A continuing shortage of qualified professional, technical and administrative employees.
- A growing need for employees who are multi-skilled and adaptable to change.
- A decreasing level of long-term commitment by employees
- An increasing need for balance between work and other facets of life.
Base salary, traditional benefits like health, welfare and retirement, and perhaps a profit-sharing plan are the basic compensation package that has been offered by many companies.
Following are examples of programs that tie directly to employee’s performance.
- Time off Surprise: Give Supervisors a bank of days and/or afternoons off that they can reward to staff on the spot for meritorious service.
- Behind-The-Scenes: Recognize employees yearly or periodically who are not usually in the limelight. An alternative, involves recognizing employees who take risks.
- Cash for Ideas: Periodically ask employees to record ways the company could save money. Pay a nominal amount per idea. If the idea is implemented, pay an additional 10% of the savings. The Poster Ideas program involves hanging poster board at key locations within the company. Written at the top of each board is a problem that needs solving.
- Travel Expense Gain sharing: Create a program for employees who save on travel . Allow them to keep half the cost difference between their choice of hotel or transportation and the company’s standard.