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12/17/2009

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One of the most concise arguments for pay for performance that I've ever heard (and I've been preaching it for 20 years). The test you suggest is brilliant in its simplicity.

Joe - thanks for reading and for the supportive comment!

Darcy,

Thank you for the reminder that pay-for-performance doesn't end when the checks are cut. There needs to be a look-back to see if the system is working as intended.

Merry Christmas to you and yours!

Darcy -

Your comments are spot on. However, you have presumed that the measure of performance is well-managed, consistent and institutionalized in the organization. We all have heard of and/or experienced performance management systems which are ineffective and despised by staff and managers alike.

Our experience shows that identification of strong performers is really a simple exercise that does not require complex systems and voluminous forms. It comes down to answering just three questions:

1) Do you have good ideas?
2) Do you listen and adapt to others (e.g., colleagues, clients, customers)?
3) Can I count on you to deliver?

If you answer YES to these three questions, then you are probably amongst the best performers in your company.

Imagine, for a moment, meaningful pay differentiation supported by a simple and clear measure of performance that your entire organization would easily understand and support. Sounds, good, doesn't it?

Warren
http://internationalhr.wordpress.com

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