Compensation Plan Samples
Every organization keeps wondering whether its compensation plan is working. The employees are responsible for driving a business to success or failure depending upon the service they offer clients. The overall quality of service ultimately depends on the type of compensation plan an organization offers its employees.
There are no shortcuts to forming a compensation plan. Many organizations take compensation plan samples from other organizations and then try to mold it to theirs. Even these compensation plan samples have to be perfected and this takes time, patience and fine-tuning. However, successful organizations have realized that compensation plan samples must allow real-time measurement, observation and feedback in order for the plans to be successful. They are not afraid to recognize failed plans.
In order for compensation plan samples to be successfully incorporated in an organization, the following questions should be considered:
- How do you influence management compensation in the organization and what is your role?
- Do your performance incentives motivate or demotivate employees?
- Why the compensation plan samples are successful in other organizations?
- Do you have systems and procedures in place to measure satisfaction?
Not all compensation plans are identical. When you take compensation plan samples, you should ensure that they fit into your organization and this can mean re-organizing the samples to suit the requirement in your organization. With the compensation plan samples, you should design a compensation plan that is custom tailored to fit your organization and this has to be done by collectively working with the key stakeholders of the organization.
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