Compensation & Recognition
Some people overestimate the impact of compensation on people’s motivation
to work. More important, is the need to adjust levels of pay to what is
appropriate and what you can afford to pay, given the state of your business.
To be competitive in the business environment you face, here are several
questions for consideration:
- Are your job descriptions current?
- Have they been benchmarked against available standards?
- Has your compensation philosophy been established regarding where
you want to pay relative to the market? What is your payroll as a percentage
of revenue? Can you sustain that level of compensation once your strategy
is established?
- Do you use an incentive system? Do your employees understand how
their incentive pay is calculated and what they can do to impact the
payout? Do your employees accept the impact of lean times on the incentive
program?
- Do you have a non-cash recognition program that is valued and yet
not inadvertently creating a tax liability for your company or the recipients
Spirk & Associates stands ready to help you with the design, communication,
and implementation of any of the above items, given several years of experience
with systems that range from non-cash incentives, through gain-sharing program
design, and more.
