Updated: Feb 14, 2019
Link Pay to Performance in Down Market
A major manufacturer of commercial building systems faced tight budget constraints because of a downturn in the construction business. The company was particularly concerned about losing key employees due to a limited salary budget.
Design Pay for Performance Plan to Meet Company Objectives
After conducting a market analysis of the company’s current pay program, The Chatfield Group developed a conservative pay structure covering multiple locations.
To gain maximum leverage from scarce salary dollars and retain high-potential employees, we designed a pay-for-performance matrix and guidelines that optimize rewards for high performers while limiting pay increases for others. In addition, we reviewed performance levels to ensure that the new pay structure could be implemented within budget.