5 Principles of Remuneration System
published in: Leadership
03 Sep
2010
The remuneration
system is one of many elements that directly affect the success of the company.
Unfortunately, there is no universal efficient system
applicable to all the specifics of various types of businesses and
individuals. But there are principles which distinguish the better
remuneration systems:
Principle 1. Top performance clear definition. (把｢最佳表現｣ 定義清楚)
Whatever
remuneration system is applied if disclosed to the staff there will be
colleagues angry because of their low salaries. Other colleagues with higher
salaries will also be unhappy because their salaries are not higher enough over
newcomers’ salaries... The objective prerequisite for such behavior is the lack
of a clear picture of what a top performance is. It is managers’ responsibility
to disclose the criteria for top performance in such a way that each team
member to have a clear idea of what an outstanding performance is.
Principle 2. Remuneration should be directly
linked to present objectives. (報酬直接連接現行目標)
The most common
mistake is giving priority to long-term objectives while setting remuneration
based on current earnings.
Principle 3. If an employee may get fired for
poor performance, s/he must have the opportunity to get "rich"
for top performance.(若有因績效差而被開除的風險就應相對有因最佳表現而致富的機會)
Colleagues who have
excellent performance that exceeds top performance standards must receive
decent salaries.
Principle 4. Extra remunerations.(額外報酬)
The remuneration
system must allow extra payments for merits. Some of the most neglected merits
are the merits of training newcomers. If you have in your department employees
who teach and train well, you must reward them as they actually build the company spirit. It
is that men’s will - to give more of themselves than their duties require -
that distinguishes the great companies from the ordinary ones.
Principle 5. Acknowledgement.(對報酬的認知)
Use every bonus or
salary increase to personally recognize the contribution of your top
performers. Money cannot buy you loyalty! Loyalty is won by highly principled
and fair treatment.
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