Many managers assume that performance-based pay systems will be too difficult to implement. Some assume that they will sap employee motivation, while others aren't sure that employees will maintain the same standard of work if they are given incentives to push through 'more' product. However, the experience of many different companies tells us that performance-based pay systems are actually highly effective at getting employees motivated to do a good job, and keeping them that way! Today we check out how performance based pay systems can tie in with initiatives like telephone-based employee time clocks and time attendance tracking, to create a positive change in your business bottom line!
Pay for performance: A growing phenomenon
In the few years prior to 2008, a study found that while standard employee pay had risen only marginally in comparison to inflation, bonuses based on performance had hit a record high of 12% of the entire country's payroll figure. Given the massive number of businesses that haven't even considered performance-based pay, it seems that there are some companies out there paying quite a lot of profits directly back to employees.
There is a big 'But!' attached to that statement, though. Structured properly, performance-based pay systems don't cost a company extra. They simply ensure that the workers that are contributing most to profits are rewarded, while low-value employees have corresponding rewards.
Performance-pay and time attendance tracking
Performance-based pay and telephone time clocking-type systems are two sides of the same productivity coin. You can make the two strategies work together to achieve more complete and fair results, using techniques like:
- Starting simple by instituting bonuses for people following clock in and out procedure correctly
- Use your telephone time clocking system to accurately measure output for time present at work, and therefore identify bonus-worthy employees
- Creating a forfeit-system for any employees found not to be using the clock-in system correctly
What more can I say, it is all well said. Performance-based pay checks will push employees like me to do more, to perform more. And for the owner, outsourcing payroll will be easier for them, treating it as a happy part of the day, more than a task. And everybody is excited about payroll. Las Vegas small-house casino owners are using this task for their employees to "push more" and "do more" to have a better and progressing payroll. Tax services there became better, because of this implementation. And Some bigger owners are fast following.
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