Written by Kara Deyermenjian
November 7, 2017
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.
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.
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.
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.
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 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.
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.