How should we reward our employees to retain and motivate them for full performance?
Compensation review examines salary costs across the workforce, and how they are reflected at the departmental, business unit and global levels. It defines how to reward employees to retain them and improve their performance. Profiles on base pay, merit increases and promotions help you decide both individual employee and total compensation for better performance management.
This approach requires systematic methods to identify and analyze pay increases, bonuses and incentive awards. Performance reviews should also be ongoing. By monitoring and reporting on the review process, you can confirm progress against rewards management, career planning and development targets.
With the Compensation decision area, you can set planning goals and scorecarding metrics for these performance management elements:
- Average compensation increase ($ and %).
- Compensation cost ($).
- Bonus / incentive costs ($).
- Salary ($).
- Employee promotions (#).
- Skills rating gap (%).
Most importantly, you can analyze these goals and metrics by a number of dimensions to find the hidden gems affecting performance in the data:
- Fiscal month / year.
- Compensation program.
- Full time / part time.
- Job grade level.
- Job type.
- Division / department.
Using the Compensation decision area
You set targets based on your goals and metrics in Compensation. You monitor your success by looking at how you measure up against your objectives. Further, you dive into your results to find out more about these elements driving performance management.
- Average compensation increase (%): Are we providing enough pay increases to motivate senior employees?
- Bonus / incentive costs ($): Which employees are at risk of leaving? What can we do to keep them?
- Employee promotions (#): Which employees are ready for management positions?
