{"id":282,"date":"2006-09-06T12:53:17","date_gmt":"2006-09-06T17:53:17","guid":{"rendered":"http:\/\/selectmetrix.com\/blogs\/?p=282"},"modified":"2006-09-06T12:53:34","modified_gmt":"2006-09-06T17:53:34","slug":"performance-based-compensation","status":"publish","type":"post","link":"http:\/\/selectmetrix.com\/blogs\/2006\/09\/performance-based-compensation\/","title":{"rendered":"Performance-Based Compensation"},"content":{"rendered":"<p>As a lifelong salesperson, I have always contended that all employees should be on some variable, performance-based pay. <a href=\"http:\/\/www.careerjournal.com\/columnists\/theorypractice\/20060829-theorypractice.html?mod=RSS_Career_Journal&#038;cjrss=frontpage\" target=\"_blank\">This article<\/a> from CareerJournal indicates that a trend is forming in this direction.<\/p>\n<blockquote><p><em>Employers are making employees work harder for their money<\/em>.Most workers will receive modest raises this year and next, as employers reward employees with performance-linked bonuses rather than broad salary increases, according to a survey by consulting company Hewitt Associates Inc.<\/p><\/blockquote>\n<p>That first sentence is bunk. I&#8217;m guessing the author has not worked in sales. The better lead would be to state <em>Employees now have a chance to earn far more money for their efforts<\/em>.<\/p>\n<blockquote><p>&#8220;More companies are relying on bonuses as the basis for pay for performance than they are on merit increases,&#8221; says Hewitt consultant Ken Abosch. Bonuses can help employers manage costs and are &#8220;very effective around creating focus&#8221; on business objectives, Mr. Abosch says. Hewitt&#8217;s annual survey included about 1,000 large and midsize U.S. organizations this year.<\/p><\/blockquote>\n<p>Amen to that. The article continues by raising typical questions &#8211; unattainable goals, poor manager reviews and undefined goals. These are all valid concerns, but the strategy of performance pay trumps them all.<\/p>\n<p>The article closes with this gem:<\/p>\n<blockquote><p>Last year, the approximately 60% to 70% of employees who fell within the satisfactory range received merit raises between 2% and 3.5%; they also were eligible for bonuses. The mentality, Ms. Weinstein says, has gone &#8220;<strong>from entitlement to meritocracy<\/strong>.&#8221;<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>As a lifelong salesperson, I have always contended that all employees should be on some variable, performance-based pay. This article from CareerJournal indicates that a trend is forming in this direction. Employers are making employees work harder for their money.Most workers will receive modest raises this year and next, as employers reward employees with performance-linked bonuses rather than broad salary increases, according to a survey by consulting company Hewitt Associates Inc. That first sentence is bunk. I&#8217;m guessing the author has not worked in sales. The better lead would be to state Employees now have a chance to earn far more money for their efforts. &#8220;More companies are relying on&hellip; <a class=\"read-more\" href=\"http:\/\/selectmetrix.com\/blogs\/2006\/09\/performance-based-compensation\/\">Read More<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"bgseo_title":"","bgseo_description":"","bgseo_robots_index":"","bgseo_robots_follow":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[11,5],"tags":[],"class_list":["post-282","post","type-post","status-publish","format-standard","hentry","category-team-management","category-trends"],"jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p5Oho-4y","jetpack-related-posts":[{"id":164,"url":"http:\/\/selectmetrix.com\/blogs\/2006\/07\/yearn-vs-earn\/","url_meta":{"origin":282,"position":0},"title":"Yearn vs. Earn","author":"Derrick Moe","date":"July 12, 2006","format":false,"excerpt":"CareerJournal.com has this attention-grabbing article - Getting a Raise From the Boss. I opened that one immediately. Then, I read this: Complicating matters for working stiffs: Employers increasingly are doling out money based on performance, instead of giving out across-the-board raises that were more common back in the 1990s. This\u2026","rel":"","context":"In &quot;Hiring&quot;","block_context":{"text":"Hiring","link":"http:\/\/selectmetrix.com\/blogs\/category\/hiring\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":486,"url":"http:\/\/selectmetrix.com\/blogs\/2006\/12\/christmas-bonus-trends-gifts-or-time-off\/","url_meta":{"origin":282,"position":1},"title":"Christmas