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ILR School

Evaluating Performance-Based Compensation Programs: Tools and Techniques (ICS402)

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Using compensation strategies that directly link pay and performance lead to greater efficiency in utilizing compensation budgets. But these gains only come if the performance-pay strategy is effective. A thorough evaluation of performance-based pay systems requires the use of multiple lenses: financial, human capital, and market-based perspectives.

Key Topics

  • Delineating the types of data and information necessary for thoroughly evaluating a pay for performance system
  • Reconciling the financial commitment required for performance-based pay with the organization’s financial resources and payment abilities
  • Assessing the efficacy of performance-based pay systems as part of the organization’s overall talent and business strategy
  • Measuring the relationship between pay for performance, changes in productivity and the bottom line of the organization
  • Examining the frequency, quantity and quality of feedback provided to employees
  • Quantifying the overall return to the organization of a performance-based pay system

Who should attend

Participants will leave the course with the ability to analyze and evaluate the efficacy of performance-based pay systems. Organizations will benefit through improved allocation of financial and human capital resources and an enriched understanding of the effects of pay for performance on the success of their operations.

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