Pay for Performance

Pay-for-performance (a.k.a. differentiated pay, alternative compensation, merit pay, etc.) can be a controversial salary topic, one that oftentimes pits leadership and bargaining units against each other.

Pay-for-performance goes beyond the traditional reliance on seniority, graduate level credits, and other ‘organization-based’ criteria, and promotes individual and/or team performance in the advancement of the organization. While commonplace within private sector organizations for decades, pay-for-performance is still generally new to the public sector.

Like any powerful tool pay-for-performance requires education, regular and skillful maintenance, and can do more harm than good if misapplied. Whether your organization is implementing pay-for-performance for the first time, or trying to improve the effectiveness of an existing plan, there are some critical steps that must be followed to ensure success.

Either as part of a complete compensation study or an individual compensation project, Richardson Compensation Consulting, LLC can review your performance management program and guide your organization through the development and implementation of pay for performance in a manner that is 1) understandable 2) defendable and 3) compliant and aligned with your HR strategy and business objectives.

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