Pay-for-performance (PFP) compensation plans have a dual nature—increasing both productivity and financial insecurity among employees—so leaders may feel like they’re walking a tightrope in trying to get the right balance. While the PFP model can motivate current employees and help attract high performers, the financial incentives inherent in PFP can also shape a hyper-competitive and fractious culture which can contribute to employee burnout and turnover.
In this course, explore the intricacies of building effective pay-for-performance compensation plans. Learn about insightful strategies to enhance productivity while maintaining a supportive organizational culture. Discover three essential ways to wisely design PFP plans that attract high performers and promote a balanced workplace. Dive into topics like managing the risks associated with financial incentives to prevent employee burnout and turnover. By the end of this course, you will be equipped to create compensation plans that not only drive productivity but also foster employee satisfaction. Enhance your leadership and management skills with insights backed by trusted expertise from MIT SMR.
Note: This course was created by MIT Sloan Management Review. We are pleased to host this content in our library.
Audience:
- Executives
- Senior Leaders
- Managers
- Human Resources Directors
- Compensation and Benefits Managers
- Talent Acquisition Specialists
- Performance Management Analysts
- Business Unit Leaders