新酬管理——工具和技術（英文）4

1、Salary Review Guidelines,Guidelines on the distribution of increments? an attempt to overcome the varying standards of judgment leading to an ‘a(chǎn)ll my ducks are swans’ approach to rewarding staff. The distribution scale

2、 may be related to a guideline like this:AssessmentIncrement (%)Distribution A – outstanding9 %– 10%10%B – good7% – 8%20%C – satisfactory4 %– 6%50%D – needs improvement0%10%E – unsatisfac

3、tory0%10%,Salary Review Guidelines,Guidelines on rates of progression? managers are helped to plan salary progression by being given an indication of the number of years it should take staff at different levels of

4、 performance to reach the top of the grade and, in zones of salary range, the limits within the range which can be reach according to their performance. AssessmentLimit In Grade Typical Length Learn

5、ing zone1 to 3 years 2 yearsPerforming zone4 to 6 years 5 years Exceeding zone2 to 4 years 3 years -,Salary Problems,Absorbing market rates pressures ? arises when general and indivi

6、dual salary reviews have not enabled the company’s salary levels to keep pace with increase in market rates.? it is exacerbated if the company is expanding and is compelled to obtain key staff who are in short supply.

7、Widening differentials? differentials are widening between and within companies in the following areas:- between high-and low-paying organizations – the variations in prosperity between differing sectors of indus

8、try and commerce and between regions are major contributors to this problems.- between companies paying bonuses or incentives and those paying straight salaries.,Salary Problems,- between top and middle management

9、within companies – this is partly incentive led - between executives recruited by search and those with a one-company career.Performance pay ? tend to favour the few whose results can be measured. ? merit-asse

10、ssment are too often based on subjective and biased judgments. ? can be avoided only by intensive training of assessors and by careful monitoring of the appraisal scheme.,Salary Problems,Staff reaching the top of their

11、 salary league? staff reaching the top of their salary range may feel demotivated if there are no prospects for promotion? it is possible to deal with this problem by introducing on top of the normal salary range a p

12、remium zone which is reserved for outstanding staff whose promotion is blocked.Starting salaries? the problem of starting new staff at higher rates than existing employees should be minimized if internal salary levels

13、 are regularly reviewed in comparison with market rates.,Salary Problems,Deteriorating job evaluation schemes ? the scheme may not have been controlled properly, so that grade drift occurs through unjustifiable upgrad

14、ings. ? scheme may have lost credibility because it no longer gives acceptable solutions. ? administration may have become so bureaucratic that the time taken to produce answers is unduly prolonged. ? the solution

15、is to make a determined effort to tighten controls and speed up administration, making only minor modifications to the scheme.,Objectives of Performance-Related Pay (PRP),Motivate all employees, not just the high-flyers.

16、Increase the commitment of employees by encouraging them to identify with its mission and values.Reinforce existing cultures and values to foster high levels of performance, innovation and teamwork.Help to change cult

17、ures where they need to become more performance- oriented and results-oriented; or where the adoption of other new and key values should be rewarded.Discriminate consistently and be equitable on the distribution of rewa

18、rds to employees according to their performance results and contributions.,Objectives of Performance-Related Pay (PRP),Deliver a positive message about performance expectations of the company – focuses attention on key p

19、erformance issues.Direct attention and endeavour by specifying the organization’s performance goals and standards.Emphasize individual performance or teamwork as appropriate.Improve the recruitment and retention of hi

20、gh-quality staff.PRP costs will be in line with company performance.,Key Factors to Consider When Introducing PRP,Matching the culturesuccessful PRP schemes need to match the culture and core values of the organizatio

21、n.Linking PRP to business strategythe focus needs to be on strategic business issues which emerge from the business planning process.Balancing quantitative and qualitative measureswhile most PRP schemes rely on qua

22、ntitative measures of performance, qualitative factors need to be introduced for the measurement of individual behaviour eg balanced scorecardsThe need for flexibilityflexibility in making ‘milestone’ payments which c

23、onvey the right messages for the future.The need to promote teamworkthe importance of teamwork should be recognized in structuring the scheme and defining critical success factors and performance indicators.,Key Fact

