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Creating a Variable Pay Plan
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Creating a Variable Pay Plan
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Training History
Course Contents
Introduction
- page 1
Rise of Variable Pay
- page 2
Do Variable Pay Plans Work?
- page 3
Which organizations should use variable pay?
- page 4
Is Your Organization Ready for a Variable Pay Plan?
- page 5
Which Employees Should Participate in Incentive Plans?
- page 6
The Performance Connection
- page 6
Short-Term Incentive Plans
- page 7
Individual Performance-based Incentive Plans
- page 7
Piecework
- page 7
Standard Hour
- page 8
Measured Day Work
- page 8
Discretionary Bonuses
- page 8
Output and Time
- page 9
Team or Small Group Incentive Plans
- page 10
Gainsharing
- page 10
Deferred Plans
- page 10
Profit Sharing
- page 11
Difference Between Profit Sharing Plans
- page 12
Large Group Incentive Plans
- page 13
Other Plan Design Considerations
- page 14
Overall Strategy
- page 15
Organizational Readiness
- page 15
Compensation Competitiveness to the Labor Market
- page 15
Eligibility
- page 15
Plan Goals and Measurements
- page 15
Costs of Plan and Affordability
- page 15
Performance-Reward Connection
- page 16
Business Risk vs. Reward
- page 16
Administrative Details
- page 16
System Support
- page 16
Legal Review
- page 17
Approval
- page 17
Ongoing Communication
- page 17
Payout Planning and Procedures
- page 17
Evaluation
- page 17
Interactive Exercise
- page 18
Your Turn
- page 19
Summary
- page 20