Pay for performance can be a minefield

The Globe and Mail contacted Clear HR Consulting for human resources expertise and advice for an article on pay for performance.

Andreas Hesse, a consultant with Vancouver-based Clear HR Consulting, believes that when used correctly, pay for performance can align staff with company objectives while providing a financial reward. This creates a win-win for both the employer and the employee.

Some critical points to setting up effective pay for performance plans include:

identify measurable and realistic goals;
ensure that staff feel motivated by having ownership of achieving their goals on a daily basis;
look at process improvement or cost-cutting goals for employees who perform administrative tasks;
have regular updates to ensure the employee is on track to meet their objectives; and
ensure the plan is fair and consistent.

For more information on creating effective pay for performance programs for your small business, please contact Clear HR Consulting for a complimentary initial consultation.