Performance-Driven Culture
The value of a performance-driven culture is visible and clear: employees are engaged in the success of the organization, it’s a dynamic and productive environment, your highest performing employees thrive and lead innovation, the company strategy is well-defined and employees effectively contribute to positive outcomes – that and a good business model with a winning strategy can add up to profitability.
Creating this reality is influenced by many factors, such as encouraging individual ownership within a collaborative environment, valuing your employees and engaging them with clear and inspiring communications, aligning goals to business imperatives and giving employees opportunities to continuously develop their career paths and excel. These kind of talent and culture programs all contribute to a performance-driven culture. Adding a pay-for-performance model will further advance an environment that encourages high-value contributors.
Talent Costs
With talent costs representing a significant portion of any company budget and human capital spend as much as 50% of company costs, the strategic implications are profound. Compensation decisions are complex and it’s essential to maximize this spend.
Rewarding and compensating employees based on performance is not a contemporary idea, but many programs don’t truly motivate employees to perform at their best, nor do they work in retaining top talent. Having the ability to attract top talent externally is critical, particularly in competitive roles with a scarcity of candidates. How you respond is critical success, including growing your talent from within, recruiting the best and brightest, recognizing top performers and encouraging an environment that gives an opportunity to excel.
Latest Thinking
The winning trademark to building a pay-for-performance culture and maximizing your compensation spend is built on the premise that your talent strategy, in line with your business strategy, informs your compensation philosophy and rewards system.
Navigating this journey to drive measurable business outcomes begins with fully connecting your talent and compensation systems, enabling real differentiation based on performance.
