Employee Emotional Contentment- Another Facet of Incentive Compensation Management
The current economic severity continues to be a challenge to all. Analysts across industries are coming up with their own assessments, from The New Normal, to those who predict an upturn any day now. Whether it’s an adjustment to a new order or to cope with a passing phase, companies are certainly restructuring their processes and many organizations have begun to realize the value in restructuring their compensation models to start with.
Along with the economy, emotions are also turbulent amongst stockholders, employers and employees alike. Growth and stability initiatives rest on their shoulders, and the pressure to set companies on the right path to recovery creates an enormous stress on executives and employees alike. The margin of error for each individual is almost non-existent. Hence, they need to place themselves in the best possible position to make ever increasing and well-thought out critical decisions.
Weathering the stress effectively calls for high Emotional Intelligence (EI) levels. Talented workers with the right mix of industry skills and EI are always sought after and highly prized. As emotionally content employees are better equipped to deal with high stress and tight deadlines in day-to-day activities, they always are and will be in constant demand in the competitive market. Therefore, it is critical not only to motivate employees but also to ensure their emotional contentment throughflexible incentive compensation planning.
With changes in industry trends and employees’ needs the value of seamless, accurate, compensation management goes a long way in aligning employees to the organization’s overall goals. This becomes an inspirational vehicle to maintain the right emotional balance among employees and reach company’s objectives. This, in turn, ensures a satisfied group of employers and stockholders.
Channelizing the compensation system into the process is being favorably considered as the crux to effectively increase employee performance in economically bleak times as this excerpt from a survey by Deloitte Consulting LLP indicates:
“Nearly a third said they were considering additional programs to keep key employees — often special payments to supplement regular bonus pools.”