Pay for Performance that Works – Lessons from Pro Sports

Of the two colleagues who have the same role, one has five years of experience, but the other's salary is ten times salary. There are two middle managers. One has 3 years of experience and one has a role of 8 to 10 years. How can it end with your organization Oppositely, complicating competitors' problems is that more life managers do more than just the main role. amazing? If two organizations are two professional soccer teams and employees are quarterback, that is not the case.

Believe it or not, this is very common in professional sports and is widely accepted. Look at these examples.

Quarterback of Tampa Bay Buccaneers Mike Grennon is 25 years old and has 2 years experience This year's salary is 846,563 dollars. They also hired another quarterback, 21-year-old Jameis Winson. He just graduated from university (inexperienced), earning 4,609,323 dollars. Over 400% of newly hired employees without experience? !!!

The experience of Matt Hasselbeck of Indianapolis Colts in the 1940s is 16 years, 70% less than the other quarterbacks, but only Andrew Luck. 3 years experience

Is not it a fan of football? How is baseball? The New York Yankees has five start pitchers. One pitcher has only earned 22 million dollars in a year and another newly signed pitcher has earned $ 533,000. The other three pitchers have experience of 3 years, 3 years, 4 years and have invested 3.3 million dollars from 2.1 million dollars.

Paying for performance rather than experience is a way for professional sports organizations to succeed. This is also the way they recruit. The Yankees recruits high performance / high potential and pays more to get them. This expression is valid. They always have the best salary of baseball, but their success rate does not match any other organization.

But will this work in your organization? The chief HR director and HR leader began thinking so. Laszlow Bock, senior vice president of Google Employee Operations, explained their "unfair payment" strategy with his "Work Rules". Organizations, boards of directors, even medical patients are attracting attention. Officer remuneration is usually linked to income and stock price. Health care is focused on patient outcomes

The first step as a leader in human resources is to make sure that your performance management system (including goals and results) is linked to compensation, incentives, and rewards. Please download the white paper "Pay for your performance strategy" for performance talent management strategy and solution details.

Advantages and disadvantages of linking remuneration and performance. Some experts say that it is not advisable to combine pay and performance. Also, remuneration should not be used to motivate employees to improve performance, as compensation will not focus on how to improve work quality and performance and pay attention to money. What is a pay raise? Others believe that performance fees may lead to competition among employees in the competition for the highest pay raise. Therefore, some companies offer the same full raise to all employees. It eliminates competition and ensures that all employees are working towards the same goal. However, even if everyone receives the same pay raise, there is no incentive beyond expectation and we can not make extra effort to work. Only you can decide the best way for your employees

Paying for performance rather than experience is a way for professional sports organizations to succeed. This is also the way they recruit. The Yankees recruits high performance / high potential and pays more to get them. This expression is valid. They always have the best salary of baseball, but their success rate does not match any other organization. But will this work in your organization? The chief HR director and HR leader began thinking so. Laszlow Bock, senior vice president of Google Employee Operations, explained their "unfair payment" strategy with his "Work Rules". Organizations, boards of directors, even medical patients are attracting attention. Officer remuneration is usually linked to income and stock price. Health care is focused on patient outcomes