Comprehensive Compensation Systems: 1. Identifies several levels and categories of performers 2. Specifies desired behaviors in detail, expected outcomes, and measurement strategies 3. Provides a variety of incentives in different categories 4. Prescribes detailed procedures for the distribution of incentives Ask is the system adequate, balanced and consistent?
Compensation is a powerful tool HP technologists should look at how they affect performance People repeat behaviors they find rewarding
Compensation won’t fix: When managers want quick results When managers are unwilling to upgrade equipment , tools, or work conditions Managers are unwilling to disclose information to employees about salary scales and incentives Managers are unwilling or unable to specify the results and accomplishments they want HP technologists lack expertise or unable to consult with competent professionals
Can use an ADDIE-like model to create Analysis Design Implementation Evaluation
Whose performance is to be rewarded? How does on job group differ from others? What are the different conditions under which the same job is performed? How is employee performance evaluated? How frequently is employee performance evaluated? What types of accomplishments are rewarded by the compensation system? What is the relationship of different types of performance to organizational goals? If there is no direct link between individual performance an organizational productivity, how can the two be related? Who will evaluate performance? Who is responsible for suggesting appropriate incentives? What recourse does the employee have if he or she disagrees with a performance evaluation?
Current Trends Changing Workforce Changing Nature of Work Employee stake in corporations Global market Worker Movement
The compensation must be aligned with the business strategy and with other elements of the performance system. Lawsuits, union protests, and other consequences may follow amateurishly designed systems.
Bares, A. (n.d.). Compensation Cafe: Incentives/Bonuses. Compensation Cafe. Blog, . Retrieved November 8, 2011, from http://www.compensationcafe.com/incentivesbonuses/ Maslow’s Hierarchy of Needs. (n.d.). Retrieved from http://www.netmba.com/mgmt/ob/motivation/maslow/ Obringer, L. A. (n.d.). HowStuffWorks “Employee Compensation Structures.” How Stuff Works. Retrieved November 8, 2011, from http://money.howstuffworks.com/benefits1.htm Thiagarajan, S., Estes, F., and Kemmerer, F. N. (1999). Designing Compensation Systems to Motivate Performance Improvement. In Stolovitch, H. D. & Keeps, E. J. (Eds.), Handbook of Human Performance Technology: Improving Individual and Organizational Performance Worldwide (2nd ed.). San Francisco: Jossey- Bass/Pfeiffer. Tynan, D. (n.d.). 25 Ways to Reward Employees (Without Spending a Dime) - HR World. HR World.