Let’s face it - hourly pay doesn’t guarantee productivity. Let me explain... Your team might show up, but if they’re not working toward clear outcomes, you’ll never see the full return on your wage investment. It's a more simple fix than you might think: - Shift the focus from hours to outcomes with a Performance Framework. - Create clear goals and metrics. - Allow your team to self-assess, reducing the need for micromanagement. Want better performance from your staff? Give your team ownership of the results.
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Why Hourly Pay Stifles Innovation: The Case for Outcome-Based Compensation Hourly pay is ideal for repetitive tasks in industries like manufacturing, retail, and services, where work is measured by time spent and efficiency. It ensures fair compensation for standardized outputs. However, creative or outcome-driven roles, such as design, consulting, or entrepreneurship, often demand pay structures reflecting value rather than time. Options include project-based pay, profit-sharing, royalties, or equity stakes, which reward innovation and exponential impact. These models incentivize results, scalability, and ownership of success. Unlike hourly wages, they align effort with outcomes, fostering growth and motivation. Tailoring pay structures to work type ensures fairness and maximizes potential for both employees and businesses.
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Compensation analysis is more than just studying and adjusting pay rates. It paves the way to attracting jobseekers, boosting your employees’ performance, and preserving your top talents. This practice helps keep you at the top of competitive industries and job markets. Here is a step by step guide in analyzing your compensation and benefits for your team and create structured salary brackets that your HR team can refer to: https://lnkd.in/gWDm_rje
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Further increases to the National Living Wage and the Real Living Wage will create further pressure on pay frameworks, particularly in maintaining differentials between managers and their teams whilst also managing costs. Key considerations can include: 1. Understanding what current pay differentials between managers and their team look like 2. Simplifying your pay structure to enable greater differentiation between levels / grades 3. Using job evaluation to quantify the size difference between a role and it's direct reports to ensure pay differentials are aligned 4. Where can market data provide insight as to what pay differentials look like in the market 5. What the total reward package looks like in terms of differentials, not just base pay To discuss these points further, feel free to get in touch.
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Is Your Compensation Strategy Ready for 2025? As we close out 2024, it’s time to ensure your compensation packages are aligned with market trends. Competitive and equitable pay isn’t just about staying relevant—it’s essential for attracting and retaining top talent. According to the US Department of Labor, wages and salaries for civilian workers grew by 3.9% over the past year, compared to 4.6% the year before. Are your pay structures keeping pace with this trend? Now is the perfect time to: ✅ Revisit your salary bands. ✅ Address pay gaps. ✅ Plan for competitive offers in 2025. 📩 Let’s connect! If you’re interested in conducting a wage analysis or benchmarking your market competitiveness, reach out to me—I’d love to help!
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Salary and Hourly Pay: The Impact on Your Finances. This article explores the key differences. Salary: Stability with a Trade-Off When you earn a salary, you are paid a fixed income regularly, which gives you financial stability. However, this stability may come at a cost: You may need to work longer hours and make additional compromises that blur the distinction between work and personal time. The value of a sense of stability is undeniable, but it requires a commitment to responsibilities and goals, even if it means working longer hours without reward. Hourly Pay: Flexibility with Potential Risks Opting for hourly pay means being compensated for every hour worked, with overtime pay for exceeding 40 hours. This arrangement allows for a better work-life balance, as you're paid for the time you invest. However, hourly work can make you vulnerable to changes in regulations, potentially affecting your income and benefits. Actionable Tips: If you are paid a salary, set boundaries to maintain work-life balance, and negotiate terms that align with your well-being. Hourly wage: Use flexibility to focus on personal pursuits and be mindful of potential vulnerabilities tied to external changes. Benefits Check: Understand the benefits associated with each compensation type, from healthcare coverage to vacation policies. Financial Security: Whether on salary or hourly pay, work toward financial security by budgeting wisely and considering savings and investment opportunities. Make informed decisions that align with your lifestyle and long-term goals. The choice between salary and hourly pay isn't just about income; it's about crafting a financial journey that suits your personal goals. https://rpb.li/Cohb #SalaryVSHourly Pay#FinancialStability#FixedIncome#FinancialFreedom#HourlyPay #Wages#WorkLifeBalance
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Want to understand the secrets of effective pay programs? Take just 15 minutes to complete our Pay Effectiveness and Design Survey and receive a free report revealing top compensation strategies, governance and pay program designs. We'll delve into compensation philosophy, base salary structure design, and more. Submit here: https://ow.ly/yIY430sCecn #CompensationStrategy #salary
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💡 Ever heard of "pay compression"?🚀 In simple terms, pay compression happens when the salary difference between employees is minimal, despite differences in skills, experience, or seniority. Imagine a seasoned pro earning almost the same as a newbie—frustrating, right? 😬 This can happen due to rapid market pay increases, minimum wage hikes, or even pay freezes. It can lead to morale issues and high turnover if not addressed. Some ways to tackle pay compression: 🔍 Regular pay audits 💪 Merit-based pay increases 🛠 Adjusting pay structures 🗣 Transparent communication Keeping our teams motivated and valued is key to success! Let’s keep the conversation going and share some tips on how you're handling this in your organization. 💬
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2024 has brought significant changes to the job market and the pay expectations of employees and employers. Join us as we explore how these changes will affect the job landscape in 2025, in our latest webinar - 2025 UK Pay Planning Trends 📈
'Tis the season for 2025 pay planning, and the new NI and National Living Wage rates haven't made it any easier! We're here to help! Join David Whitfield and Victoria Milford for a webinar on the 12th December to discuss the results of our annual Pay Planning Survey, and discover what your industry peers are planning for the year ahead. We'll be covering: 🧲 Compensation tactics for attracting and retaining talent 📈 National Living Wage compliance – How your peers are balancing upcoming wage hikes with employee engagement and cost management 🎁 Future-proofing pay packages – What’s driving competitiveness in 2025? Get ahead of 2025! Secure your spot with the link in the comments. 👇
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How to Balance Pay Compression with Pay Equity The process of remediating a pay #compression issue can seem complex, but with the right tools and expertise, you can effectively manage #compensation at your organization. Salary.com’s compensation consultants work with you to identify the extent of the compression problem and develop recommendations to reduce salary compression both now and in the future. To get started, check out this short #webinar to learn more about balancing pay compression with #payequity.
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We're two weeks into participation and our annual Salary Budget Survey is well on it's way! HR leaders and compensation professionals are diving in to ensure their organizations have the latest research on how companies will be managing pay increases in the year to come. Participate today to receive early access to the report including cuts by industry, employee count, company revenue, and more. Take the survey here https://bit.ly/3UqLliJ
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