Editor's Note: Too many of our compensation programs follow the ultimately unhelpful trajectory described in Jacque Vilet's whimsical Classic.
In the beginning was the incentive plan.
Its construction was akin to other plans in prevailing fashion.
And then came the doubts and assumptions.
And the doubts and assumptions were without form.
And the incentive plan was without meaningful substance.
And darkness was upon the face of the employees.
And they spoke among themselves saying,
“It stinketh. It will worketh not. We must reveal this to management.”
And the employees went unto their managers and said,
“This plan is a pile of dung and we know it will worketh not.”
And the managers went unto their managers and said,
“It is a pail of manure and the smell is very strong, such that none can abide it.”
And the managers spoke among themselves saying,
“This is not a good report and our directors will liketh not to hear it. We should provideth our directors with a more tolerable tale.”
And they went unto their directors, saying,
“It is a vessel of fertilizer and none can abideth its strength.”
And the directors spoke among themselves, saying to one another,
“It containeth that which aids growth and is very strong.”
And the directors went unto the vice presidents, saying unto them,
“It promotes growth and is very powerful.”
And the vice presidents went unto the president, saying unto him,
“The new plan will promote the growth and vigor of the company with powerful effects.”
And the president looked upon the incentive plan and saw that it was good.
And the plan became policy.
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While this may be an amusing tale, there is a kernel of truth here. Good leaders are hungry for information to truly understand how to make their companies and employees more successful. But unfortunately unpleasant news can get filtered as it goes up the leadership chain.
Here’s the disconnect. Employees know their jobs better than anyone in the company. They understand what works and doesn’t work. Managers should know that too. They should also understand what motivates their employees. All of that information should be passed to Compensation who develops the plan. And Compensation should focus on this input instead of relying on what other companies are doing.
Do you agreeth?
Jacque Vilet, President of Vilet International, has over 20 years’ experience in Global Human Resources with major multinationals such as Intel, Texas Instruments and Seagate Technology. She has managed both local/ in-country national and expatriate programs and has been an expatriate twice during her career. Jacque has the following certifications: CCP, GPHR, HCS and SWP as well as a B.S. and M.S in Psychology plus an MBA. She belongs to SHRM, Human Capital Institute and World at Work. Jacque has been a speaker in the U.S., Asia and Europe, and is a regular contributor to various HR and talent management publications.
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