Employees must continue to add value, and the organization must acknowledge their value with rewards. Extend peoples' line of sight. Employees should get information so they can see how they influence the organization's results. Reward individuals' ongoing value with base pay. This requires using base pay to reward individuals for the skills and competencies needed by the organization and used to generate results.
Reward results with variable pay.
Dr. Schuster recommends using variable pay programs, such as recognition or group incentive programs, to reward results because they are agile, flexible, adaptable, responsive, and able to focus on key measures of success. The Duality of the Compensation Contract. Maggi Coil discussed the duality of the compensation contract what companies are offering employees, and what employees are seeking from their employers. Both speakers shared invaluable information regarding a variety of reward principles that tie into the total compensation philosophy. These reward principles help to create a work environment that sets the stage for employees to add value to the organization.