Irvine, CA, July 05, 2012 --(PR.com
)-- Most companies instinctively know there should be a relationship between what they pay key people and how those individuals perform, but they don’t know the best way to construct plans that reflect that philosophy, according to Ken Gibson, senior vice president of The VisionLink Advisory Group, a compensation design firm headquartered in Irvine, CA. As a result, stories of companies that have created successful pay for performance strategies will be the focus of a webinar to be broadcast by Gibson’s firm on Tuesday, July 24, 2012 (8:30 to 9:30 a.m. PDT).
The broadcast on July 24, entitled “Success Stories in Pay for Performance,” is free to the public. For more information or to register, individuals can go to: http://www.vladvisors.com/business-growth-strategies/event-details.aspx?ID=99
“Given the economy we’ve dealt with over the past few years, most company leaders are adopting a new paradigm about pay,” Gibson said recently. “They are gun shy about ramping up for future growth by hiring new, key people that are locked into high salaries without any real guarantee of getting a return on those comp dollars. CEOs want to hire people that will embrace a pay approach where the ‘real’ money is made out of future value that employees help generate—where incentives are ‘self-financing.’ ”
Gibson went on to say that this kind of pay strategy helps solve a number of problems in the today’s marketplace for talent. There are people in the labor pool that have been either unemployed or underemployed for an extended period of time. They are concerned about having to accept a lower salary when they re-engage in positions they previously held (when economic conditions were more favorable). If businesses can construct pay packages that keep guaranteed incomes at a modest level, but pay generously for real value creation, then everyone wins. This approach allows shareholders and other business leaders to effectively manage their financial investment in rewards while allowing incoming employees to earn potentially more than they did in previous positions.
“Business leaders don’t want to just hear theories about this though,” VisionLink’s President, Tom Miller added. “They want to hear about real businesses that have adopted this approach and had success. That’s why we’re putting on a webinar that highlights companies that have succeeded in implementing a pay for performance philosophy.”
The July internet broadcast will focus on the rewards problems that some of VisionLink’s clients faced and how they navigated solutions that successfully combined guaranteed and at risk pay strategies while also effectively balancing short and long-term value sharing.