Using an Effective Pay for Performance Bonus System to Drive Business Results and Retain Top Employees
CHAPEL HILL, N.C., Oct. 10, 2013 /PRNewswire/ -- In today's tough economy, hiring and retaining gifted employees who can drive business results is challenging as competition for talent increases. In this environment, organizations are re-shaping incentive programs to improve the productivity and retention of employees.
Compensation leaders believe that a well-conceived and well-executed pay for performance program can improve productivity and retention by ensuring that employee goals and objectives are directly aligned with corporate strategic goals.
To help compensation organizations understand how other industries and high-performing companies deploy their pay for performance systems, research and consulting firm Best Practices, LLC conducted a benchmarking study. The research project, which involved human resources leaders across industry sectors, evaluates incentive systems with the goal of identifying strengths, gaps and improvement opportunities.
Successful implementation of pay for performance is a multi-step process involving demonstrating need, aligning with corporate goals, deploying appropriate technology, communicating to and training all employees, and measuring and improving results, according to the study.
The study, Driving Growth & Talent Retention through Pay for Performance, investigates how compensation organizations at leading global companies are structuring and implementing pay for performance annual bonus programs to reward top performers and retain talent.
While pay for performance systems usually are used to retain top performers, almost half of the study's large workforce segment said decreasing over-payments to low performers was also a primary reason for using a pay for performance system.
The study explores these key areas:
- Annual Bonus Plan Metrics & Eligibility Strategy
- Global Annual Bonus Plan Uniformity
- Target Bonus Percentages by Job Level
- Minimum Bonus Percentage to Motivate
- Pay for Performance Drivers, Goals, & Program Components
- Implementation Metrics and Success Factors
- Communicating Pay for Performance Rollout
- Implementation Challenges and Pitfalls
The study results will help compensation leaders create and maintain effective pay for performance programs. The data in the report is based on input from 47 talent and compensation leaders from 17 industries who provided both quantitative and qualitative data.
To access the full report or to download a complimentary summary, click on the following link: http://www3.best-in-class.com/rr1238.htm.
ABOUT BEST PRACTICES, LLC
Best Practices, LLC is a leading benchmarking, consulting and advisory services firm serving biopharmaceutical and medical device companies worldwide. Best Practices, LLC's clients include all the top 10 and 48 of the top 50 global healthcare companies. The firm conducts primary research and consulting using its comprehensive proprietary benchmarking tools and analysis. The operational insights, findings and analysis form the basis for our Benchmarking Reports, databases and advisory services to support executives in commercial and R&D operations.
SOURCE Best Practices, LLC