(Top) Pay for (Best) Performance |
In a sluggish economy, compensation system gets a new focus by
rewarding star performers more than the rest of the pack |
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3-P
Compensation: Pay for Performance |
In this article we look at how an organization develops a motivating
and rewarding incentive plan. |
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An
executive perspective on employee benefits |
Executives say employee benefits help companies compete but have an
incomplete understanding of benefits and how they perform. Results
of a McKinsey Survey. pdf-file. 2006. Article starts at page 12 |
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An
Overview of Recent Trends in Incentive Pay Programs |
This article examines recent trends and developments in an
increasingly popular HR practice--incentive pay programs. Pdf-file |
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Analyzing Compensation Data |
Guide describes three approaches that Federal contractors may use to
analyze their compensation systems; analyses may be useful in
determining if there are patterns of discrimination in the
workforce; focus is on analyses of salaries or wages, procedures
can be used to analyze other forms of compensation as well. |
TOP |
Are
Higher Pay Increases Necessarily Better? |
This study investigated the relationship between pay increase
percentages and pay satisfaction among 118 MBA students and found
that pay satisfaction had the largest increase between three percent
and seven percent and appeared to level off between seven percent
and eleven percent, suggesting that there may be a point at which
high pay increases may not necessarily lead to more satisfaction. In
addition, it was found that pay increases between six and eight
percent are the minimum amounts needed for pay increase
satisfaction. Finally, we suggest that employees may not need as
high of a pay increase to experience satisfaction with their pay
increase when providing those employees with a signal, such as an
average pay increase. pdf |
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Best Practice Guidance to Managing Compensation Prior to an IPO |
IPOs have been with us for a long time. There is nothing really new
about the process, be it in the United States, the United Kingdom,
or elsewhere. What is changing, in general, is the attention
organizations give to corporate governance issues. In particular,
organizations focus on how to handle executive compensation issues
during the IPO process so that they are better prepared to deal with
the public scrutiny post-IPO. The period leading to the IPO provides
a unique opportunity for an organization to review its compensation
programs and to make dramatic changes, if needed, without all the
public scrutiny. It is an opportunity that will not occur again. pdf |
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Building a Better 401(k) |
401(k) plan sponsors are taking steps to make their plans more
attractive to employees in 2003. January 2003 |
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Compensation Planning: The Key to Profitability |
This book can help brokers create effective individual company
compensation plans by giving them a better understanding of how
changes to existing compensation schedules affect the company
finances as a whole. Pdf-file 3.6 MB |
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Compensation Plans |
An overview, article provided by Salary Source |
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Explaining Executive Compensation |
Managerial Power vs. the Perceived Cost of Stock Options. Working
Paper. Pdf-file |
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Glossary |
Of Employee Benefit Terms |
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Is
Pay-for-Performance Detrimental to Innovation? |
Previous research has argued that compensation plans based on the
pay-for-performance principle are effective in inducing higher
levels of effort and in avoiding diversion of funds by managers. How
should managerial compensation be structured if the goal is to
induce managers to pursue more innovative business strategies? In a
controlled laboratory setting, we provide evidence that the
combination of tolerance for early failure and reward for long-term
success is successful in motivating innovation. Subjects under such
an incentive scheme explore more and are more likely to discover a
novel business strategy than subjects under fixed-wage and standard
pay-for-performance incentive schemes. We also find evidence that
the threat of termination can undermine incentives for innovation,
while golden parachutes can alleviate these innovation-reducing
effects. pdf 2011 |
new |
Is
Your Long-Term Incentive Plan Really Performance-Based? |
Long-term incentive plans (LTIPs) typically provide the largest
component of senior executives’ compensation, most often through one
or more of three equity-based types: stock options, restricted
stock, and what are often called performance shares. This article
focuses on performance shares, an increasingly common form of
performance-based LTIPs, and their importance as a major component
of executive pay. We believe that performance shares establish the
strongest link in tying compensation to performance. The article
also presents data on the increasing prevalence of these types of
plans. pdf |
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Labor Statistics |
Extensive compilation of statistics and data |
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Misc. Issues |
Overview on some compensation- and benefits-related issues: pay
equity, variable pay systems, stock plans, retirement plans, health
and welfare plans, paid time off, government mandated benefits |
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Offer a Choice of Compensation Plans to Gain a Competitive Advantage |
pdf-file 2003 |
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Organizational Pay Mix |
The Implications of Various Theoretical Perspectives for the
Conceptualization and Measurement of Individual Pay Components.
Pdf-file |
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Organization-wide Broad-based Incentives: Rational Theory and
Evidence |
Despite the widespread use of incentive pay, there is limited
evidence about what factors influence its organization-wide,
broad-based application. Pdf-file |
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Paying for Performance: An Overlooked Opportunity |
Sales force deployment and compensation are among the most powerful
means a company has to improve growth, market share, and
profitability. Yet few companies take the time to align their payout
systems with current strategy. The author explains how to design a
successful compensation plan that is precise, fair, and simple. pdf-file |
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Performance based Pay |
The Value of Performance-Based Pay in the War for Talent, pdf-download
version |
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Performance Standards in Incentive Contracts |
Research in incentives has focused on performance measures and
pay-performance sensitivities but has largely ignored the
“performance standard,” which generates important incentives
whenever plan participants can influence the standard-setting
process. Working paper. pdf-file |
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Promise and Peril in Implementing Pay for Performance: A Report on
Thirteen Natural Experiments |
Despite the popularity of pay for performance programs, very little
research has examined the dynamics and dilemmas associated with
implementing these programs. We studied the implementation of
thirteen experiments in pay for performance that were initiated by
local management in a high-commitment company (Hewlett Packard). We
examined Hewlett Packard documents and interviewed managers to
understand their experience with implementing these programs.
Managers reported a relatively unfavorable cost-benefit assessment
of programs and difficulty in designing and maintaining them,
especially in a fast changing business environment. Managers at each
site eventually concluded that they could attain greater
performance benefits through alternative managerial tools like
effective leadership, clear objectives, coaching or training, and
therefore discontinued their pay for performance programs. Finally,
we discuss implications for management and for future research. pdf |
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Team Based Incentives - Do They Work? |
Includes 5-step example of how to create a compensation plan. |
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Time To Redo Your Benefits? |
Know the key factors that should trigger a re-evaluation of your
benefits package. |
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Voluntary Employees Beneficiary Association |
Benefits of Forming a Voluntary Employees Beneficiary Association.
September 2003 |
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When Stock Options Fail to Motivate |
Attribution and Context Effects on Stock Price Expectancy. Pdf-file |
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