Pay is changing.
The recession and its accompanying cost pressures have forced employers to stretch beyond base salary increases in exploring ways to motivate and reward employees. Many organizations have used the downturn as an opportunity to relook and reset their pay strategies, often with new emphasis on variable and performance-based pay. Experts question whether base salary growth will return to its pre-recession levels.
So where does this leave merit pay, as we've traditionally practiced it, along with the ubiquitous merit matrix?
Interesting discussions and fits of experimentation are going on around how best to manage investment in base salaries going forward. New formats tend to be more multi-dimensional and more forward thinking than historical practice, which has focused primarily on rewarding past performance. One particular new direction intrigues me, and I have posted some thoughts about it over in the Compensation Cafe today.
Many of you are already taking steps beyond the traditional merit matrix in your organizations. Would love to have you weigh in - come over and join the conversation!
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