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GR6:
Variable Pay - Improving Performance with Variable Pay
- Designing for Results
Course Overview
· Discuss
variable pay as a component of total rewards
· Learn
about the three categories of variable pay
· Identify
common business strategies and objectives for achieving them
· Examine
internal and external factors
· Discuss
the activities for designing the structure of the plan
· Find
out aspects to consider in establishing target performance and payouts
· Learn
about funding and distribution of plan earnings
· Discover
how to implement, communicate and evaluate the success of your plan
This
intermediate-level course presents the fundamentals of variable pay. The
course focuses on compensation strategy and variable pay, definitions and
the design and implementation of incentive, recognition and bonus plans. On
the fourth morning, an optional certification exam is administered covering
the content of this course.
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Who Should Attend
Course GR6 is designed for HR professionals responsible for
designing, assessing or maintaining variable pay programs.
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What You Will Learn
Total Rewards and Variable Pay
• Elements of compensation
• Categories of variable pay
Supporting Business Objectives through Variable Pay
• Business strategy
• Business objectives drives
business strategy
• Business life cycle
• Variable pay supports business
objectives
Types of Variable Pay
• Incentive plans
- Short-term incentive plans
-- Profit-sharing plans
-- Performance-sharing plans
-- Individual performance based
plans
- Long-term incentive plans
- Equity- and non-equity-based plans
• Bonus plans
- Referral bonus
- Hiring (sign-on) bonus
- Retention (stay) bonus
- Project completion bonus
• Recognition plans
- Spot awards
- Managerial recognition
- Nominations
-
Organizationwide recognition
Developing a Variable Pay Plan - Phases 1 and 2
• Phase 1: Pre-Design
- Considering internal and external factors
- Obtaining management support
- Identifying the design team
• Phase 2: Design
- Determining plan objectives and plan type
- Defining eligibility
- Selecting performance measures
Developing a Variable Pay Plan - Phase 3
• Phase 3: Funding and distribution
- Determining performance targets and payouts
- Funding the plan
-
Distributing plan earnings
• Final approval
Implementation and Evaluation
• Plan implementation
- Selecting the implementation team
- Developing the communication plan
- Introducing the plan
- Coordinating plan administration
• Plan evaluation
- Determining plan effectiveness
- Why plans fail
- Potential evaluation outcomes
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Credits
GRP: Required;
Certificate in Global Remuneration Administration: Elective;
Recertification: 2 course, .5 Exam
CEUs: 1.5 Course,.3 Exam; CCP Equivalency: C12
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