Monday, January 16, 2006

Pay For Performance

The pay for performance compensation structure is gaining strength. The Houston school board recently voted to pay a bonus to teachers based solely on student test scores.

Houston's Pay For Performance Plan

Pay for performance tells your employees and customers a lot about your business.

1. Your employees have the elusive ownership mentality.
2. Your employees sense discipline in your business.
3. Your employees know that you’re serious about customer satisfaction.
4. Your customers know that you’re serious about customer satisfaction.

You can call it marketing. You can even call it a blatant sales pitch. But, the reality is that it works. And its better than the alternative.

The alternative is plentiful. Give the alternative a call and ask them why their business is better than the business with the pay for performance plan. They’ll have to say a lot to convince you. Meanwhile, the pay for performance business doesn’t need to say a word.

It’s compensation plan does all the talking.

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