A classic gainsharing plan is a group incentive plan that encourages employ-ees
to improve productivity through more efficient use of labor, capital, materi-als, and energy and then shares the resultant savings between the company and
employees according to a formula.
Some companies are experimenting with a movement to pay for the person rather than the job. This encourages employees to take responsibility for their own careers, addresses the needs for talents and competencies within the company more strategically, and promotes lateral career moves that enable the company to put people where they are needed and to develop employees more comprehensively.
A total rewards framework is a different way of looking at how employers pay
their employees. It is now finding its way into the thinking of compensation and human resources professionals at a number of companies.
Putting a portion of pay "at-risk" by shifting fixed pay to variable pay
increases the total pay potential a pay program affords. Difference in total
pay can be achieved by replacing a portion of fixed pay with variable pay.
Competitive advantage means taking advantage of the best all employees
have to offer. But how to drive the type of cultural changes that will give a
company a competitive advantage? One way to approach performance improvement
is with the support of an awards program for process improvement that
focuses employees on the right behaviors, or competencies, needed to take the
organization forward.
Many companies now have annual performance-based awards for company
executives. Generally, the higher the executive is in the organization, the
greater the percent of pay tied to performance goals.
