Traditional Pay for Performance Has Run Its Course

Performance management has changed to match the cadence of today’s operating environment, yet the approach to annual base pay increases and bonuses has largely remained the same. Traditional pay for performance - where performance ratings dictate annual salary increases and bonuses - hasn’t evolved along with the changing workforce and nature of work. Organizations need to revisit their objectives for providing annual salary increases and bonuses, and then design an approach that fits their needs and context. This video covers:

• Why the current approach to Pay for Performance is broken
• Alternative approaches that can be customized to an organization’s environment
• Examples of organizations that have successfully made this change