Certify and Increase Opportunity.
Be
Govt. Certified Performance Appraisal Manager

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.

Test your skills by taking our Performance Appraisal practice tests on this link

Go back to Tutorial                                                                                Go to Home Page