Compensation Essay

1202 words - 5 pages

Organizations recognize compensation as an important factor in employee satisfaction. Many companies are committed to providing compensation packages that are competitive and reward great performers for the results that they achieve. Today, organizations have moved away from the times where end of the year increases were automatically given, regardless of how good or bad one performs. We are operating in times where salary, bonuses, and other incentives are directly linked employee performance. While many associates may believe pay raises and other incentives are entitled, organizations are placing more emphasis on employee performance to determine if salary increases are deserved.
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The results are monitored and reviewed by management. After reviewing the results, management has the ability to reward deserving associates for their hard work and dedication. Increasing knowledge or skills, working on special projects, increased productivity, performing job duties at a high quality level, and acting as a mentor to new and existing employees are some ways that can assist in increasing ones salary.
It is crucial that both management and employees keep record of their contributions and accomplishments made to the organization. This information is important for the annual review period. Using annual performance reviews to determine pay raises helps because associates will be aware of what was expected of them, how their performance was be analyzed, and how they will be rewarded for their efforts.
There are specific areas that individuals will be rated on: quality and quantity of work, communication, personal relations and teamwork, and dependability, to name a few. Depending on the employee’s final rating, a raise may or may not be given. An overall performance rating of 2 (mixed results), 3 (consistently successful), 4 (highly Successful), or 5 (among the best) are eligible to receive an increase in salary. Associates that receive an overall performance rating of 1 (unacceptable) are ineligible to receive an increase in pay. However, management can review their performance after six months to see if it has improved. If so, management can request an increase at that time.
Departmental Performance, or group performance, is another method Wellpoint Inc. uses to grant salary increases. As a group, essentially we are responsible for ensuring each employee in the department work towards a common goal, which is to achieve success for the organization. Group pay is used for a variety of reason. It encourages behaviors that will aid in achieving goals and objectives set for the department. This includes providing support for the team members, sharing information that becomes available, monitoring the performance of other associates and providing feedback to team members. These behaviors will assist in ensuring the department, each individual, and the organization is successful.
The measures that apply for individual performance are slightly different from the measures for group employees when determining increases in salaries. There are goals and objectives established for the department or group, and they are expected to be successful in meeting those objectives. Steps to devise a plan for effective team performance measurements should be in place and group priorities and expected results must be communicated. How well the team work together as a group, problem solving techniques, the number of cases completed, and the effectiveness of the teams work are all examples of measures that will be addressed. Management will review the final results and relay the information to the department.
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