Building your company’s performance culture
Today’s marketplace is competitive. What ultimately counts is the bottom line and companies are constantly seeking ways to maintain a competitive edge. In doing so, a huge challenge they face is the ability to attract and retain high-performing employees.
Generally speaking, a lack of transparency and clarity around pay raises, career path and promotional opportunities are common reasons why employees leave a job. This is why compensation management aligned with a performance culture is critical to recruiting and retaining top talent. High-performing employees are attracted to companies that recognize the skills they bring to the table, offer a clear career path and succession planning, while also providing a benefits package that meets and satisfies their personal and financial needs. As a matter of fact, companies that have adopted an integrated approach to reward strategy, report higher employee engagement and have fewer problems in attracting and retaining these key employees, according to a study by Towers Watson.
Key benefits of pay-for-performance
- Attracts and retains top performers
- Improves employee motivation and engagement
- Provides employees with a transparent career path
- Helps HR and company executives to see and create efficiencies
- Fosters a sustainable culture by providing transparency and encourages best practices
- Enables companies to control ROI by controlling the overall budget and avoiding overpaying people for average performance
In short, a corporate compensation management programme aligned with a properly implemented performance culture, blending continuous feedback with annual appraisals, is critical to recruiting and retaining top talent.
Effective-People has worked with global compensation, complex bonus programmes, market data, compensation planning principles, variable pay, STI, LTI and other related topics for more than 10 years. Read the whitepaper Building your Companys Performance Culture and contact us today to hear more about how we can assist you in improving your compensation and pay for performance processes.