Performance-Based Compensation is Alive and Thriving!

Performance-Based Compensation is Alive and Thriving!


December 2013
Performance-Based Compensation is Alive and Thriving!
 

SALE!!


For the month of December, the DBDescriptions job description writer is on sale!!

For December only, the annual subscription price will be $250, a savings of $45.

You can buy as many years and or as many subscriptions as you wish

For more info please go to the DBSquared web site or email for more information.   


 

New Release



We plan on releasing the latest version of DBCompensation, version 8, in December.

This version will include many new features

This upgrade will be automatic for our hosted customers.

For more info please go to the DBSquared web site or email for more information.  


 

Conference Plans


We currently are planning on attending two conferences in the near future:

Bruce Johanson will be at the AML Winter Conference at the John Q. Hammons campusin Rogers, AR on January 29th through the 31st.

Bruce Johanson will be at the AR SHRM State Conference In Fort Smith April 9th-11th.

For more info please go to the DBSquared web site or email for more information.  


Performance-Based Compensation is Alive and Thriving!



As we approach the end of 2013 and start our planning for 2014, our group thought it would be good to speak to the trends in Base Compensation going forward. Organizations are dealing with the rising cost of health care, the general increased cost of goods and services year over year and the expected increase in taxes to cover this country's government debt. These costs are causing organizations to review their largest expense which is employee pay. Management must determine how to keep their employee base motivated and, at the same time, ensure every cent paid is returning the desired results that keep the business going and growing.

We believe that organizations are starting to wake up and understand that positive performance results merit adjustments in pay and not just "butts in seats or foots on floors." With the average budgeted salary adjustment for 2014 expected to be around 3%, it doesn't make good sense to provide across the board increases to all employees. Given that employees are generally paid a market level pay or something more or less depending on the organization's compensation and benefits philosophy statement, increases in pay should only be given based on what the employee accomplished that truly made a bottom line difference for the company. Differentials in pay means that organizations need to have an effective performance appraisal program in place with proper training provided to all leadership that conduct the evaluations and a solid performance appraisal form. Each performance rating on the form needs written justification that should come from good notes made by the supervisor throughout the year where the employee performed above or below the expectations for that year. The HR department should return forms that are not fully completed or where the supervisor just quickly marked the employee's performance levels and no thought or effort was taken.

In the most recent Northwest Arkansas Human Resources Association and Arkansas Compensation Association salary and benefits surveys, the number of organizations providing cost of living adjustments to their employees dropped to almost zero. We believe that organizations should pay its employees based on the each position's internal value to the organization, the market value of the positions and the performance, and the experience and education that each employee brings and utilizes at their respective organizations.

Companies need cash flow to operate and reinvest for growth and can't afford to pay its employees based on attendance. Performance-based compensation backed up with an effective performance management program should create the proper motivation to drive the development of the employees to higher performance levels and generate the necessary ROI/ROE to sustain the organization year over year.

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FREE DEMO 
Contact us to schedule an online demo that will allow you to see the DBCompensation application.  We would be happy to answer any questions that you may have and to tell you more about our Total Solution.  
 
Please contact Blair or Bruce Johanson to schedule an online demo for you and your team.