Productivity Based Remuneration
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Productivity Based Remuneration |
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Productivity Based Remuneration
is a pro-active methodology
whereby the organisation ensures that its Human Resources
expenses do not exceed a specific, pre-planned ratio to a defined key business indicator.
Many companies go through difficult periods at times. Often the easiest way out of trouble is to drastically cut Human Resource expenses. This puts the organisation under much stress (apart from Labour Relations issues) as it has to part with an often expensively acquired insfrastructure of people skills. It also causes pain and distress to the people who are laid off and who can often not find alternative employment all that easily. There is, however, another solution which is on based the principle of controlled auto-balancing or homeostasis. This is achieved by linking the remuneration processes directly to the KPI's of the organisation as they are, for instance, contained in the approved balanced score charts of the company. Simple contigiency plans act as a buffer. Without these pro-active measures, an expense/profit ratio crisis could not only cripple the company, but also end its existence. Expedimus has the expertise on board who can teach essential business control skills to managers and employees and can help with the physical implementation of pro-active toos and methods, as well as remedial action where applicable. |
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| webmaster@expedimus.co.za | ||