Karen Jorgensen - Pay for results: a practical guide to effective employee compensation
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Pay for results: a practical guide to effective employee compensation
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This book shows how to use compensation as an incentive tool and as a management resource, and explains complex issues.
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A Practical Guide to Effective Employee Compensation
Karen Jorgensen
MERRITT PUBLISHING A Division of the Merritt Company Santa Monica, California
title
:
Pay for Results : A Practical Guide to Effective Employee Compensation Taking Control Series
author
:
Jorgensen, Karen.
publisher
:
Silver Lake Publishing
isbn10 | asin
:
156343136X
print isbn13
:
9781563431364
ebook isbn13
:
9780585044095
language
:
English
subject
Compensation management, Wages and labor productivity.
publication date
:
1996
lcc
:
HF5549.5.C67J67 1996eb
ddc
:
658.3/22
subject
:
Compensation management, Wages and labor productivity.
Pay for Results
First edition
Copyright 1996 by Karen Jorgensen
Merritt Publishing
A Division of The Merritt Company 1661 Ninth Street Santa Monica, California 90406
For a list of other publications or for more information, please call (800) 638-7597. In Alaska and Hawaii, please call (310) 450-7234.
All rights reserved. No part of this book may be reproduced, stored in a retrieval system or transcribed in any form or by any means (electronic, mechanical, photocopy, recording or otherwise) without the prior written permission of the copyright owner.
Library of Congress Catalogue Number: 96-075085
Jorgensen, Karen
Pay for ResultsTaking Control Includes index. Pages: 334
ISBN: 1-56343-136-X
Printed in the United States of America.
Acknowledgments
I want to thank the business leaders who contributed to this book and allowed me to use their businesses as examples. Also, the stalwart staff at Jorgensen: Susan Barlow and especially Keith and Brian Dowling. Without them, this book would be only a dream. I also would like to acknowledge Jim Walsh and Jan King at Merritt Publishing for their superb guidance.
I will acknowledge that we all are constantly learning and growing. Each unique individual has a real purpose in supporting our lifestyles as Americans. Paying for results helps us all to understand and respect each other for our contributions.
I have always wanted to share my experiences and ideas with CEOs and business leaders. I rememberas a personnel managerthinking: "If they would only let me run the company for a month, I could really show them."
I used to believe I knew all the answers. Now I'm not so naive.
Each company's rewards and incentives are unique and tailored to specific business needs. They do have common elements and processes. Compensation and rewards are always changing with our evolving business structures. This book is a small step toward "telling it like it is"to provide a guide to the business owner in identifying result areas, measuring communications and rewarding staff for their unique contributions to a business's success.
Pay for Results isn't just about incentives, it's about changing behavior to improve your company's strategic advantage. CEOs cannot change behavior, but they can provide employees with incentives that focus on required resultsto encourage group, team and individual behavior changes and support the growth of American businesses.
Karen Jorgensen La Crescenta, California June 1996
This book is designed to be used as a tool to help business owners and managers build effective employee compensation programs. It is not a legal reference. If any reader has questions about the legal status of a pay plan he or she is considering, he or she should consult a labor attorney or human resources expert.
Pay for Results is the seventh title in Merritt Publishing's "Taking Control" series, which seeks to help business owners deal with the host of extraordinary risks facing the modern business enterprise. Upcoming titles will cover customer service, making presentations to bankers or investors and other topics. To keep these projectsand the series as a wholewell focused, the editors at Merritt Publishing welcome feedback from readers.
Page i
Pay for Results
Table of Contents
Introduction: The Rules for Paying People Are Changing
1
Chapter 1: The Case for Incentive-Based Pay Plans
5
Chapter 2: Determining Pay Philosophy and Policy
25
Chapter 3: Establishing Market Base Pay
41
Chapter 4: Designing a Simple Incentive Plan
61
Chapter 5: Non-Cash Rewards and Recognition
87
Chapter 6: Team Incentives
113
Chapter 7: Paying for Sales Results
137
Chapter 8: Management Incentive Plans
157
Chapter 9: Are You Ready for an Incentive Plan?
189
Conclusion: Some Final Points to Consider
207
Appendices
215
Recommended Reading List and Source List
331
Index
333
Page 1
Introduction: The Rules for Paying People Are Changing
Rewards and recognition are becoming more and more important in the workplace. The nature of employment and the benefits that people look for in their jobs are changing on what seems like a daily basis. Traditional methods of motivation and compensationslow, steady advancement over a long careerno longer work.
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