24、ors to Consider When Introducing PRP,The need to avoid short-term thinkingsetting long-term as well as short-term goals, and discussing short-term objectives in their overall context.Involvement in the design process

25、designing PRP schemes should be an iterative process : trying and testing ideas on measures and structures with those who will eventually be involved in a scheme.Getting the message acrossall types of PRP are very po

26、werful forms of communication. To get the right messages across for any scheme, one must make key decisions on the following:?How can the scheme achieve the best possible launch??Is it better to give no pay-out rat

27、her than a low pay-out??What is the best psychological moment for pay-out??What communications should be used to gain maximum motivational impact from payment??How should communications be handled when the sche

28、me requires changes?,,Competence bands,Excellent,Good,Satisfactory,Performance Levels,Performing,Learning,,,,,,,,,,,,,,,,,Competence and Performance-Related Pay Curve,Salary ($),Exceeding,Directly link individual perfor

29、mance with salary progression.Provide individualized progression rates.Recognize increasing competence gained through experience.,Advantages of individual Merit Payment Scheme,Disadvantages of Individual Merit Payment

30、Scheme,Dependent on the quality of performance appraisal; which can be arbitrary, subjective or inconsistent.Unless carefully conceived and managed, it can demotivate people who, although not be delivering spectacular r

31、esults are still important.Merit payment, as distinct from bonuses, create extra payroll costs when benefits such as pensions are related to base pay.A merit payment is, in effect, a permanent increase in salary, yet t

32、he quality of performance in future years may not justify this payment.Merit pay can result in an upward drift in payroll costs without a commensurate improvement in performance.Merit pay is effective as a motivator on

33、ly if rewards are clearly related to performance and are of a significant value.,Sales Incentive Plan,Business Objectives,Marketing Strategy,Sales Strategy & Coverage Model,Sales Job Definition,Quota and Crediting,Co

34、mpensation Plan Design,Sales Plan Implementation,,,,,,,,The Sales Plan,Total Compensation Architecture,Base Salary/Fixed Pay,Variable,Fixed,Target SalesIncentive for Quota Achievement,ProfitSharing,Recognition,Accele

35、rated Incentives for Quota Over-achievement,Total PotentialRewards,Performance,,,$ Earnings,,,FAT/MBO,StockOptions*,*Selective use based on position and performance, competency and future growth potential,Above quota

36、achievement,+,=,Incentive Schemes For Sales Staff,Where it is felt that sales staff need to be motivated by an incentive commission scheme the majority of companies find that the best approach is a basic commission on

37、sales volume or, in more sophisticated firms, on the contribution to fixed costs and profits of the sales of each product group or product. The standard commission is typically set at about one-third of salary to provide

38、 a noticeable incentive without adversely affecting feelings of security. A successful sales commission plan should satisfy all the criteria listed above for bonus schemes. But it is particularly necessary to ensure

39、the following:,Incentive Schemes For Sales Staff,A) The reward is fair in relation to the efforts of the sales representative. This means that attention has to be paid to setting and agreeing realistic and equita

40、ble targets, making allowances for special circumstances outside the control of the sales representative which might affect sales, and splitting commission fairly when more than one person has contributed to the sale

41、; B) The scheme directs sales effort in accordance with management’s policy on the product mix and does not encourage the representative to concentrate on what is easiest to sell; C) The scheme does not

42、encourage high pressure selling which results in an unacceptable level of returns, cancellations and complaints; D) The scheme does not encourage representatives to neglect their indirect selling activities, suc

43、h as servicing customers.,Criteria for Success of Incentive Scheme,It should be appropriate to the type of work carried out and the workers employed.The reward should be clearly and closely linked to the effort of the i

44、ndividual or group.Individuals or groups should be able to calculate the reward they get at each of the level of output they are capable of achieving.Individuals or groups should have a reasonable amount of control ove

45、r their efforts and therefore their rewards.The scheme should operate by means of a defined and easily understood formula.The scheme should be properly installed and maintained.Provision should be made for controlling

