Link Pay to Performance in Down Market
Filed in: Total Rewards
Link Pay to Performance in Down MarketA major manufacturer of commercial building systems faced tight budget constraints because of a downturn in the construction business. The company was particularly concerned about losing key employees due to a limited salary budget.
Design Pay for Performance Plan to Meet Company ObjectivesAfter conducting a market analysis of the company’s current pay program, The Chatfield Group developed a conservative pay structure covering multiple locations.
To gain maximum leverage from scarce salary dollars and retain high-potential employees, we designed a pay-for-performance matrix and guidelines that optimize rewards for high performers while limiting pay increases for others. In addition, we reviewed performance levels to ensure that the new pay structure could be implemented within budget.