Competency = know-how + skills + behavior A career ladder serves as a guideline for employee’s career path in the company. It usually represents a collection of hard and soft skill requirements for a specific role in the company. Let’s take an engineer who starts as a junior and his problem solving skills, communication needs,
Equity is the most meaningful form of a long term performance compensation. In publicly traded companies the equity compensation plays a significant role for senior executive managers. Subject to market capitalization, the individual equity component can be anywhere from 10x to a few hundred times the fixed salary. It usually comes in form of a
At high performing organizations the guiding compensation principle is the growth & profit responsibility. I have seen a very few companies where the company’s performance played a leading role in compensation. While your senior team has the highest impact, it could not be done without the support of your junior staff. Higher risk accountability =>
Profit sharing among employees can increase ownership, accountability, and performance. If structured and communicated properly, it unlocks performance potential by inducing employees in search for growth or profitability measures. The profit sharing can structured around operating profit, gross margin, or cost savings. Example #1:Company sets a profit target of $0.5 mil. It allocates 1/3 of