Doing more with less - less people, less money, less everything - has become the mantra of the recession and recovery. And it has worked. Propelled in no small part by fear and anxiety, American business productivity has surged in recent times. While it is showing the expected signs of slowing down in the last few months, productivity has risen 6.3% over the past year, the largest gain in nearly half a century (Wall Street Journal, subscription may be required).
And employees are feeling the heat. According to a recent Right Management survey of more than 800 North American workers, 79% report that their workloads have increased, 57% say that they have increased "a lot".
It strikes me as an opportune moment for variable pay. If we are truly undergoing a shift in pay mix, away from fixed base to variable "at risk" pay, if we hope to sustain some part of this new productivity with workers who've seen no-to-low salary increase opportunity in recent years, what a great time to put the plans in place that will help them share in the gains they are helping to create. And create the spirit of partnership that could engage and retain them for the longer term.
In other words, if we're going to change things up, let's take advantage of the chance that recovery and productivity gains bring us in order to do it when there is good to be had. When there are genuine gains to be shared.
A number of you, I know, are already on the bandwagon and have plans in place that are delivering generous rewards for the value workers helped build during tough times when costs and salaries had the screws put to them. To you, I say well done.
To everyone else, time to get moving!
Image: Creative Commons photo "Business Graph" by NDevilTV
What a welcome bit of news...
Your perspective is right on target. It is a fantastic time to shift variable pay into high gear!
Posted by: Vita Taylor | May 19, 2010 at 06:16 PM