Pay-For-Performance Model

Challenge: A large heavily unionized organization wanted to move to a pay-for-performance model for their non-union staff. There was concern that moving to a pay-for-performance model could result in additional unionization and resistance to change.

Solution Deployed: We conducted a thorough assessment of the organization’s compensation practices and perceptions. Through a series of interviews, surveys and data analyses, the organizational culture and pay-for-performance temperament were reviewed. They found a distinct interest throughout the organization in moving to a pay-for-performance model, which supported some new lean and quality initiatives.

We then developed a comprehensive three-year implementation plan. The plan included:

• a streamlined and re-aligned base pay plan
• an internal assessment of every individual’s current pay rate compared to a new pay placement table and pay rates
• A new performance management program that was implemented over three years

Business Value Delivered: Our client successfully navigated a change in pay strategy successfully, employee engagement increased, and employees noted they appreciated being involved in the process.

Client Industry: Manufacturing

Project Type: Pay Structure Development, Pay-for-Performance, Change Management, Performance Management, Culture, Strategic Communication

Business Structure: For-Profit, Privately Held