Compensation Alignment
What's it about?
Are you sure you are rewarding the right people for the right things? Are your compensation decisions seen as fair and just, or as arbitrary? Can your employees see the connection between their actions and their compensation?
How's it done?
We often see pay-for-performance systems that make it easier to treat everyone like a star performer so that it actually diminishes the real stars and masks issues of poor performance. Managers and executives need pay for performance tools that allow them to question the performance distribution in their organizations and ensure they truly represent actual performance. Make sure all of your compensation decisions are driving people to higher levels of performance and not out the door.
What's the return?
Estimates indicate that a visible compensation alignment process can reduce compensation-related turnover by over 20%. At a conservative administrative cost of $9500 per replaced employee the cost savings add up quickly without even considering the productivity losses due to needless turnover.
Features
Reward and retain top performers. Our TMS Compensation Alignment tools support the fair distribution of ratings between high and low performers which then simplifies the manager's task of justifying differences in ratings. We use differentiated ratings to provide recognition and improved retention among top performers and to indicate where improvement is necessary for others.
Drive higher levels of performance. Our imbedded collaborative review processes draw direct connections between actions and compensation. State-of-the-art dashboards provide early warnings of delays that can translate into poor performance situations.
Make it easy. TMS graphic charts provide managers and executives with a clear picture of the distributions of ratings across their organizations and allow drill-downs for further analysis. We give you the ability to set up target distributions that can be used by TMS to quickly draw attention to areas where ratings vary too far from the norm.