The New Pay

"Change will require modifying many of the attitudes, plans, and approaches to both how we work and how we are paid. Organizations and employees will share the responsibility and rewards for success."

"Although the organization believes that employees work for many reasons in addition to the pay they receive, it views pay as one key element of communication with employees that can be managed to ensure that it carries the proper message."

"Human resource strategies define how people will be deployed to support the tactical and strategic goals of the organization."

"Total compensation programs are obviously best designed to reward results and behaviors that are consistent with the key goals to the organization."

"Pay is above all an employee-relations issue and that how employees view pay is important to the success of a total compensation strategy."

"Making a high-involvement culture a practical reality is a major challenge."

"New pay provides that base pay will be limited to functions it performs better than variable pay and indirect pay."

"Pricing skills is a challenge because it is not yet possible to exchange pricing information on individual skills or blocks of skills."

"New pay job evaluation involves using the labor market primarily and internal equity within broad job functions secondarily."

"Contrary to traditional base pay increase practices, new pay base pay adjustment is not a cost-of-living increase but reflects what it takes for the organization to maintain its selected competitive position in the labor market."

"An element of new pay is the partnership, wherein the employee and the organization share in the financial success of the organization."

"Variable pay will play a major role in the total compensation strategy and practice of organizations that are concerned about how they will continue to compete effectively in the future."

"A variety of approaches to variable pay are possible."

"New variable pay accomplishes a wide range of objectives better than base pay and indirect pay because of its flexibility."

"The new pay view of indirect pay is to contain indirect pay costs to free dollars to spend on direct pay, particularly variable pay, where the organization can get more return from its investment."

"Instead of simply administering health care benefits, organizations need to manage them as they would any other expense."

"In the future, the "here and now" will gain additional attention unless retirement protection can become more contingent on results produced than on how long the employee is with the organization."

"Effective flexible benefit programs consider both employee choices and cost containment."

"Each venture into new pay will provide experience in how to match the proper pay solutions to specific circumstances."