Results Management: Effective People Management to Achieve Excellent Results

Chapter 5. Compensation System: Paying for the job. Paying market rates. Paying for performance

At the next training session, on compensation, I told the Resu group about a friend of mine whose company was swamped with orders just as it was about to close down for a two-week vacation. Desperate to fulfill these orders, rather than using temps who would not be familiar with the business operations, the company offered employees of all levels two weeks' pay in lieu of leave to multi-task. I asked the participants for their views on whether this offer would motivate people and, if so, which members of staff would be likely to respond to the offer.

The responses were varied. The Facilities Group, for example, felt that the managerial group would be unlikely to take up the offer, but would "go on vacation, especially if it is during the school holidays. The non-managerial staff would take the pay and carry on working because they need the money more."

The Sales Group thought that the majority would carry on working because "Two weeks' pay can be quite substantial, whatever the category of employees."

The Production Group thought that some might take one week's vacation and one week's pay, if they have not had a vacation with their families before this, assuming this was permissible.

The Finance Group had a quite different view: "We feel managers should understand the importance of clearing ...