46、 the amounts paid to ensure that they are proportionate to effort.Provision should be made for amending rates in defined circumstances.,Individual Incentive Schemes,Straight piece-work? payment of a uniform price per

47、unit of production.? can be expressed in two main forms:- money piecework- time pieceworkDifferential piecework? the wage cost per unit is adjusted in relation to output.,Individual Incentive Schemes,Measured

48、 daywork? the pay of employees is fixed on the understanding that they will maintain a specified level of performance, but the pay does not fluctuate in the short term with their performance.? the criteria for succes

49、s in operating it are the following:total commitment of management, employees and unions.an effective work measurement system, and efficient production planning and control and inventory control procedures.the establi

50、shment of a logical pay structure with appropriate differentials from the beginning of the scheme’s operation.the maintenance of good control systems to ensure that corrective action is taken quickly if there are any s

51、hortfall on targets.,Group Incentive Scheme,Provide for the payment of a bonus either equally or proportionately to individuals within a group or team.Bonus is related to the output achieved over an agreed standard or t

52、o the time saved on a job.Group bonus scheme are in some respects equivalent to individual incentive schemes.It encourages team spirit, breaks down demarcation lines, and enables the group to discipline itself in achie

53、ving targets.Potential disadvantages are that management is less in control of production – the group decides what earnings are to be achieved and can restrict output.,Designing an Incentive Scheme,How performance will

54、be measured.The employees who will take part in the scheme and who will therefore have part of their pay directly linked to their own performance or group.The employees who will not take part in the scheme and how they

55、 will be compensated.Whether or not the scheme will be an individual one or one linked to group performance or related to plant performance.Whether the bonus payments will be related to basic pay.The proportion of pay

56、 which can be earned as bonus.,Designing an Incentive Scheme,The full basic rate.The relationship between output/effort and reward, eg the extent to which, if at all, there is a differential built into the scheme which

57、shares the results of higher productivity between the company and the workers.The basis upon which employees not earning bonuses will be paid.The timings of bonus payments and the lapse of time before payments are made

58、.The arrangements, if any, to alleviate the problems of large fluctuations in bonus payments.The methods to be used to maintain the scheme and to inform employees of their earnings,Aims of Bonus Schemes,The principal a

59、im of a bonus scheme is to provide an incentive and a reward for effort and achievement. Executive bonus schemes linked to company profits can also aim to make senior managers feel that their personal prosperity is link

60、ed to the performance of their company or unit.Bonus schemes are supplementary to basic salary and are most appropriate where they apply to entrepreneurial types such as chief executives, marketing men and sales staff w

61、ho, it is assumed, will strive for material reward, and whose results upon which their bonus depends can be clearly linked to their personal efforts and achievements.,Bonus Schemes Criteria,The amount of the award receiv

62、ed after tax should be sufficiently high to encourage staff to accept exacting targets and standards of performance. Standard bonuses should not be less than 10% of the basic salary and, if an effective incentive is want

63、ed , the standard bonus should be around 20% to 30% of salaryThe incentive should be related to quantitative criteria over which the individual has a substantial measure of controlThe scheme should be sensitive enough

64、 to ensure that rewards are proportionate to achievementsThe individual should be able to calculate the reward he can get for a given level of achievement,Bonus Schemes Criteria,The formula for calculating the bonus and

65、 the conditions under which it is paid should be clearly defined Constraints should be built into the scheme which ensure that staff cannot receive inflated bonuses which may not reflect their own effortsThe scheme sh

66、ould contain provisions for a regular review, say, every two or three years, which could result in its being changed or discontinuedThe scheme should be easy to administer and understand, and it should be tailored to m

67、eet the requirements of the company,Executive Bonus Schemes,There are innumerable formulae for executive bonus schemes, and each company must adopt one which suits its own circumstances. The simplest formula is for a per

68、centage out of net profits before tax to be paid Pro- Rata to the executive’s basic salary. In some schemes, dividend payments and provisions for reserves are deducted from net profits before the distribution of bonuses

69、and there is usually an upper limit to the amount of bonus that can be paid. These schemes are crude but provide a direct incentive as long as results are directly influenced by the actions of the executives in the schem