05 Apr How Pay for Performance Software Can Help Your Company
In general, most HR professionals feel that their organization’s ability to pay its employees for performance is critical to its success. Yet, oftentimes, there’s a disconnect between a company’s intention to pay for performance and their ability to actually do so.
According to HR.com, relatively few HR professionals feel that their companies are actually paying for performance. But when you get a pay for performance plan right, it has the ability to majorly impact results. Take a look:
- Pay For Performance Can Pay Off: In the 1990s, the USPS was suffering because its employees did not believe that their performance was in any way linked to compensation. As a solution, a variable pay program was introduced. It paid off tremendously: for the first time in history, the USPS experienced a positive net income for five years in a row (source: gov).
- It Also Boosts Engagement: A recent Towers Watson report shows that pay for performance is one of the four most important drivers for sustainable engagement. Employee engagement has a direct impact on your results, so boosting engagement through a pay for performance model is a worthwhile strategy.
- It Gives Employees Power: Pay for performance creates a sense of empowerment for employees, because they get to feel as if they have an element of control over their income (i.e., the better they perform, they more they could potentially make).
Why Choose Pay for Performance Software?
All of the benefits listed above can only be realized when a sustainable pay for performance plan is implemented, monitored, and enforced effectively. Software can help busy managers track and organize performance-related data, as well as the company’s pay for performance structure, all in one place. Software can also allow you to seamlessly integrate pay for performance plans into your existing processes, alleviating the burden for HR and other busy managers.
HRsoft is a leading provider of strategic talent management software that improves manager effectiveness and business results. Our full suite of cloud-based HR software solutions includes applicant tracking software, compensation planning software, total rewards software, stay interview software, performance management software, and content management software. To learn more about our Performance Management Software, PERFORMview, click the button below!