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If you are not expanding the differentiation in pay between high and low performers you are most likely:
But how do you define top performer, and how do you communicate little or no increase to the low performers? Ratchet up your focus on this critical compensation issue now—and be ready to implement it successfully in your next round of merit pay increases.
Companies that utilize best practices in differentiating pay between high and low performers consistently say—by more than two to one—that it is the most effective way to control compensation costs.
Using pay-for-performance, the next most effective, while related is just one of a variety approaches used to differentiate high/low performers. Even more profound is the effect that greater differentiation of pay has on your firm's productivity.
The biggest questions surrounding an effective company-wide differentiation of high/low performers include how define top performance or contribution to the company, weak kneed managers, how to send a strong message when communicating little or no pay increase, what is exceptional vs. above average, what are typical spreads between high and low performers, how do you build a lasting talent management plan into the process, and how do you hold the line on the top performers?
Don't get trapped into simply resorting to reducing the overall size of merit pay increase budgets. Listen in to our panel of in-the-trenches experts and learn the secrets to differentiating pay, including how to:
The recording of this entire audio conference, on CD, is available here—to revisit on your own, or share with colleagues and associates. Your purchase includes the original presentation handout—PLUS the extended Q&A with our speakers. What are you waiting for? ORDER NOW!
Jay. R. Schuster
Five easy ways to order
YES! Rush me copy(ies) of IOMA's Differentiating High/Low Performers—Making the Tough Decisions for 2009 audio conference recording for $275 each. (Order Code 8C04R)
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