SUCCESSFACTORS / WHITEPAPER WInnIng THROUgH TAlEnT In UnCERTAIn TImES Question to Ask Do your employees feel they’re “in the know”? Do they know what your plan is to “weather the storm” and come out a winner? Do they know: • How the organization’s goals and objectives have shifted due to recent changes? • How they can contribute to the execution of the strategy? • What success looks like? When do you expect it to materialize? • How to measure progress? 5. Compensate more strategically: pay only for performance Now is the time to think about how you can compensate more strategically to make your payroll go further. Don’t make the mistake many companies make — spreading the available comp budget evenly, based only on position/title or job level. Instead, think about how you can optimize your spend by compensating based on individual performance. Pay-for-performance is considered a top tool by senior executives for achieving better financial results — in good times, and in bad. And for good reason: a strong pay-for-performance culture is a key element in getting employees to excel at maximum levels. How? By combining clear direction, quality feedback and tangible rewards, and recognition — key components to job satisfaction and employee dedication. Question to Ask A pay-for-performance culture can also Are you r com pensat ion decisions tied to help your company save money in a way specific performance goals for each employee? you may not think of: avoiding • Do you know which employees are contributing the overcompensation. Companies can waste most toward achieving your strategic goals? Are literally thousands of dollars a year by those top-performers getting higher comp as a rewarding individuals whose performance result? doesn’t help achieve key business • Do your top-performers and bottom-performers get objectives. The ongoing accountability the same bonuses? Are they equally affected by pay developed in a pay-for-performance freezes? culture helps avoid this pitfall. • Are you over-paying your under-performers? Finally, recognizing and compensating top • Do employees know exactly what they need to do to performers is the key to retaining the best earn meritocratic pay? and brightest. According to Giga • Do employees believe last years’ compensation Information Group, retention can be decisions were fair and realistic? improved by meritocratic management • Are you losing top performers due to compensation — or pay-for-performance — by up to issues — lost bonuses, competitors offering more 27%. attractive packages? 9