If you were the CEO of a company, what would you do to your compensation and benefits plan to make it effective in aligning employee behavior and performance with the needs of the enterprise?
If I were the CEO of the company, I would revamp the compensation and rewards strategy of the company and make it performance based or performance aligned compensation. There will be 2 primary components of the compensation – fixed pay and variable pay. Fixed pay will depict the basic pay of the employee. Variable pay will be the performance based pay. The better the performance of the employee, the higher variable pay he will get.
Linking performance with pay helps in enhancing the overall ownership of the employees and making them accountable for their job role. The employees work with a competitive spirit and strive hard to make a relevant contribution in the company. The performance of the employees will be gauged on the Key Performance Indicators (KPIs) which will be based on the job role and will have alignment with the culture and business strategy followed by the company. This way, the employees will have a realization about the expectations of the company and will work hard to satisfy the same.
If you were the CEO of a company, what would you do to your compensation and...