From the category archives:

Economy

Keep the Hot Ones

February 15, 2010 · 0 comments by Larry Comp

in Benefits, Business Strategies, Compensation, Economy, Employee Communication, Management, Organizational Growth, Uncategorized

Whether you see it or not, your organization may be in danger of losing some of its top performers.

So Brandon has been with you six years and his performance ranks among the best. Because of this, you have been able to offer Brandon above average annual salary increases. He also likes working for you. toptalent

However, when the thriving competition down the block offers Brandon a significant salary increase, coupled with an attractive bonus – he’s leaving you.

More and more top performers are realizing that, to “get ahead,” they may have to leave their current employer.

We know salary increase budgets are not what they used to be. Experts predict 2010 salary budgets to be in the 2-3% range.

But can you afford to lose the “hot” ones? It’s time to identify those people that you can’t live without and give them a good enough – scratch that – a WORTHWHILE reason to stay.

Here are some suggestions:

1. Identify your top performers and let them know how much their efforts are appreciated. Also consider if any of their salaries are in need of adjustment

2. Consider offering “spot” awards, as appropriate, for superior individual contributions

money_manffcd 3. Identify those employees who possess critical skills you cannot live without. Consider the prudent use of a “Stay” bonus where such an incentive may be warranted.

4. Consider including your key long-term strategic players in a Long-Term Incentive Plan (LTIP). Incorporate a vesting schedule as an incentive to stick around long-term.

Don’t wait until it’s too late to ask why your top employees want to jump ship.

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To Leave or Not to Leave? That is the question.

February 2, 2010 · 0 comments by Terry Lauter Comp

in Business Basics Training, Business Strategies, Compensation, Economy, Employee Communication, Feedback, Leadership, Management, Organizational Growth, Performance Development, Performance Management, Supervisory/Leadership Training

We all want a purpose in life, don’t we?

Who wants to sit at a desk every morning, not knowing why he or she bothers going to work every day?

Sadly, it’s a mentality that is plaguing more and more high-performers whose development aspirations went out the window with their company’s profit.

According to a survey conducted by i4cp, 76% of respondents said performance management is very important this year, but a meager 23% said their companies are very effective at actually doing it. (http://www.i4cp.com/productivity-blog/2010/01/28/20-years-and-counting-leadership-development-once-again-the-most-critical-issue-facing-organizations-in-2010)

“Finding and developing the right leaders has been considered a top challenge for companies for decades,” said Jay Jamrog, SVP of Research at i4cp, in the report cited above. “Given the volatility of the last year and the accelerated pace of change in the economy, companies should be treating leadership and development as both an urgent survival tactic and a business opportunity.”

“The companies that get it right – and several high-performing companies are doing it right already – have potential for great success.”

Another recent survey by Deloitte, found 65% of surveyed executives are highly to very highly concerned about losing high-potential talent in the year after the recession ends.

Are you one of these execs worrying your high-performers might ditch you as soon as the opportunity presents itself?

The important question is: what are you ACTUALLY doing about it?

If you’re stuck, the following are a few key recommendations for getting you started.

1. Identify your high performers, and help them assess their strengths and development needs. Then work in partnership with them to create an Individual Development Plan, and support them in executing the plan. communication

2. Open the lines of feedback and communication to discuss corporate and personal development goals with your high performers. If you’ve already done so in the past, maybe it’s time for an update. Make sure your superstars know how their personal goals and dreams may be in alignment with the organization’s goals and plans for the future.

3. Link compensation more directly to organizational and individual performance. Wherever possible, use self-funded incentive plans to create meaningful rewards and distinctions between superior and standard performance.

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Time for a Compensation Check-up?

October 30, 2009

How can you tell if your Compensation Program is working?
The first clue is whether or not the organization is meeting its short and long-term financial goals. Even in these tough economic times, financial performance provides some good clues.
If not, SYMPTOMS might include:
1.    Difficultly attracting/retaining your TOP performers, while less productive ones “stay put.”
2.    Lack of focus from employees [...]

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Bad times can make you bitter or better

July 23, 2009

I have long been a fan of the “Wizard of Westwood”, Coach John Wooden. The legendary UCLA basketball coach’s phenomenal achievements in basketball probably pale in comparison to his contributions as a teacher and developer of young mens’ character. Wooden still to this day uses maxims or “Woodenisms” to teach important principles of life. One seems [...]

In a Recession: Recognize & Retain Your Star Performers, Part V

July 13, 2009

By now, it’s a foregone conclusion: Top performers should not be taken for granted or lumped into the mix, and then rewarded like the many “average” performers each organization has on the payroll roster. This truism applies even for continuing or enhancing cash compensation components, when many businesses have limited financial resources.
Therefore, savvy leaders are focusing on [...]

In a Recession: Recognize & Retain Your Star Performers, Part IV

July 10, 2009

Research tells us consistently that top performers outperform average team members by a ratio of at least 3 or 4 to one. If you take a moment to do the math, the implications are simply staggering. How could a prudent leader allow his or her super stars to languish among the troops at a time [...]

In a Recession: Recognize & Retain Your Star Performers, Part III

July 8, 2009

As the economy continues to slowly churn, many organizations have made their cuts, and are now turning their attention to the survivors. While these folks may be glad to have a job, some of the star performers may be waiting for the turn-around to make their get-away. If they haven’t been recognized for their extra [...]

In a Recession: Recognize & Retain Your Star Performers, Part II

July 6, 2009

Last post, we discussed the fact that “pay for performance” or “rewards for results” is still a myth in many segments of corporate America today. While most companies have a vital few who are achieving most of the goals, we are realistically not recognizing and rewarding these individuals in a way that will ensure their [...]

In a Recession: Recognize & Retain Your Star Performers, Part I

July 1, 2009

Most every organization has a group (made up of about 20% of the total population) who delivers 80% of the results. In other words, a few folks make a tremendous difference for the overall success of most every business. But here’s the rub: all too often there is no significant difference in the way we [...]

“Getting Real” in Today’s Economy

June 24, 2009

We’ve all seen the headlines, and heard the very real reports of salary freezes, forced time-off, and 401(k) matching “vacations”, not to mention lay-offs and closures. Clearly, many companies and their employees have been significantly impacted by this current recession. While we are beginning to see light at the end of the tunnel, experts say [...]

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Economy

Keep the Hot Ones

To Leave or Not to Leave? That is the question.

Time for a Compensation Check-up?

Bad times can make you bitter or better

In a Recession: Recognize & Retain Your Star Performers, Part V

In a Recession: Recognize & Retain Your Star Performers, Part IV

In a Recession: Recognize & Retain Your Star Performers, Part III

In a Recession: Recognize & Retain Your Star Performers, Part II

In a Recession: Recognize & Retain Your Star Performers, Part I

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