Organizations are constantly challenged to balance the objectives of employee pay: competitiveness, motivation, equity and cost. Many organizations unintentionally get the objectives out of balance, creating an environment of entitlement where the link between performance and pay is broken.
In today's economic environment of limited compensation budgets, organizations have the opportunity to eliminate this culture of entitlement and instead establish a culture of accountability with a clear connection between performance and rewards. A pay-for-performance culture allows organizations to differentiate pay across different levels of performance while retaining their top talent.
Sibson helps organizations understand the key design considerations in developing an effective pay-for-performance culture, where employees are focused, productive, motivated and appropriately compensated — through both merit increases and incentive compensation if applicable — given their individual performance and the overall business results. We work with organizations to identify an approach that best achieves their objectives given their resources and then establish the framework for base pay delivery and incentive plan design.
Common issues our clients face: