With performance 1:1s in place, the final system for achieving role clarity is implementing a Scalable Compensation model aligned to goals and objectives.
A strong compensation model:
- Bases salaries on benchmark data for each role
- Provides potential for bonus payouts tied to achieving results and goals
- Matches incentives to measurable outcomes rather than activity-based metrics
- Offers internal promotions and raises as team members take on more responsibility
- Supplements salary with benefits and quality-of-life perks
To develop a scalable compensation model:
- Research salary ranges and bonus structures for each role in your industry
- Add a performance bonus model to relative roles. Performance-based on accomplishing key results in their Role Scorecards
- Consider profit sharing or commission plans for sales roles
- Establish clear criteria for internal promotions and salary increases
- Select supplemental benefits and perks that attract or retain top talent
A compensation model that scales with performance helps you: