Normally when we hear about compensation, the article or review is about CEO compensation or other C-level positions, rarely do we hear about compensation programs for those who block and tackle. However, effective compensation systems must be designed to reward people in all levels of the organization. The importance of a fair and equitable compensation system cannot be over emphasized.
Effective execution requires that all employees, from every level of the organization agree to the objectives that are established and understand what is expected of them in quantitative terms. Once quantitative measurements have been established, each person's contribution, no matter how high or low they are in the organization structure, can be measured, recognized, and rewarded.
To meet the revenue goals, the gross profits standards, and remain at or below budget every person must do his or her job and deliver the results expected to standards that have been agreed upon so that an effective compensation system can then recognize and award everyone's contribution appropriately. Then when the CEO says the people on the loading dock (those who block and tackle) are just as important as those in the board room, his compensation strategies make his statements believable.
Those organizations that have learned to effectively measure and award performance at all levels of their organization typically have very high performance levels, very high morale, and very low turnover. |
