Evolve Pay for Performance
Shift from a one-size-fits-all to a tailored approach to base pay increases and bonuses.
- Budgets typically aren’t big enough for true differentiation among employees, and many managers do not bother trying to differentiate their direct reports.
- The annual merit increase process is lengthy with the involvement of many stakeholders, and the outcome has minimal impact.
- Today's work environment no longer supports a one-size-fits-all approach to base pay increases and bonuses.
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Speak With An Analyst.
- Get on-demand project support
- Get advice, coaching, and insight at key project milestones
- Go through a Guided Implementation to help you get through your project
Our Advice
Critical Insight
- Make realistic decisions on the base pay increase and bonus options that can be implemented.
- Have the courage to identify and define objectives that depart from the norm.
- Be creative in how you design an approach to achieve your defined objectives.
Impact and Result
- Redefine the objectives of providing base pay increases and bonuses to align process with practice.
- Design a tailored approach for base pay increases and bonuses that aligns with defined objectives in order to achieve desired outcomes.
- This will require a cultural shift in how organizations and employees view the purpose of such compensation programs, as well as transparency regarding what the organization is paying for.
Pay for Performance
This program has been approved for continuing professional development (CPD) hours under Section A of the Continuing Professional Development (CPD) Log of the Human Resource Professionals Association (HRPA).
McLean & Company is recognized by SHRM and can award Professional Development Credits (PDCs) for the SHRM-CP® or SHRM-SCP®.
HR Certification Institute's® (HRCI®) official seal confirms that McLean & Company meets the criteria for pre-approved recertification credit(s) for any of HRCI’s eight credentials, including SPHR® and PHR®.
How to complete this course:
Use these videos, along with the Project Blueprint deck above, to gain an understanding of the subject. Start with the Introduction, then move through each of the Course Modules. At the end of each Module, you will be required to complete a short test to demonstrate your understanding. You will complete this course when you have completed all of the course tests.
- Number of Course Modules: 5
- Estimated Completion Time: 1.5 hours
Learning Outcome
Examine how to align pay for performance with an organization’s context and people strategy, defining objectives for the approach and selecting appropriate methods to determine annual base pay increases and bonuses.
Learning Objectives
By the end of this course, learners will be able to:
- Explain why the current approach to pay for performance is not effective and how a new approach is needed to align with today’s work environment.
- Describe the three different objectives for a new approach and how to identify which is most appropriate for your organization.
- Discuss various options for annual base pay increases and bonuses, how they align to the three different objectives, and when they are most appropriate for an organization.
- Understand how to execute an effective rollout plan for compensation changes.
All of our McLean Academy courses have closed captioning available. To turn this function on, click on the C.C. in the bottom right corner of the video screen and click "English" on the options that pop-up.
Course Modules
Introduction
Module 1
Module 2
Module 3
Module 4
About McLean & Company
McLean & Company is an HR research and advisory firm providing practical solutions to human resources challenges via executable research, tools, diagnostics, and advisory services that have a clear and measurable impact on your business.
What Is a Blueprint?
A blueprint is designed to be a roadmap, containing a methodology and the tools and templates you need to solve your HR problems.
Each blueprint can be accompanied by a Guided Implementation that provides you access to our world-class analysts to help you get through the project.
Need Extra Help?
Speak With An Analyst
Get the help you need in this 4-phase advisory process. You'll receive 13 touchpoints with our researchers, all included in your membership.
Guided Implementation 1: Evaluate current pay for performance approach
- Call 1: Review employee value proposition, compensation philosophy, performance management practices, and the current annual base pay increase and bonus approach to highlight areas that will inform the design process.
- Call 2: Examine workforce data and culture, ensuring that there is a stated dominant culture and the organization is trying to help drive a desired culture with the approach.
- Call 3: Determine organizational readiness for change and the extent of change possible in the new approach.
Guided Implementation 2: Determine new objectives for base pay increases and bonuses
- Call 1: Determine if objectives will be by employee segment or organization-wide.
- Call 2: Identify the appropriate objective(s) for the approach.
- Call 3: Define each objective to reflect the organization’s strategy, structure, and culture.
Guided Implementation 3: Design base pay increase and bonus approach
- Call 1: Review and discuss each of the options for base pay increases and bonuses.
- Call 2: Identify the appropriate options for each employee segment or organization-wide.
- Call 3: Conduct a costing simulation exercise to identify high-level budget impacts.
- Call 4: Prepare for the stakeholder meeting to present the proposed approach.
Guided Implementation 4: Develop implementation plan
- Call 1: Identify risks and challenges in rolling out the proposed approach. Determine whether an organization-wide or pilot approach is appropriate.
- Call 2: Develop change management strategy and identify potential champions for change.
- Call 3: Create a manager and employee training plan to prepare the workforce for the new approach.
Contributors
- Kareen Clattenburg, Director of Total Rewards, Moneris
- Chuck Csizmar, Principal, CMC Compensation Group
- Eric Grobecker, Director – Global Compensation, Ingersoll Rand
- Irwin Jankovic, Ph.D., Strategic Program Manager – Human Resources Group, Metropolitan Water District of Southern California
- Ilia Maor, Research Director – Application Practice, Info-Tech Research Group
- Larry McMullen, Director – Learning & Organization Development, The Hillman Group
- Robin Miller Dewit, Senior Specialist – Talent Management, Hamilton Health Sciences
- Vatche Rubenyan, Senior Director Compensation and Benefits Programs, Rogers Communications
- Dow Scott, Ph.D., Professor of Human Resources and Consultant, Loyola University Chicago, Performance Development International, LCC
- Melissa Tucker, Vice President – Employee & Labor Relations, HealthNow Inc.
Build a Total Rewards Strategy
Craft a Compensation Philosophy
Design a Base Pay Structure
Conduct a Salary Assessment
Evolve Pay for Performance
The Rise of Organizational Transparency