Glass Ceiling and Job Worth

The situation:

An employee receives the highest performance rating during their performance review but receives little to no increase in salary. The employee has reached the top of the salary span for the position. Is it ethical to give salary increases to lower performers and little or none to the outstanding performer?

Compensation Advisor says:

Yes, the job is worth a certain amount. If you kept increasing the pay, potentially an outstanding performer who’s in an Administrative Assistant position could earn equal to a professional who is a valued contributor performer. A job is worth a certain amount.

Compensation Analyst says:

What added value is the outstanding performer adding? Would the company be just as well off with someone with less experience (assuming less experience = less salary) in the same position or with lower performance. What added benefit/value is the outstanding providing above what is required and is it responding to a business need?

Manager says:

Well if I can’t give a salary increase, what can I give the employee to reward them for their outstanding performance?

HR Representative:

This situation requires us to think outside the box. Rewards are not simply of a financial nature. When you were a child, what did you parents offer to give you if you achieved a certain task or behaved well? Chocolate. Later Bed Time. Favourite food for supper. Extra Dessert. I’m not suggesting these to be the answer. I am suggesting you think of non-financial rewards that provide some sort of value for the employee.

For example, a special recognition gathering, a conference, a special assignment or project, flexible schedule, additional vacation, VIP parking, job enrichment –additional responsibility, lateral transfer, designing new systems, process, procedures, international assignment, more time to develop mentorship/training program, or appointment to a elite committee.

You could also look at providing a one time bonus. Bonuses are not incentives and are unknown prior to. A bonus could include use of corporate jet for a trip, a spa package, tickets to an event, gift certificates, electronics, or cash. The great thing about a bonus is it is a one time thing and if performance changes it is not a locked in obligation for the company.

Improvement and Innovations Restricted Here

Policies & Procedures are created to enhance and improve operations and business function integrity. The question to be raised is: what happens when the policies & procedures in regards to change prohibit our ability to be innovative, adapt, and change to the ever changing market environment? Does a company suddenly loose competitive advantage, efficiencies and effectiveness when their change management process is too restricted or slow?

Change scares people. It’s not the change, but the inability of people to manage their emotions caused by the uncertainty of change that is the problem. The world is constantly evolving and changing. Avoiding change is counterproductive and prohibits success. Failure to evolve and change makes it more difficult to remain competitive and survive.

When it comes to Business, the expression “Keeping Up with the Jones” holds true in many cases. Supply and Demand do exist in terms of employees. When the demand for employees is greater than the supply there are two options –exit the market (business) or compete. However, the demand and supply is not necessarily equal for all types of employees in a market at the same time, ie) administrative, technical, professional, occupational.

Leaders do right things, Managers do things right.

I took a managerial skill development course. The professor stressed the importance of SMART goals and objectives. He also pointed out the need to stop having meetings about what to do and to make decisions and act.

“You can calculate the influence of the wind on shooting an arrow, but the wind gusts; the wind changes, you will forever be calculating and never shooting. You need to shoot, evaluate, shoot again until you hit the target dead on.” The same holds true in business. Companies never survive on doing research alone; something has to be done with the research. Google and Apple didn’t research forever what customers wanted. They created, and introduced their products to the market got market feedback and introduced upgrades and the next generation of products. Constantly changing, adapting, upgrading, and improving.

If a company has a process or policy that slows down the change and adaptation process, the ability to be competitive slows down if not diminishes completely.

My point, have a goal, vision, make a plan, shoot, review, adjust, shoot and repeat until you hit your target, standing around forever discussing what should be done, doesn’t do anything. Situations, circumstances and target are constantly evolving and changing, so should your strategy and actions.