Performance & Reward Solutions
The most financially detrimental conflict within many organizations is that which exists between their reward systems, organizational objectives, and performance management methodologies. With our innovative custom-designed performance management, base pay and incentive compensation systems, we help organizations align their employee and executive efforts and reward systems behind enterprise strategic intent. We design and help you to deploy performance enhancement and reward strategies that directly drive business growth, revenue and profitability improvement, as well as shareholder value.
A significant risk that your organization faces is “stranded compensation” costs…when individuals or entire departments are paid more than what their true economic value is to the organization and its customers. It is very like paying too much for a piece of machinery…some of the money spent on the machinery would be more wisely spent elsewhere.
Many performance appraisal processes now in use have contributed dramatically to stranded compensation expenses largely because of their subjective design and because they are single dimensional (supervisor to subordinate). An even greater risk to your organization is presented when a complex competency-based performance management system is utilized, all of which have substantial research proving their inaccuracy and inability to improve either individual or organizational performance. To the contrary, what must be measured and continuously improved upon is each person’s contribution to measurable business results.
Fundamentally, our systems are designed to reward executives and employees when their behaviors and contributions directly support and create what the organization is attempting to accomplish without being at the expense of shareholders or customers.
Organizations that tend to undergo repetitive layoffs, declining financial performance, and lost market share are fascinatingly the same organizations that have tended to miscast their performance management and reward systems.
Our work generally begins with an analysis of the client’s current goal setting, performance management and reward system approach while developing an understanding of the business at the operating and P&L level, related financial metrics, organizational culture, market challenges and strategic plans. We then develop innovative performance management and reward systems that support all organizational intentions while maximizing behavioral and financial returns.
We ensure that all reward system and performance management components are simple and easily understood, strategically linked, market data based, and directly supportive of the organization’s financial and brand objectives.