The goal of this system to get employees to the Target Wage relatively quickly and then keep them there. This is accomplished by giving higher raises to those below the Target Wage for the same level of performance as those above the Target Wage.
You will also, note that this works well when demotions occur. The employee will simply not get a raise until their Compa Ratio goes under 1.0.
So what do you think? Is this too cold and analytical? Or does it make sense?
G2A Perf & Comp 2
G2A Perf & Comp 1
G2A Perf & Comp 2
G2A Perf & Comp 1
3 comments:
This is typically what happens, whether formally charted or not, assuming the business is healthy enough to afford it.
What I think has changed forever though is dealing with sub-par performers. We're so much more interconnected and interdependent these days that the effects of poor performance are felt well outside a particular department.
In a soft market, a good boss owes it to his good employees to prune the deadwood. I've always found that the remaining are more than willing to step up to fill in and help train the new hire. That means that department functions effectively for the rest of the company.
Often I see Supervisor's tolerating/ignoring poor performance until the business climate becomes bleak. Then they use the economy to do what they should have done months or years before. Of course, pushing people out when things are bleak is actually more cruel than pushing them out when jobs are available.
The goal of the forced distribution performance rating system is to help Supervisor's overcome their aversion to proactively dealing with those messy personnel issues. They really have to evaluate their employees, lobby for the good/great with their peers and deal with the poor.
Without something to force discipline, people seem to procrasinate.
No, no, no, good management does not flow from the HR department. The CEO sets the tone and guidelines, but every level of management has to constantly be looking to exploit the great performers, motivate the steady performers, and replace the poor performers. That's what managers do.
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