Page 111 - Retaining Top Employees

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Compensation: Why It (Almost) Doesn’t Matter 99

Imbue your compensation plan with an identity: give it a
name, maybe even a logo, and a “responsible officer.” Send out
bulletins from time to time on recent progress and awards.
When making a bonus payment, don’t just mail out a check—
even with a thank-you letter from the CEO. Gather everyone in
the department, stand on a table, and get a round of applause
for the recipient. Work the plan!

Remember the Personal Touch
No compensation plan can institutionalize what most people
want from their employer—a recognition that they matter as
individuals. Even the best compensation plan is no substitute
for walking down to Juanita’s desk, looking her in the eye, and
saying, “Thank you.”

Manager’s Checklist for Chapter 5
❏ Base pay, incentives, and benefits are satisfiers, not moti-
vators.
❏ Bonuses, perks, and properly designed deferred compen-
sation are true motivators.
❏ Adjusting compensation will only have a one-time effect,
unless your compensation plan meets retention-specific
goals and employees consider it to be fair, clear, consis-
tent, and honored.
❏ Compare your compensation plan with best practices else-
where, make any required adjustments, and then market
the new compensation plan internally and externally.