Management 3.0 Practices: Salary Formula

What you pay says a lot about your company and if your employees feel valued.

“Money is a sensitive topic, therefore, payment of employees must be treated carefully. A good compensation plan is not only fair, but also supports the culture of an organization. A salary formula can help you keep the trust, prevent demotivation, and pave the way to total transparency.”

The Salary Formula chapter is only available as a free download when people sign up to the newsletter. In this chapter, you will learn how to develop an employee compensation plan that is transparent and fair, that looks to motivate employees.

The requirements for a good compensation plan are fairness, recruitment, flexibility, motivation, trust and effort.

2015-corporate-ladderThere are five reasons that a well-defined salary formula or salary structure is a necessity:

  1. We want the world to know that we pay people fairly for the value they create.
  2. A good plan will let us attract and keep the right people.
  3. A good compensation plan can create stability in uncertain times within an organization.
  4. Of course money influences motivation. A good compensation plan makes sure that joy and productivity stay strong too.
  5. This all reinforces a culture of trust.

In this chapter, you will also learn the three ways a salary formula can be based, how to balance innovation and learning with best practices, how to create groups of people for compensation plans, and why not to include a performance metric.

Remember, you always get what you pay for.

“As the current Generation enjoys work-life integration, people will look at and respond to ‘lean forward’ management. Management 3.0 will provide a complete guide to step out of the office and contribute to a culture of success as a goal while having fun on your journey.” – SEBASTIAN DIEGUEZ, agile coach and scrum master

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