Evolve Pay for Performance

Shift from a one-size-fits-all to a tailored approach to base pay increases and bonuses.

Onsite Workshop

Without evolving traditional and pay for performance compensation practices, processes are often:

  • Misaligned with performance management advancements.
  • Inflexible and not suitable for the VUCA environment of business today.
  • Disconnected from the workforce and nature of work.

A modernized approach to base pay increases and bonuses will result in:

  • A compensation program aligned to organizational strategy, structure, and culture.
  • An approach that supports agile business and achieves desired outcomes.
  • An approach that mitigates issues found in current pay for performance methodology.

Module 1: Identify Compensation Challenges and Complete a Current-State Assessment

The Purpose

  • Discuss compensation challenges and complete a current state assessment.
  • Gauge organizational readiness.

Key Benefits Achieved

  • Implications and organizational readiness for changes to annual base pay increases and bonuses have been assessed.

Activities: Outputs:
1.1 Identify and discuss your compensation challenges.
  • Pain points of the current pay for performance approach are identified.
1.2 Examine performance management practices.
  • Required links to performance management are determined.
1.3 Evaluate current pay for performance approach.
  • Effectiveness of the current approach is reviewed.
1.4 Analyze workforce data and trends.
  • Workforce data is analyzed for possible implications to pay for performance changes.
1.5 Evaluate the cultural landscape.
  • Required alignment between organizational culture and pay for performance is determined.
1.6 Assess your organizational readiness level.
  • Organizational readiness for changes to annual base pay increases and bonuses determined

Module 2: Design a New Approach to Base Pay Increases and Bonuses

The Purpose

  • Define objective(s) for annual base pay increases and bonuses, either by employee segment or organization-wide.
  • Set metrics and design the program approach.

Key Benefits Achieved

  • Objectives are aligned to organizational strategy, structure, and culture.
  • Metrics for success are determined and the program approach foundation is outlined.

Activities: Outputs:
2.1 Determine new objectives for base pay increases and bonus programs.
  • New objectives for base pay increases and bonus programs.
2.2 Select goals and metrics.
  • Goals and metrics to measure the success of your base pay increase and bonus approach.
2.3 Design base pay increase and bonus approach.
  • Building blocks for the new base pay increase and bonus approach are selected.

Module 3: Complete a Costing Simulation, Identify Risks, and Develop Your Communication Strategy

The Purpose

  • Conduct a simulated cost exercise.
  • Identify potential risks with the new approach.
  • Develop an employee communication strategy.

Key Benefits Achieved

  • Budgetary implications are understood at a high level.
  • Risk assessment is conducted.
  • Communication plan is established.

Activities: Outputs:
3.1 Conduct a simulated costing exercise to identify any budgetary impacts.
  • High-level financial impacts of the new approach are calculated.
3.2 Identify potential risks and difficulties in rolling out new approach.
  • Risks identified and mitigation solutions brainstormed.
3.3 Develop an action and communication plan.
  • Implementation strategy determined.
3.4 Determine how to prepare managers.
  • Managers equipped to succeed in their new role.

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