Link performance reviews to compensation

Complete the performance management loop by linking performance reviews to employee compensation. Pay-for-performance is the fair and equitable way to reward and retain the talent in your organization. And the only way to guarantee the integrity of your compensation plan is to link it to your employee performance management system, which provides you the tools you need to manage, monitor, and measure employee performance at every step in the process.

• Make it fair.  Rather than basing compensation on non-performance factors such as seniority, or rewarding all employees on a uniform basis, pay-per-performance compensation ensures that employees that perform well in your organization are rewarded in a manner that is fair across the organization.
• Identify, reward and retain. Being able to clearly identify top performers in your organization allows you to single out those individuals who are performing at a high level and reward them appropriately. Rewarding your high-performers is yet another way to retain the critical talent in your organization.
• Ensure consistency and standards.  Employees’ performance reviews should reflect their true performance and not be subjected to their manager’s way of rating.  By implementing a web-based performance appraisal system across your organization with workflows based on industry best-practices, your organization can ensure all employees are measured under the same process and criteria.