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SHOW COMPENSATION ME THE MONEY STRATEGIES FOR PEOPLE MANAGERS


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all managers must decide how much to invest in each individual on their team


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you can invest a fixed amount of money and/or time


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so, as a practical example, if you have 10 members on your team, $100,000 in comp, and 30 hours per week to support them, how will you invest?


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how much of your time & money do you invest in your top talent?


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what about your weaker members?


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what about everyone else?


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what is fair? what is right?


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what gets you and the firm the highest return on those investments?


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remember


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it is a fixed pie that you have to work with, so you need to make hard choices


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start by dividing your workforce into 4 categories


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and, since people fall roughly into standard deviations


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it’s a good bet that your team will distribute roughly as follows


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in your team of 10, you’ll have 1 star, 3 potentials, 5 work horses and 1 under achiever the star and potentials will add a vastly disproportionate value to your goals


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here is my recommended investment strategy


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why this distribution?


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RULE ONE comp your stars extremely well so that they stay, and then get out of the way so that they can achieve these guys don’t need much time. they are well trained already. all they need are goals and air cover


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RULE TWO Potentials have the highest return on time comp them above market, but invest a much greater relative percentage of your time so that they become stars


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RULE THREE Comp your Work Horses fairly and spend some time helping them understand & achieve their goals But signal that while it is OK to, "just get the job done," if they stretch themselves towards the Potential category, you'll respond with greater investments


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RULE FOUR Do not comp your under achievers Instead, spend a disproportionate amount of time to help them retrain and/or move out of the function where they are under performing and into another function where they can become a star


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SHARE THIS DECK & FOLLOW ME (please-oh-please-oh-please-oh-please) stay up to date with my future slideshare posts http://www.slideshare.net/selenasol/presentations https://twitter.com/eric_tachibana http://www.linkedin.com/pub/eric-tachibana/0/33/b53 Please note that all content & opinions expressed in this deck are my own and don’t necessarily represent the position of my current, or any previous, employers


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