The answer lies in going back to the basic concepts of variable compensation and evaluating the application of momentary adjustments to reactivate the variable compensation plans, for which there are some key steps to be reviewed (RCP):
Main key elements of the mechanics of the variable compensation plans (depending on the plan):
- Type of plan
- Spheres of success
- Weighting levels
- Payment curve
- Goal setting
- Measurement frequency and payment cycle
- Administration Guides
Depending on the magnitude of the impact, it is important to apply adjustments to adapt to the current situation, continue the business, and then focus on recovery (once the operation returns to normal).
The key elements to implement quickly and effectively in a situation like the current one, it is essential to define managers, activities and times to reduce negative impacts in the short term, provide peace of mind to employees and prepare the organization for the long term.
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