On variable and merit pay with Teodora Gorski at HR Summit and Expo 2014
The presentation “Workplace Perspectives: Linking variable and merit pay to organizational performance” was offered, in the first day of the HR Summit and Expo 2014, by Teodora Gorski, Managing Director MENA, The KPI Institute.
The presentation focused on explaining the way in which the pay-for-performance systems implemented within organizations impact business outcomes and offer them a competitive advantage by retaining top-performers.
Starting from the performance management architecture and the organizational levels, Teodora Gorski first detailed performance management at the individual level.
According to Teodora Gorski, the steps needed for implementing pay for performance plans that she emphasized are:
- Get managers buy-in;
- Create and implement a performance management system architecture;
- Ensure employee acceptance;
- Set clear goal definition and unambiguous performance measures that are clearly linked to employee efforts;
- Implement individual performance plans.
Another key part of the presentation was establishing the distinction between merit pay and variable pay.