Blog

Pay for Performance: Driving Alignment and Merit Pay Program Success

Written by Kara Deyermenjian

November 7, 2017

Pay for Performance: Driving Alignment and Merit Pay Program Success Hero

In every organization, there are different business units with very different sets of priorities. Pay for performance affects each of these departments and their people in a unique way, and you need to be prepared to communicate how your pay-for-performance policy can help them reach their unique goals – and ultimately gain their buy in on your merit pay plans.

Employees: Communication is Key

When it comes to employees, helping them understand how and why they are paid a certain way can make the difference between a happy, productive workforce and a disgruntled one. HR professionals can facilitate pay transparency by empowering managers to confidently communicate about pay for performance.

Managers: Engagement is Paramount

Ensuring employees are engaged and performing at a high level is part of any manager’s role. Providing training on your organization’s pay-for-performance model allows managers to have the data and tools they need to keep their employees engaged, happy, and understanding how quality work relates to their pay.

Recruiters: Pay for Performance can Attract the Right People

In the world of recruiting, getting an offer out to candidates quickly is key to securing top talent.  Arming recruiters with data and information around how your organization pays for performance can help them land a best-fit candidate.

Finance: Money Talks

The finance team is typically going to be very mindful of staying within budget when HR is crafting a pay-for-performance plan. Putting their minds at ease involves delivering budget models and merit matrices that help you make a strong case for why you need a certain amount of money to carry out your pay-for-performance programs successfully. Getting finance on your side isn’t as hard as it may seem – just be sure to come prepared with data to support your plan.

Executives: Focus on the Big Picture

Executives have the luxury of looking at your pay-for-performance plan from a “big picture” level. They want to ensure that compensation, HR, and finance are aligned on cost of plan implementation and expected outcomes. Providing visual representations of the projected ROI for your plan allows them to quickly understand the implications of your pay strategy, and can help you secure a quick sign-off on your plan.

Link to this article
sidebar
Download Our Resource
Embracing Fair Pay in the War for Talent

Download our white paper to further understand how organizations across the country are using market data, internal analytics, and strategic communication to establish an equitable pay structure.

Insights You Need to Get It Right

The latest research, expert advice, and compensation best practices all in one place.
Ask This Question Before Transitioning Your Team to Long-Term Remote Work
Ask This Question Before Transitioning Your Team to Long-Term Remote Work Blog
As companies plan their return, some find there may be benefits to maintaining WFH.

Read More

2021 Trends: Compensation & Workforce Transformation
2021 Trends: Compensation & Workforce Transformation Guide
We're seeing a renewed sense of optimism and workforce innovation in 2021.

Read More

DE&I Panel Discussion: Moving the Conversation Forward
DE&I Panel Discussion: Moving the Conversation Forward Webinar
In this panel discussion we will cover what the issue is when improving DE&I.

Read More

Differences Between HR-Reported and Crowd-Sourced Compensation Data
Differences Between HR-Reported and Crowd-Sourced Compensation Data White paper
To make decisions about the value of a job, you need data from a range of sources.

Read More

CompAnalyst Market Data: Smart Matches, Fast Prices, and New Insights
CompAnalyst Market Data: Smart Matches, Fast Prices, and New Insights Product Sheet
The CompAnalyst Market Data platform is easier to use than ever before.

Read More

It's Easy to Get Started

Transform compensation at your organization and get pay right — see how with a personalized demo.