Path to pay for performance
Download as PPT, PDF1 like685 views
The document discusses the development and implementation of pay-for-performance compensation programs for nonprofits, emphasizing the importance of internal equity, market competitiveness, and aligning compensation with organizational values. It outlines the essentials of performance management, including communication, job descriptions, and performance evaluations, while also addressing barriers and considerations in constructing salary policies and ranges. Additionally, it highlights the importance of non-cash rewards and professional development in enhancing employee motivation and retention.
![Joe Brown Slope Resources [email_address] 908 241-8592 sloperesources.com twitter.com/joe_brown Thank you!](https://image.slidesharecdn.com/pathtopayforperformance-100623140939-phpapp01/85/Path-to-pay-for-performance-17-320.jpg)
Path to pay for performance
- 1. The Path to Pay for Performance Joe Brown Slope Resources Nonprofit HR Symposium San Diego, CA June 16, 2010
- 2. Founded in 1998 Human resources and organization management consulting services for nonprofits Compensation and performance management “ Big firm” background Blog: Done by People
- 3. How many utilize… Formal pay for performance program Formal, non-performance-based compensation program Informal/ad hoc compensation practices Where are you? ?
- 4. Barriers to pay for performance?
- 5. Building blocks Reward opportunity Compensation program Internal equity Market competitiveness Performance management program Individual/team contribution Actual rewards Performance Base salary Incentive compensation $
- 6. What… Job responsibilities Goals … how Competencies Expectations Performance management program essentials
- 7. Focus on “management”… … not “evaluation” or “rating” Emphasize communication… … not the form Keep it simple… … and make it fit Performance management program essentials
- 8. Communication and input Job descriptions Employee ► manager ► HR Grouping/grades Assess internal equity Compensation program development
- 9. Identify markets Assess market competitiveness Published surveys Custom surveys Informal data collection … caveat emptor Compensation program development
- 10. Articulate compensation philosophy What does the organization pay for? What values should be communicated and reinforced? In what forms is compensation delivered? What budgetary constraints are reflected? How competitive should compensation be? With what market(s)? Compensation program development
- 11. Develop salary policy E.g.: median of metro area organizations with operating budgets of $5 million to $10 million Costs Under minimum Equity increases Short-term/long-term targets? Compensation program development
- 12. Construct salary ranges Compensation program development Minimum (80%) Maximum (120%) Midpoint (100%) Performance over time Low High Average Hiring range
- 13. Salary administration guidelines New/changed jobs Promotions Hiring Over maximum Implementation Communication and feedback Compensation program development
- 14. Merit increases Performance evaluation Position in salary range Merit increase
- 15. Periodically… Review internal equity and market competitiveness Adjust salary ranges Ensure alignment with compensation philosophy Compensation program management
- 16. Continue building Strategic planning Non-cash rewards Professional development Career development Succession planning
- 17. Joe Brown Slope Resources [email_address] 908 241-8592 sloperesources.com twitter.com/joe_brown Thank you!