Putting a price on performance

Article Abstract:

The Peoples Natural Gas Co (PNG) is improving the earning potential and performance of its employees through its pay-for-performance program. PNG implemented the program after realizing that both employees and managers perceived that there was a weak link between pay and performance. The utility hired a management consultant to help reach the goals of clarifying job expectations, providing employees with communication and feedback, and providing employees with recognition and rewards. The changes that PNG made in its policies included focusing the performance appraisal process on performance management, providing training to improve skills in planning performance, and allowing employees to become involved in the performance management process. An employee survey has revealed that 84% to 95% of the employees are satisfied with the entire performance management process.

Gas Production and Distribution, Case studies, Gas industry, Peoples Natural Gas Co. (Pittsburgh, Pennsylvania)

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An incentive to pay success story

Article Abstract:

Viking Freight Systems Inc successfully provides its employees with a customized reward and incentive program through the Viking Performance Earnings Plan (VPEP). The program groups employees according to their distinct functions and objectives. Each group has its own VPEP in which superior performance is gauged based on four measurable criteria: revenue attainment, percent of performance, on-time service and claims ratio. Under the VPEP, employees displaying exceptional performance are handed checks for a four-week period during voluntary employee meetings. These checks are issued separate from the regular pay to show employees the products of their efforts. Viking also provides two other programs to supplement the VPEP through the generation of suggestions for productivity-enhancement from employees. These are the Direct Line program and the Terminal Focus Groups.

Freight transportation arrangement, Trucking, except local, Human resource management, Freight forwarders, FedEx Freight West

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Flex-base addresses pay problems

Article Abstract:

Armco's flex-base compensation program is based on the fundamental principles of the pay-for-performance system. Employees are evaluated every six months in terms of their individual performance and management's attainment of results goals. A five-point rating scale is used to appraise individual performance, with one representing inadequate work and five standing for outstanding work. Outstanding employees are promptly rewarded with considerable increases in performance supplements and annual incentives. The flex-base program was designed in a way that employees would immediately feel the effects of performance decline. A comparison between Armco's flex-base program and the classic merit program is made.

Blast furnaces and steel mills, Oil and gas field machinery, Analysis, Evaluation, Employee incentives, Employee performance appraisals, Performance appraisals, Armco Inc.

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