The remuneration system is one of many elements that directly affect the success of the company. Unfortunately, there is no universal efficient system applicable to all the specifics of various types of businesses and individuals. But there are principles which distinguish the better remuneration systems:
Principle 1. Top performance clear definition.
Principle 2. Remuneration should be directly linked to present objectives.
Principle 3. If an employee may get fired for poor performance, s/he must have the opportunity to get "rich" for top performance.
Principle 4. Extra remunerations.
The remuneration system must allow extra payments for merits. Some of the most neglected merits are the merits of training newcomers. If you have in your department employees who teach and train well, you must reward them as they actually build the company spirit. It is that men’s will - to give more of themselves than their duties require - that distinguishes the great companies from the ordinary ones.
Principle 5. Acknowledgement.
Use every bonus or salary increase to personally recognize the contribution of your top performers. Money cannot buy you loyalty! Loyalty is won by highly principled and fair treatment.
- 7 Steps to Success of Maddy Sharma
- The Business Leader and the Four Employee Types
- Test 11. Managerial Leadership Skills
- 10 Eternal Principles of the Business Leader
- How to be Better Business Leaders
- Startup Entrepreneurial Management in Practice.
- Leadership Skills (11ofX) - Paying Respect to Team Members
- The Business Leader and the Tertiary Education
- Leadership Skills (10ofX) - Approach Constructiveness
- The Business Leader and the Key Decision