Performance and reward are inseparable elements. BexerHamstra’s consultants can determine the right reward instruments for your organization.
The fact that performance and reward are inseparable may be demonstrated with a few examples:
Designing pay scales and determining salary rises is of critical importance for internal reward relations. For if it takes too long to reach the top of one’s salary scale, for example, this may be perceived as unfair and thus demotivate people.
Variable pay schemes such as bonuses and sales incentives tell employees which are the most important targets for their positions and departments. Provided that it is designed well variable pay may also have the effect of stimulating productivity.
Variable pay schemes that are coupled to organizational performance provide salary cost variability and generate a sense of solidarity within the organization. Such schemes may also be used to show the organization’s strategic priorities and values.