Seven Dimensions of Success Reward Plans
Companies that achieve lasting competitive advantage will be those that succeed in aligning the goals, behaviors, and skills of their employees with their business strategy. The strategic use of pay and incentives accomplishes this goal by reinforcing corporate culture, setting the tone and focus of...
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| Published in | Compensation and benefits review Vol. 30; no. 4; pp. 71 - 77 |
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| Main Authors | , |
| Format | Journal Article |
| Language | English |
| Published |
Thousand Oaks, CA
SAGE Publications
01.07.1998
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| Online Access | Get full text |
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| Summary: | Companies that achieve lasting competitive advantage will be those that succeed in aligning the goals, behaviors, and skills of their employees with their business strategy. The strategic use of pay and incentives accomplishes this goal by reinforcing corporate culture, setting the tone and focus of a change process, and supporting and improving upon company objectives. Seven methods in particular help facilitate the alignment of people and strategy: pay for performance, linkage to other organizational change levers, measurable competencies, incentives matched to corporate culture, clear and simple group incentives, widespread communication, and recognition for the work itself. Using these methods, companies can increase the return on their investment in human capital, foster employee loyalty, and reap substantial benefits for shareholders. |
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| ISSN: | 0886-3687 1552-3837 |
| DOI: | 10.1177/088636879803000409 |