Bonus Trends &#8211; Gifts or Time-off","author":"Lee Fratzke","date":"December 7, 2006","format":false,"excerpt":"In a recent survey conducted by BNS and sponsored by Kronos, researchers found that more employers will give staff gifts and bonuses this year while fewer plan to extend the holidays by granting three or more days of paid leave. Here are some highlights from the survey: 49% of employers\u2026","rel":"","context":"In &quot;Trends&quot;","block_context":{"text":"Trends","link":"http:\/\/selectmetrix.com\/blogs\/category\/hiring\/trends\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1799,"url":"http:\/\/selectmetrix.com\/blogs\/2008\/11\/keep-the-perks\/","url_meta":{"origin":282,"position":2},"title":"Keep The Perks","author":"Derrick Moe","date":"November 20, 2008","format":false,"excerpt":"The Herman Trend Alert has a surprising report on a survey looking at employee perks for 2008.\u00a0 The economy may be tanking, but employers are aware of the need to retain talent. In spite of the drastic effects of the economy on the labor market with announced workforce reductions up\u2026","rel":"","context":"In &quot;Compensation&quot;","block_context":{"text":"Compensation","link":"http:\/\/selectmetrix.com\/blogs\/category\/compensation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":443,"url":"http:\/\/selectmetrix.com\/blogs\/2006\/11\/one-of-them-must-be-wrong\/","url_meta":{"origin":282,"position":3},"title":"One of Them Must Be Wrong","author":"Derrick Moe","date":"November 16, 2006","format":false,"excerpt":"A quote from my post on Tuesday: And don't assume its about money. When someone quits her job, 89 percent of managers assume it was over money, whereas 91 percent of the workers who quit say it was anything but, Murphy said. From a CareerJournal article titled Opportunity Knocks, And\u2026","rel":"","context":"In &quot;Retention&quot;","block_context":{"text":"Retention","link":"http:\/\/selectmetrix.com\/blogs\/category\/retention\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":660,"url":"http:\/\/selectmetrix.com\/blogs\/2007\/02\/2007-salary-trends\/","url_meta":{"origin":282,"position":4},"title":"2007 Salary Trends","author":"Lee Fratzke","date":"February 14, 2007","format":false,"excerpt":"Salary.com put this article out earlier this month. It is a lengthy article written to employees in regards to 2007 areas of compensation, but there are some points to keep in mind not only as you are hiring staff this year but in retaining your current team. These points are\u2026","rel":"","context":"In &quot;Compensation&quot;","block_context":{"text":"Compensation","link":"http:\/\/selectmetrix.com\/blogs\/category\/compensation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1135,"url":"http:\/\/selectmetrix.com\/blogs\/2007\/08\/raises-for-results\/","url_meta":{"origin":282,"position":5},"title":"Raises For Results","author":"Derrick Moe","date":"August 16, 2007","format":false,"excerpt":"This CareerJournal.com article can only be categorized as good news - More Employers Are Basing Raises, Bonuses on Results.\u00a0 Of course, none of this is surprising for salespeople since the vast majority are compensated based on their successful selling.\u00a0 For other positions, this may be a bit of a surprise:\u2026","rel":"","context":"In &quot;Compensation&quot;","block_context":{"text":"Compensation","link":"http:\/\/selectmetrix.com\/blogs\/category\/compensation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"jetpack_featured_media_url":"","_links":{"self":[{"href":"http:\/\/selectmetrix.com\/blogs\/wp-json\/wp\/v2\/posts\/282","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/selectmetrix.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/selectmetrix.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/selectmetrix.com\/blogs\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"http:\/\/selectmetrix.com\/blogs\/wp-json\/wp\/v2\/comments?post=282"}],"version-history":[{"count":0,"href":"http:\/\/selectmetrix.com\/blogs\/wp-json\/wp\/v2\/posts\/282\/revisions"}],"wp:attachment":[{"href":"http:\/\/selectmetrix.com\/blogs\/wp-json\/wp\/v2\/media?parent=282"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/selectmetrix.com\/blogs\/wp-json\/wp\/v2\/categories?post=282"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/selectmetrix.com\/blogs\/wp-json\/wp\/v2\/tags?post=282"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}<!-- WP Super Cache is installed but broken. 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