Posts by: Harry Shimp

Variable Compensation-What Works and Why – Part II

Variable Compensation-What Works and Why – Part II
Part II – Incentive Based Compensation Incentive programs are one of the few business strategies in which cost can be based on actual performance and paid out after the desired results have been realized.  The right incentive program can motivate ordinary people to do extraordinary things and help reduce turnover, boost morale and loyalty, improve employee wellness, and increase retention. The… read more →

Variable Compensation-What Works and Why – Part I

Variable Compensation-What Works and Why – Part I
Before we start on “what to do”, let’s talk about “why we do it”.  Variable compensation can be used for any combination of the following reasons: Align employee financial return with company financial performance; Encourage specific patterns of behavior among employees; Share the “fixed cost risk” of compensation between employee and employer. For the purposes of a blog, let’s separate variable… read more →