After 20+ years in compensation consulting, I've seen nearly every kind of pay program imaginable. I've had the privilege of creating some highly innovative ones, and I've also seen a lot of really bad ones -- some of them, regrettably were mine. It took a long time watching and studying the results of different approaches to determine what works and what doesn't. The purpose of this blog is to save you the time and trouble of making common mistakes. It is also intended to be a place where people interested in the topics of compensation, rewards, motivation and performance can meet to discuss what makes up "The Perfect Pay Plan."
It has always concerned me that there are so many different ways to skin the compensation cat. Either there are countless ways to achieve excellent results and every company has found the way that works best for them, or there are a lot of really bad pay programs out there that need changing. Unfortunately, I lean toward the latter interpretation.
Is there such a thing as the Perfect Pay Plan? I want to think so. Is it only one program? Maybe, maybe not. But how will we ever know unless we start looking? Einstein spent his life searching for a grand theory unifying all of physics. He knew if he found it it would transform the world. My quest may not be quite as lofty, but finding the Perfect Pay Plan might transform the world of work.
In this blog, I plan to comment on what I see happening with pay in the news like crazy CEO salaries, discriminatory pay practices, bonehead approaches to pay, and the like. I will also celebrate new and innovative approaches (or even tired old approaches that still work well). With my clients' permission, I may even throw in a few worthwhile real-world examples.
I encourage you to drive the conversation with your comments and questions. I plan to jump start the debate on exactly what I think constitutes the Perfect Pay Plan with an overview in my next posting. Stay tuned!
