Only 31% of non-managers believe that their organization pays top performers the best, as opposed to nearly half (48%) of managers.
These findings come from a recent survey conducted by the Hudson Employment Index, Transforming Pay Plans: 2006 Compensation and Benefits Report. The survey, based on the responses of 10,000 workers, examines employee attitudes about compensation and benefits programs.
Hudson sources suggest - and I agree - that the difference between these perspectives could be a function of less-than-optimal communication of compensation programs.
“Performance-based incentives are ineffective if employees do not realize there are rewards for achieving their objectives, no matter their position,” stated Robert Morgan, COO, Hudson Talent Management. “By clearly communicating these rewards, companies not only entice their work force to meet strategic goals, but top performers are also likely to stay longer.”
Managers, who often benefit from more training and information on the intent and operation of a compensation program, may understand how the pay to performance link is supposed to work. The fact that employees are drawing different conclusions about compensation may be the result of having received less information. In the absence of clear, regular communication about the purpose and mechanics of a compensation program, workers will be left to draw their own conclusions.
In my experience, effective communication is often the distinguishing element between pay programs that produce and pay programs that don't. For a summary of the Hudson Employment Index study, click the following link Transforming Pay Plans.
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