Performance Pay
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What is performance pay?
- Performance Pay is a method of remuneration that links pay to an assessment of individual performance.
- We can advise you on how to succeed with any performance or other contribution based pay scheme.
- Whilst the research is inconclusive as to the absolute benefits it does reveal considerable success factors and also what doesn’t work.
We can help you to:
- Understand the drivers, benefits and risks of performance pay.
- Build an informed and common understanding of the desired approach.
- Design the detail of any performance pay scheme.
- Enable effective implementation including the introduction of systems and the essential managerial capability.
Our approach provides:
- A means of locating performance pay within an overall strategic approach to reward.
- A way of ensuring performance is defined, measured and managed. These are all prerequisites of an effective scheme .
- An opportunity to build informed consent to any changes.
Key features are:
- A “what works” perspective based on track record and researched outcomes.
- An open, honest approach to the risks and advice on their management.
- Addressing why schemes can fail (often managerial reluctance and resistance to managing the benefits).
- Guiding the detail on managing the link from performance to pay result.
- Examination and advice on other rewards, apart from pay.
The process
Implementation depends on your situation. We work in close partnership at all times.
A typical process involves:
- Stage one
Your detailed briefing on strategy requirements. - Stage two
Reviewing current reward policy and process. - Stage three
Ownership and design of scheme – building informed understanding based on contingent option appraisals. - Stage four
Implementation (Capability and process).