Performance management

Performance and reward are inextricably linked. Highberg’s consultants can determine the right reward instrument for your organization.

That performance and reward go hand in hand is evident from the following examples:

The design of salary scales and salary increases is crucial for internal reward ratios. For example, if it takes too long to reach the maximum of the scale, employees may perceive this as unfair and thus demotivating.

Variable reward schemes such as bonuses and sales incentives tell employees what the main objectives are for their own role and department. If well designed, variable remuneration can also have a positive effect on productivity.

Variable reward schemes linked to company performance provide variability in labor costs and strengthen a sense of belonging within the organization. These schemes can also be used to communicate the organization’s strategic priorities and values.

In certain situations, appraisal scores can be an effective tool to objectify differentiation in reward and to ensure consistency across departments and teams. However, when appraisal scores are inappropriate or incorrectly applied, this can result in unfair situations and demotivate employees.

Non-financial forms of reward, such as recognition schemes, help in valuing employees who demonstrate exemplary behavior or exceptional initiative.

Online gamification platforms are emerging and can be used for behavioral change and playful competitions between, for example, call centers or sales teams.

Highberg believes in a holistic approach to developing performance and reward policies.

We not only determine the most suitable design for the underlying employment conditions but also ensure the integrity of the reward policy. Each reward instrument must fulfill a unique purpose and seamlessly integrate with the rest of the employment benefits package.