Does lump-sum pay merit attention?
Article Abstract:
An innovative salary practice is the lump-sum merit increase given to an employee in one payment, without a corresponding increase in base salary. The advantages of this practice are financial cost control and enhanced employee recognition of pay-for-performance. The design of these programs varies, but the following elements are common: eligibility, performance criteria, calculation method, effect on base salary, and timing of payment. Administration and change to a lump-sum merit program is complex. Management commitment must therefore be sustained during the development and implementation of an employee communication strategy. The communication strategy includes oral and written presentations to all employees, personal review of each employee's salary package, and employee feedback after the first year of practice.
Publication Name: Personnel Journal
Subject: Human resources and labor relations
ISSN: 0031-5745
Year: 1988
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Performance-based reward systems: toward a common-fate environment
Article Abstract:
Performance-based reward systems can complement efforts to evolve a common-fate environment of organizational teamwork and trust. An effective reward system does not originate from cookbook methods, but is based on the unique profile of an organization. Two-way information sharing and employee involvement are essential. Management should provide information about the business and about individual performance to employees and be willing to listen to employee feedback. New performance measurements must be developed and tested before implementing a reward system. Employee involvement at all levels in long-term programs, such as quality improvement and cost reduction measures, improves the environment and increases productivity.
Publication Name: Personnel Journal
Subject: Human resources and labor relations
ISSN: 0031-5745
Year: 1988
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Red-circle employees: a wage scale dilemma
Article Abstract:
"Red-circle employees" are workers who have progressed beyond their pay-grade or are above the maximum permissible salary levels. The red-circle situation presents a no-win situation: the company is paying more for a job than the job is worth, and the red-circle job incumbents (often the most dedicated and valuable members of the company) find their wages frozen. Four approaches to handling red-circle employees are continuing to give wage increases, giving no increase beyond the grade maximum, giving limited increases beyond the grade maximum, and deciding raises on a per-case basis. The most satisfactory solution is to have a no increase beyond grade maximum, coupled with a strong career development program.
Publication Name: Personnel Journal
Subject: Human resources and labor relations
ISSN: 0031-5745
Year: 1987
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