Performance Measurement & Compensation
Companies provide feedback to employees through their performance measurement & compensation design. Linking your employees’ compensation to their performance creates accountability and aligns employee’s interests with those of the company.
Improper alignment between your business’s performance measurement & compensation system can encourage the wrong behavior from your employees and distract them from focusing on the factors that are most important to the organization’s success.
Improve Employee Satisfaction
Employee satisfaction will improve when your compensation and performance measurement system are correctly aligned. Employees will feel appreciated when they are monetarily compensated for contributing to the company’s success.
No matter how loyal your employees are, nothing will motivate them more than cash-in-hand. Tying compensation to performance aligns employee interests with the company and help you prioritize their work without having to micro-manage.
Six Sigma for Small Business
Six Sigma, Total Quality Management (TQM) and other similar operational strategies have their place in small business, but not in the form you find in large companies. We can help you understand how to adapt these big business concepts to your small or mid-sized business.
We can help in the following areas:
- Identification of Key Performance Indicators (KPI)
- Development of compensation programs aligned with KPI
- Establishment of efficient mechanisms for tracking performance
- Analyze costs of compensation and benefit plans
- Assess effectiveness of compensation programs in improving performance
If you are feeling like you are having to specify every action your employees take and explain each minute detail required of them there is a good chance there is a problem with your performance measurement & compensation design. By identifying metrics that are most critical to your business’s success and tying them to properly empowered employees, you will better position yourself to leverage untapped resources in your organization.
Call us today to find out how we can help evaluate and improve your performance measurement & compensation design.
Companies provide feedback to employees through their performance measurement & compensation design. Linking your employees' compensation to their performance creates accountability and aligns employee's interests with those of the company.