Intro to the Top Ten Tips...

Each month, Tim posts his 'Top Ten Tips' for HR practitioners on various subjects. This month's subject is 'Spreading scarce bonus/incentive dollars...best bang for the buck'. A list of subjects for forthcoming months and links to previous subjects can be found at the bottom of this page.

From a budgetary perspective, allocate and book an accrual quarterly. This way, any provision for compensation has been taken care of and is less likely to be redirected into profit at the end of the financial year;

Lay out clear expectations as to the corporate and individual behaviours required to earn increases;

Communicate the potential for increases, or otherwise, regularly throughout the business year; if the prospects look bleak - say so and explain;

Educate managers on the importance of giving feedback to employees regularly... twice a year formally, at a minimum... all the time, informally;

Seek out the minority of non-performers and deal with them constructively, yet firmly;

Remember that employees see and react to what management is doing to coach non-performers. Don't pontificate about performance management, if you're not doing anything substantive about it;

Consider departing from the norms of 'COLA' in favour of market alignment of salaries every three years or so. Plough the savings into 'cash' and 'non-cash' incentives in return for agreed results;

Do keep abreast of market rates for 'hot skills'. Realize that a fun, caring and progressive work environment generates more loyalty than cash alone;

Allocate some scarce incentive dollars also towards certain mid-level, competent employees who are the backbone of key project deliverables; too often they're overlooked in favour of the 'high flyers';

Thank employees for a job well done...it's almost as good as cash and certainly tax-effective!

Timetable 2000 ... Top Ten Tips

Month	Subject
March	Interpersonal Conflict in the Workplace
April	Harassment in the Workplace...practical considerations
May	360° Feedback...is it right for you?
June	Settling post-termination disputes; mutual gains
July	Business Planning in HR...how to flex HR's muscle
August	Grievance management in unionized and non-unionized workplaces
September	Key Lessons in 'Downsizing'...maintaining business & employee relationships under difficult circumstances
October	Stock Option Plan Design in private companies heading for an 'IPO'
November	Ethical Practices in Performance Appraisal & Related Salary Admin
December	Spreading scarce bonus/incentive dollars...best bang for the buck
January 2001	Outsourcing...the 'Catch 22' for HR Managers
February 2001	How to write really useful Job Descriptions...connecting the business dots
March 2001	'High Potential' Employees...how to ensure they don't sit out the game, then leave