The time for compensation decisions is upon us. And although pay does not impact employee engagement – unless an employee is underpaid relative to local market – modern workplaces demand modern pay practices. According to BambooHR, “Business leaders need to utilize their compensation dollars where they’ll have the most impact and inspire the best results.”
If a manager understands compensation strategies, how to effectively communicate pay decisions with employees, and how to build a pay-for-performance culture, compensation can be used to motivate performance and illicit desired behaviors.
From my experience, compensation is an area where many managers are left to their own devices. Help is usually not offered about how to effectively communicate pay decisions. And many times, managers are given a pool of money with strict parameters around how to dole it out. Clearly, we can do better.
WHAT CAN I DO? In my keynote speech I speak about four areas where managers should focus in an effort to inspire the best results. I have to admit, compensation is not one of them! But after reading BambooHR’s new eBook, I now see how compensation can make a positive impact if managed correctly. Check out the eBook here.
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