Compensation & Rewards

As a good manager, you already know that competing for top talent on price alone (through compensation and benefits) is a no-win proposition. However, there are ways to strategically manage compensation and benefits that are consistent with strategic employee management. Following are a few tips:

  • The amount of pay dispersion across organizational levels, matters. Wide gaps between an organization’s lowest paid and highest paid employees can act as strong demotivators.
  • Determination and administration of pay raises can affect employee morale and motivation.
  • Type of compensation also has an effect on employee attitudes. Beyond pay raises and cash bonuses, alternative pay arrangements such as stock options and the strategic use of benefits such as insurance and retirement plans can have a positive effect on employee motivation.
  • Fairness and equity in pay are significant in managing employee motivation and commitment.
  • The vesting schedules for compensation and benefits can be linked to tenure requirements to have a positive effect on employee retention and long term motivation.

I use my training and experience as a Yellow, Green and Black Belt in Six Sigma to Define, Measure, and Analyze your organization’s current recruitment and selection processes; and within just one week, offer Improvements and Controls for your future recruitment and selection processes.

Contact me via linkedin for more information.

© 2013, Dr. Phil Bryant

  Dr. Bryant is an Assistant Professor of Management at Columbus State University and co-author of Managing Employee Turnover.



Filed under Consulting Corner

2 responses to “Compensation & Rewards

  1. Careful with that one, Neil. There’s actually a well established competing theory (called Tournament Theory) that calls for wide gaps between the TMT and other employees.

    Moderators (what I call “yeah, but’s”) are those specific organizational and strategic characteristics that make something that may be a great idea in one environment become a disaster in another environment.

    For example,
    “It has been shown that training may increase employee turnover.”
    “Yeah, but if you provide organizationally specific training and promised promotions to go with it, training can be a great retention tool.”

  2. Neil Swartz

    I forwarded this to the owners of BHT dba Doublebee’s.

    Your statement better explains why extreme gaps between clerks and managers is not a great idea. Still working on setting a conference call.

    Best regards,


    Sent from my iPhone

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