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thanks for this post - i liked!

i tend to see employees at the max + having to do lump sum increases/awards in mostly "para-profesional" and administrative roles. i tend to lean towards them being overpaid but in order to retain them, we've gone this route. whether they are underutilized... well, the thing is, i think it can be a bit harder to find ways to stretch and develop these folks, particularly when the individual is a career admin or a career para-pro in whatever their given field might bee... and the role can only be taken so far, if that makes sense. i don't know if i'm being terribly narrow in saying that though.

something interesting i've encountered recently though - with employees who are at the max and are receiving a lump sum increase/award... the communication that goes along with that and ensuring that they understand that their base pay remains unchanged - and that any future increases are based on the base salary. so, if you're capped out at 50K, and we give you a lump sum of 4K, your base is still 50K and future percentage increases would be based on that. we're not going to add your 50K and 4K and then give a percentage increase based off of 54K... it defeats the whole purpose of having a range.

yeah... had to have that conversation a few times believe it or not.

Your post underlies the importance of tying Training and Develop, Employee Relations and Compensation together, as specialties, when it comes to performance management.

I also love your frank, straightforward approach; "Want to earn more? ... then figure out how to bring more value to your (or any) employer." Well said.

Jessica:

Thanks for the thoughts. I agree - the decision to remain in a single role for your entire career is indeed an income-limiting decision, and needs to be understood as such. I do like the idea of the lump sum in these situation though, because it allows us to recognize and reward those who perform well in their role (including those who "keep the lights on", as covered in a previous post).

Totally:

I like your point - performance management, if done well, really can become the glue that ties T&D, ER & Compensation together. Thanks for the comment!

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About The Author

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    Compensation consultant Ann Bares is the Managing Partner of Altura Consulting Group. Ann has more than 20 years of experience consulting with organizations in the areas of compensation and performance management.

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