Variable Pay: Incentives and Consequences
Workplace Application: This session will present the consequences of using variable pay plans to support an organization's business objectives.
The goal of variable pay is to improve organizational performance, and designing the proper plan can be a daunting task. This interactive session will explore the pros and cons of several types of variable pay plans, and introduce ideas on how best to implement them. You will learn about the three main types of short-term incentive systems and the two main types of long-term incentive systems, as well as implementation strategies for all five systems. We will explore the numerous types of variable pay that can be used to incent employee performance, along with the danger zones that can come with each type. You will learn the three-step system to be followed for successful variable pay implementation. The session will conclude with a discussion of the danger zones inherent in any variable pay system and how to overcome these obstacles.
M. Edward Krow, SPHR, CCP, CHCM
Ed is the Human Resources Principal with Implementation Management Group. As HR Principal he manages external consulting engagements and is based in the firm’s Lititz office.
Ed has over 20 years of experience in the Human Resources field. Prior to co-founding IMG, Ed led the HR Consulting practice for a top 25 Accounting firm, operated his own consulting business, Human Resources Essentials, LLC, and spent over a decade with United Parcel Service in a variety of Human Resources and Operations Management roles. Additionally, Ed is currently an adjunct professor at Millersville University. In his current role he provides services in the areas of human resources management, affirmative action planning, organizational development, compensation and reward system design, employment law compliance, training and development, and performance management.