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Aneeta Madhok, PhD, CMC
DeanCenter for Human Resources
S.P. Jain Center of Management
Email [email protected]
Harmonising Rewards &Motivation
www.hrsummitme.com
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Some Facts About Pay
DifferentialsAccording to Mercers survey: Highest-performing employees
(12 percent of the workforce) areexpected to receive base pay
raises of 5.7 percent in 2007. Average performers (52 percent
of the workforce) are expected toreceive base pay raises of 3.5percent in 2007.
Weakest performers (3 percentof the workforce) are expected toreceive base pay increases of1.7 percent in 2007 As cited in:
2008 Pay Projections: Increased Ties to PerformanceBy Stephen Miller, August 2007www.shrm.org
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Some Facts About
Incentives
Management
Professional
Officer/clerical
Highest
Rated 27% 20% 15%MiddleRated 20% 14% 11%
LowestRated 10% 7% 6%
As cited in:2008 Pay Projections: Increased Ties to PerformanceBy Stephen Miller, August 2007www.shrm.org
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Essentials of an Incentive
System Clear link between individual
goals and incentives
Methods of differentiatingperformance differentials
Final review by impartial arbiter
Grievance process to addressemployee concerns
Annual publication of ratings andpay decisions
Employee surveys to measuresatisfaction with the system
US General Accounting Office Guidelines
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Pay-for-performance
Doesnt Always Pay OffPay-for-performance may
have a natural life cyclethat managers are
unaware of Michael Beers, HBSProfessor
Pay-for-performance can
cast a pull over self-esteem, teamwork andcreativity
Teresa Amabile
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Back to Basics on
Motivation Extrinsic Motivation works in
the short run
Compensation (fixed, variable,long term & short term
incentives) Benefits
Intrinsic Motivation createsharmony for long term
through Challenge
Control
Cooperation
Recognition
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Total Rewards
Total Rewards goes beyond Pay for Performance Incentive Plans are only a part of the solution and
effective in the short term
Attracting, retaining andengaging talent throughproviding career andpersonal growth
opportunities is the key toharmony
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Natures Way
The story ofthe wise oldman
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Lessons from the Wise
Man It is important to
differentiate highperformers from averageand poor performers
Average performers arethose who meetexpectations and are
valuable. This messageis important
Poor performers need tobe brought in line through
Total Rewards strategy
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High Performers (A)
Maverick personalities
Driven by Achievement
Dont always go by the
rule book
Usually on the peripheryof the system
They make a quantumdifference
Drive high-performingorganisations
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Average Performers (B)
Valuable people who meetorganisational goals andexpectations
They are the backbone
They need to be recognisedand valued
Mentoring and coaching
inputs work well withaverage performers tomotivate and anchor in themainstream of theorganisation
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Poor Performers (C)
Message of developmentand improvement inperformance levels needsto be given
Need to invest inturnaround
Incentive plans help inbringing their
performance toacceptable levels
Need intensive andspecial performancecounselling
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In Totality
A total rewardsstrategy that workstakes into accountextrinsic and intrinsicmotivation
It is important todifferentiate High,Average and Poorperformers
Team performancemust be rewarded
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Creating Harmony
Total Rewards: All of thetools available to theemployer that may beused to attract, motivate
and retain employees.Total rewards includeeverything the employeeperceives to be of valueresulting from theemployment relationship.
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Contact at:Aneeta Madhok, PhD. CMC
DeanCenter for Human Resources
Block 5, Academic CityDubai, UAE
mailto:[email protected]:[email protected]
