Compensation

Rockie

Have any of you got any ideas for a compensation system that rewards top performers of the company over and above what the percentage increase is for the year? Our rating scale goes from 1-5 and before I came on board, most people were receiving 5's even if they just showed up for work. No one wants to be considered a "3" as they think this means just average. If they read the attached narrative, a "3" means a fully functioning employee that is performing duties of the position. Anyway...it's been an educational process trying to get supervisors to understand that not everyone in the organization is a Level 5 employee, or even Level 4. Most should fall into the Level 3 category.
The upshot is that we will be changing evaluation systems the first of the year. Although we will still use the Level 1-5 categories, they will be graded differently. I would like to give over and above to those employees who are truly top performers and go beyond the call of duty, participate and contribute in the success of the company.

Do any of you have any type of reward/incentive system to reward these top performers? Any ideas would be appreciated. Thanks.

Margaret Morford

I would radically change your review system and do some training with the managers on the new system. This would be an excellent time to do general training as well on how to do a performance appraisal. With the change in the system, it will give the managers an opportunity to rate people correctly without having to handle the question of why the employee has dropped two levels since last year.

I would use a numerical scale, running from 0 to 25, with five different categories overlaid across the numerical scale. If you will call me, I will go through the concept in more detail. I'm at 615-371-8200.

Margaret Morford
theHRedge