Redesign Pay Programs

Written by Patricia Skinner
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Sometimes, in order to introduce higher levels of business efficiency, it becomes necessary to redesign pay programs. In order to design a pay program that serves your company and your employees best, it may also be necessary to conduct a performance assessment for employees. This will probably be unpopular with employees at first, but when you take pains to explain that this assessment is part of the process to improve the reward-for-effort system, you may find that attitudes improve. It is important that employees view the process in as positive a light as possible.

Methods to Redesign Programs

Although you may be dreading the possibility of raising pay scales, you may find that, in fact, you can redesign pay programs to make them a great deal more attractive to employees without raising your present monthly. By introducing delayed, or long term pay strategies you can often make the deal a lot more enticing to key employees, while also improving your tax situation too.

Your human resources department can play a key part in helping you to redesign pay programs that will result in great productivity and a happier workforce. First it is often necessary to identify key workers and assess their contribution. Arriving at a pay plan that recognizes excellence and rewards effort is just one strategy for getting more value for money where your pay program is concerned.

When you redesign pay programs to include an attractive total compensation plan with such features as reward for extra effort and excellence, delayed payment programs or retirement plans, some kind of share options plan and so on will be guaranteed to reflect your company in a different light. You will probably find that problems with employee retention will fade away when such a comprehensive reward plan is in place. More and more employees are looking to the future when considering job possibilities and rewards.

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