Do you currently have a pay-for-performance culture? You may say, “Yeah, sure I believe we compensate our employees fairly”. However, only 21% of employees feel they are paid fairly, compared to 43% of employers, leaving a 22% gap.
Compensation is an exchange of value, not just money. If your employees feel underpaid or undervalued they will look for a new job. The question is, do you know the worth of your organization’s greatest asset, your employees?
In my case, my manager knows my strengths. She takes the time to evaluate my performance and behaviors not only during my performance review but also through one on one conversations, each week. This helps keep us aligned on my goals and development, plus I feel valued when she takes the time to be intentional with me.
Continuous feedback is critical. This is why we created our Check-In feature. Check-ins allow employees to answer timely and specific questions regarding their progress, needs, and morale. Managers can quickly review and respond, ensuring alignment and proper focus is maintained.
Another way to gather continuous feedback is through the use of 360-degree feedback. Our clients love this feature because it not only allows them to gather feedback internally but also, externally, from vendors or clients of their own. Now a more holistic view of your employee’s strengths and weaknesses emerge, allowing you to coach them more specifically and objectively.
When employees have specific, measurable, attainable, relevant, and timely (SMART) performance objectives paired with well-defined core values, pay can then easily be attributed to healthy, high performers. Remember, reliable data is important, so how does your pay compare to the market? Your strongest contributors (stars) should receive the highest pay. An easy way to determine this is with the use of our performance-values matrix.
Employee engagement and fair compensation not only affects workplace satisfaction but also company performance. Organizations with highly engaged employees are 200% more productive than the average organization in the US¹. A true pay-for-performance culture can help you achieve the results you want for your business by creating a great workplace.
¹Gallup’s 2017 State of the Workplace.