Description:
Design a compensation model that directly ties employee earnings to performance results.
Duration: 10-14 weeks
Major Activities:
- Define performance metrics and link to compensation outcomes
- Develop pay-for-performance calculation methods (salary increases, bonuses, etc.)
- Align compensation strategy with business and departmental goals
- Train managers and employees on new pay structures
- Implement monitoring and evaluation systems
- Adjust pay-for-performance structures based on feedback and results
Deliverables:
- Pay-for-performance framework
- Performance metric definitions and tracking guidelines
- Compensation adjustment calculation tools
- Employee and manager training materials
- Post-implementation review and refinement plan
Project Tips:
✅ DO:
- Ensure performance metrics are clear, fair, and measurable.
- Regularly review pay-performance correlations for effectiveness.
- Communicate expectations clearly to avoid misunderstandings.
❌ DON’T:
- Assume one-size-fits-all—different roles may require different pay models.
- Reward individual performance without considering team contributions.
- Ignore employee concerns—engagement is key for adoption.