Basic business practice dictates that organizational goals and objectives should “cascade” down through an organization, from the highest-level strategic goals to tactical goals at the division, department or team level, and then ultimately should be linked to employees. Establishing achievable goals at each level through careful research demonstrates an organization’s commitment to its high-level strategy.

But time and time again I hear that pay for performance (PFP) programs aren’t endorsed by upper management, [...]

I’ve been thinking more about what I said about employees understanding their pay for performance program. Winning over employees and gaining their support for the program is essential. One key is drawing a clear line between performance and potential reward. The program must detail exactly what is expected of the employees and how these expectations can be reached.

But the consequences of meeting, exceeding OR falling short of required performance levels must also be defined. [...]

As I’m doing my own professional goal-setting for 2007, I’ve been thinking…

Implementing an employee pay for performance (PFP) program seems like a no-brainer. But actually, they often end up failing and doing more harm than good to employee morale.

Why? Some common mistakes include:

• All employees essentially receive the same increase regardless of their achievements. This produces a sense of entitlement and undermines the whole purpose.
• Employees don’t have a clear understanding of the relationship between [...]