because your employees are your business

Case Studies

3 Things You Need to Make Merit Decisions Without Ratings



Your organization wants to do away with ratings. But if you do that, how are you planning to determine pay increases?

The good news:  you can make pay decisions without ratings.  You first need to establish an approach to understand, differentiate, and measure performance.  The three factors to consider are: 

  1. Employee Performance Measurement Metrics:The ability to differentiate employee performance
  2. Merit Budget:Typically a fixed dollar amount that is set aside to recognize and reward employees.
  3. Pay Range Structure:Market data or an internally developed salary scheme (which should correlate to market data) will determine the minimum, mid, and maximum pay ranges for the positions in your organization.

I’ve put together a five-minute video outlining my process. A deeper dive into how everything works can be found in the rest of the blog post below.

 

Step 1: Establish Employee Performance Measurement Metrics

The 5-level rating scheme is too limited to measure performance meaningfully - it needs to go. But most see the only alternative as having no system to measure and track performance. Establishing a new, more robust measurement system is a must.

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Dencap Dental Plans Case Study


“I have never liked annual performance evaluations. This process keeps people's work performance and behavior at their personal top level all year long, and mine!!”                    

–Joe Lantini, CEO, Dencap Dental Plans, Inc. 

 

Dencap Dental Plans, Inc. has been providing excellent dental coverage plans to employers, individuals, and families since 1984. Initially, the company was staffed with eight or nine managers and customer service providers, but in the last two years the company has grown to employ six executives, four managers, and twenty-seven customer service providers. Angela Lentine, Manager of Strategic Initiatives, identified the need to maintain communication throughout the organization in the face of such major growth and contacted Employee Performance Solutions. Still a lean company, and mostly family-run, she decided to conduct training sessions for employees herself in order to provide in-house continuity and on-going management of communications and growth needs.

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Higher Education Case Study


“We chose Employee Performance Solutions because their expertise is specifically in helping organizations shift from “feedback isn’t the norm” to a culture of performance feedback conversations. The tools and training are grounded in research yet the application is practical and immediate.”

A needs assessment undertaken by this client identified providing performance feedback as their greatest

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