http://blog.vladvisors.com vladvisors Sat, 27 Feb 2010 01:45:15 +0000 http://backend.userland.com/rss092 en That question probably crosses the mind of a CEO at least a couple of times a year--perhaps when a salary increase has been approved or a bonus is paid out.  What he or she means by the question is essentially this: "Boy, collectively I'm paying my top people over $1 million a year; ... http://blog.vladvisors.com/current-pay-trends-and-topics/why-isnt-our-compensation-strategy-working Companies that struggle with building effective compensation strategies are often ascribing an unrealistic expectation to their rewards programs.  They want compensation to be a motivation tool; one that will impact behavior  and create change.  They are often disappointed when they don't see quantum leaps in performance and productivity.  They subsequently label the latest incentive plan attempt ... http://blog.vladvisors.com/uncategorized/compensation-its-about-partnership-not-motivation I assume that as you approach each new year, you don't think about your business in modest terms.   Presumably, you have big plans, and are trying to renew your employees' vision of the possibilities.  Breakthrough growth.  New thresholds of success.  Expanded sales and market share.  Increased profitablity.  Greater shareholder value. With that ... http://blog.vladvisors.com/uncategorized/why-not-have-a-world-class-compensation-plan Okay, so Peter Drucker never really knew VisionLink.  That's a detail.  However, his philosophy about pay at the executive and management level was "spot on" with what we believe should be a core tenet of rewards design: Build world class compensation strategies that are rooted in pay for performance and drive ... http://blog.vladvisors.com/current-pay-trends-and-topics/peter-drucker-agrees-with-visionlink One of the best things that should result from good compensation policy is clarity. "I get it! Now I know what results you expect from me." This is one of the best possible reactions you can get from an incentive plan.  The problem with many incentive plans is that they ... http://blog.vladvisors.com/current-pay-trends-and-topics/do-you-want-your-incentive-plan-to-work-here-are-3-essentials Okay, so it may not be THE question--Shakespeare had a better one I suppose.  But it certainly is a frequent question we are asked, particularly by leaders of closely-held businesses.   Should I offer equity or not? It is probably self-evident that there is no right answer  to that query.  We have private company clients that share ... http://blog.vladvisors.com/incentive-planning/to-share-equity-or-not-to-share-equity-that-is-the-question In his book The Speed of Trust, author Stephen M. R. Covey asserts that the trust level in an organization affects two things: speed and cost. When trust goes down, speed goes down and costs go up.  (Consider the time and cost of airport security after 9/11, or costs for ... http://blog.vladvisors.com/current-pay-trends-and-topics/compensation-and-trust Yes, a competitive advantage has a sound.  I heard it last week during a management society breakfast meeting for a group  I lead.  It was given voice by the presenter, Said Hilal, CEO of Applied Medical Devices.  It was clearly on display both in what he said and in the confidence with which he ... http://blog.vladvisors.com/uncategorized/what-does-a-competitive-advantage-sound-like As a compensation consultant I've asked myself a lot, "Can compensation make a difference?"  There are those that say "no." In this presentation noted career analyst Dan Pink claims that incentives are just plain wrong--that they actually lead to poorer performance. http://www.knowhr.com/blog/2009/08/25/everything-you-think-about-pay-for-performance-could-be-wrong/ Others have made similar claims. However, these arguments miss ... http://blog.vladvisors.com/current-pay-trends-and-topics/do-incentive-plans-work Recently I received a request to submit an article to a newsletter about "Holistic Compensation." Well, that's a new one, I thought. I've used lots of terms to describe the uses of compensation systems, but that's one I missed. We prefer the term "strategic compensation." Because of a tight deadline I ... http://blog.vladvisors.com/uncategorized/strategic-compensation-equal-to-holistic-compensation