To attract, motivate and retain a skilled, diverse, and the global workforce with limited budgets; Organizations need to take strategically align their workforce vis-à-vis business objectives by adopting best practices of pay-for-performance principles. Under a performance-related pay philosophy, employees are offered a financial incentive for meeting certain predetermined and quantifiable goals.
A Payscale report reveals that more than 60 percent of the fastest growing enterprises using pay-for-performance principles and they are seeking solutions to address following four challenges to aligning workforce even more productive way:
- Not everyone is motivated by money. While the importance of pay can’t be overstated, it remains true that not everyone is motivated by pay. Some employees are motivated by praise, recognition, or the opportunity for better assignments. Organizations will have to offer more than money to get the most from this workforce category.
- Incremental annual base compensation is not a differentiator. According to a recent survey by leading workforce research agency, 3 to 5 percent is new normal for salary rise annually. If employers can’t provide top performers appreciably more than mediocre and low performers, then what they do offer is unlikely to be very inspiring.
- Meaningful evaluations are missing from Managers. Most organizations claim to pay for performance philosophy and strategy. But for many, there is a disconnection between words and actions. Additionally, managers who know how to write a good review—that is, one that clearly links the rating with a measurable objective—must be trained in competently communicating and advocating for your compensation philosophy, or your efforts at pay for performance will fall flat.
- Accountability of SMART in the true sense. SMART goals are specific, measurable, attainable, realistic, and timely. Attempting to hold an employee accountable to the goal is not easy nor practically possible. On the other hand, a manager could develop the smartest goals around, but if they’re presented to the employee at the beginning of the review period and then never discussed again until the beginning of the next< review period—when much has changed in between—the process won’t be very effective.
VisionTree addresses these challenges by clubbing pay-for-performance with Continuous Performance Management and Compensation Modelling with SAP SuccessFactors Transformation Service.
It additionally addresses following Grassroute practical situations prevailing at the digital workplaces.
- Reduce risk with configurable workflows, approval rules, validation checks and reports that increases process efficiency, improve budget accuracy and help ensure compliance.
- Gain the visibility into budget utilization across your organization with roll-up reporting.
- Continuous real-time update employee effort, success probability and comments directly through the mobile app
In order to explore the above features and many others whereby the organization can put people at the heart of your HR transformation to improve the employee experience with SAP SuccessFactors, Let’s connect.