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Pay-for-performancesystem1330014040CherilynPay-for-performancesystemwhatLinkrewards(monetarymotivationfactor)toemployeeperformanceEnhanceemployeeperformanceInspiremaximumemployeeperformanceDriveincrediblebusinessresultsAmethodofincentivestrategyMeanttoimproveemployeeperformancebyofferingincentivessuchassalaryincreases,bonuses,andbenefits.whyPay-for-performancesystemWell-plannedpay-for-performancesystemcanbenefitthecompanyGoalalignmentIncreasedmotivationImprovedretentionCostreductionBenefits
GoalalignmentIncreasedmotivationImprovedretentionCostreductionPay-for-performancesystemManagersshouldstayintouchwithemployees’progressKeepemployeeperformanceontrackEmployeesunderstandtheirdailyactivitieshelpdriveoverallbusinesshealthCompensationdecision-makingisinformedbyaccurateandtimelyperformancedata.RewardindividualswhoseperformancehelpachievekeybusinessobjectivesGoalalignmentIncreasedmotivationImprovedretentionCostreductionPay-for-performancesystemFeelingundervaluedisthenumberonereasonpeopleandgroupsunderperform.Combiningcleardirection,qualityfeedbackandtangiblerewards,andrecognitiontojobsatisfactionandemployeededication.EmployeesareinspiredbyknowingmanagementtrulyvaluestheireffortsGoalalignmentIncreasedmotivationImprovedretentionCostreductionPay-for-performancesystemGigaInformationGroup:pay-for-performanceormeritocraticmanagementimproveretentionbyupto27%Example:Duringtheheightofthenursingshortage,onehospitalinametropolitanareaactuallyhadawaitinglistofnurseapplicants.Unlikemostoftheircompetitors,theypaidforperformance.Nurseswhowerenotpullingtheirweightwereencouragedtoleave.
Thehospitalspointofviewwasthatnooneshouldcarrylowperformersontheirunit.
Theirstrategypaidoffimprovingtheirretentionanddrivingqualifiedandmotivatednursestotheirhospital.EmployeesareempoweredtobeincontroloftheirfinancialsituationAkeytokeeptop-performersGoalalignmentIncreasedmotivationImprovedretention
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