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Pay People Right

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Pay People Right

Breakthrough Reward Strategies to Create Great Companies

Jossey-Bass,

15 min read
10 take-aways
Audio & text

What's inside?

That little white envelope that you give to your employees does more than pay them for their work: It communicates your company’s values and goals.

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Editorial Rating

7

Qualities

  • Applicable

Recommendation

According to Patricia K. Zingheim and Jay R. Schuster, if you improve the way you pay and reward your employees, you will motivate them more effectively and enhance their performance. The authors provide a variety of tools for implementing improved reward systems, based on six reward principles and four components of total rewards, including compensation and celebration of individual and team performance. The book includes examples of companies that have improved performance by revamping rewards, though it focuses mostly on when and how to use specific reward strategies. As this step-by-step precis might hint, this generally clear, straightforward book does have some dusty patches where it is dense, dry and didactic. getabstract recommends it, despite the parched spots, to executives and company owners who want to get maximum bang for their salary bucks.

Summary

Six Reward Principles

The following principles will help you develop a successful, total-reward strategy. This includes building a business case for changing rewards in your company, and developing and communicating a total pay system. Changing the way you reward your workforce is a powerful - if difficult - way to motivate employees and improve performance. By itself, pay isn’t a business initiative, but it supports and promotes your business goals and initiatives by building improved employee understanding, acceptance and commitment. Together, these six reward principles create a practical foundation for the rewards you offer.

  1. Create a positive, natural reward experience - Communicate and educate people about why you are changing workforce rewards and advantages. Involving people in the business and reward process helps them understand what is going on and gains their support.
  2. Align rewards with business goals to create a win-win partnership - Both your company and your employees need to gain from their relationship. People who contribute to the organization’s goals should share in its success. To create this balanced win-win arrangement...

About the Authors

Patrick K. Zingheim  and Jay R. Schuster  are partners in Schuster-Zingheim and Associates, Inc., a pay consulting firm in Los Angeles. Experts on the role of pay in accelerating company growth and performance, they co-authored The New Pay which links pay with organizational effectiveness.

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