More successful organisations are beginning to tie compensation directly to employee performance to drive incredible business results. Originally believed to be applicable only for sales professionals, pay-for-performance is proving to be effective at all levels and in all functions of an organisation.
Although pay-for-performance is gaining acceptance from both senior management and front line employees, most organisations lack the know-how to make it a reality.
RemCalc offers an easy-to-understand road map to apply pay-for-performance as a strategy within your organisation. It provides real-world insight into how to build a successful pay-for-performance culture that can literally transform your business.
What a well-structured pay-for-performance system can do to your business
Building a pay-for-performance culture may seem like an abstract vision for some organisations; however, it is considered a top tool by senior executives for achieving better financial results. And for good reason, a strong pay-for-performance culture has the ability to:
- unlock employee performance potential,
- keep your “superstars” happy, and
- ultimately drive a healthier bottom line.
How to ensure pay-for-performance will be successful in your business
It is important to realize that there is no one-size-fits-all approach to developing a pay-for performance culture. To be successful, you have to “think custom” and tailor a system to your unique business needs and existing HR processes. The answers to the following questions provide invaluable feedback in setting expectations and shaping a meaningful pay-for performance culture:
- Are the tasks that people are working on driving the business? How can you tell?
- Are your managers engaged with your employees throughout the year to make sure they execute their objectives?
- Are individuals executing against what is expected? Who is and who isn’t executing?
- Are you objectively ensuring that bonuses, increases, and promotions are given to those high performing individuals that you can’t afford to lose?
RemCalc is a strategic compensation tool designed to distribute scarce compensation equitably to employees based on their performance and other critical business factors. RemCalc lets you benchmark your staff against the market and objectively award short term incentives and increases to employees. You put equity and Integrity in your reward process.
RemCalc is a salary and bonus review tool enabling the distribution of salary increases and bonuses fairly based on criteria set by the organisation. The integrity and equity brought to the review processes by applying RemCalc allow organisations to report on the effectiveness of their financial controls.
RemCalc has been developed by Exousia Consultants and has the following features:
- Microsoft SQL Server database
- Import and export capabilities from MS Excel
- Graphic displays of graphs
- Friendly user interface – workflow driven
- Distributes a bonus or salary increase pool among employees based on criteria such as individual performance, team performance, scarcity and an infinite number of other criteria
- Market salary trends are determined and serve as a benchmark against which salaries are measured
- Allows an organisation to optimise its investment in high performing employees and avoid investing in under-performing employees
- Has the ability to view data across many different cross-sections of the organisation (i.e. race, gender, departments, performance categories, etc.) to ensure equity and integrity of the applied remuneration and/or bonus strategy
- Allow what-if scenarios to be created
- Allows for collective bargaining increases as well as other socially related adjustments
- Once the increases have been authorised by management, the payroll can be updated
RemCalc places great emphasis on a balanced approach to determining individual performance bonuses as well as performance related salary increases, and ensures complete alignment of these with organisation and market indicators through all levels within the organisation. It has a highly graphical and a friendly user-interface.