Q: Does the compensation plan that I offer really make a difference in retaining top talent and increasing performance?

A: Yes, in an increasingly competitive market, corporations must provide an environment in which its employees can thrive. One way of doing this is by offering a compensation plan that works specifically for you and your staff. Here are four of the most popular rewards based plans used today:
■  Skill-Based Pay: As employees gain mastery of essential job skills, their compensation is increased accordingly.
■  Competency-Based Pay: Compensation is based on the extent to which employees display character skills such as leadership, observance of details, and multi-tasking.
■  Variable Compensation: Employees receive a below-average base salary, but earn additional bonuses by meeting or exceeding set goals.
■  Profit Sharing: Employees receive a base salary, and receive quarterly or annual profit sharing in the form of stock options, contributions to a 401K plan, or a bonus check.