What’s the Best Compensation Plan to Offer Talent?
By Patrick Ropella Posted 02/13/2015
Does the compensation plan that I offer really make a difference in retaining top talent and increasing performance?
Yes, in an increasingly competitive market, corporations must provide an environment in which its employees can thrive. One way of doing this is by offering a compensation plan that works specifically for you and your staff. Here are four of the most popular rewards based plans used today:
- Skill-Based Pay: As employees gain mastery of essential job skills, their compensation is increased accordingly.
- Competency-Based Pay: Compensation is based on the extent to which employees display character skills such as leadership, observance of details, and multi-tasking.
- Variable Compensation: Employees receive a below-average base salary, but earn additional bonuses by meeting or exceeding set goals.
- Profit Sharing: Employees receive a base salary, and receive quarterly or annual profit sharing in the form of stock options, contributions to a 401K plan, or a bonus check.