HR Jetpack

Link to the Rewards Phase

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Lesson:

Link to the Rewards Phase

Lesson Content

In my time as the "Performance Management" lead, I learned that many organizations have some type of connection between the annual performance review and a monetary reward.

Also called "pay-for-performance" in which the employee receives an increase based on a rating from the annual performance review. Most of us know this as the "merit increase".

It is a form of direct compensation' which I'll cover in a completely separate course but let's review the basics. A "merit increase" is defined by businessdictionary.com as a "higher wage rate paid to an employee on the basis of an agreed upon criteria such as performance." When the increase is initiated, it'll appear as a percentage or a specific amount.

Pay-for-performance programs are a typical method to reward employees. However, if you don't follow the process and guidelines in this course, the validity of pay-for-performance could be questioned.

Plus more research has shown that people are not solely interested in earning a paycheck. This is why I spent part of a lecture on non-monetary recognition.

However, I don't think pay-for-performance is going away anytime soon. A 2014 poll conducted by the Society for Human Resource Management (SHRM) found, for the first time in 5 years, pay was the number one contributor to job satisfaction.

Although it may be unclear as to whether or not pay-for-performance is an absolute program for all organizations, we do know that one size doesn't fit all and the guidelines may vary by industry and company.

Christina Danforth

Instructor:

Christina Danforth

Christina A. Danforth, SHRM-SCP & SPHR, launched HR Jetpack in 2016 to support the development and professional growth of her fellow HR colleagues. She started her HR career in 2002....

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