Organizations recognize compensation as an important factor in employee satisfaction. Many companies are committed to providing compensation packages that are competitive and reward great performers for the results that they achieve. Today, organizations have moved away from the times where end of the year increases were automatically given, regardless of how good or bad one performs. We are operating in times where salary, bonuses, and other incentives are directly linked employee performance. While many associates may believe pay raises and other incentives are entitled, organizations are placing more emphasis on employee performance to determine if salary increases are deserved.
Organizations use different methods in granting pay raises for employees. In this paper, we will discuss the three methods my employer, Wellpoint Inc., use in determining pay increases for associates. Individual performance, departmental performance, and organizational performance are all key factors in determining salary increases. Wellpoint Inc. ensures all employees have the opportunity to participate in achieving individual and organizational goals that will ensure the company is successful. The Annual Pay and Recognition Process, the system Wellpoint Inc. uses for determining raises, recognize top performers through merit increases, end of year bonuses, and stocks.
The performance appraisal system used for employees is an ongoing process. For individuals, salary increases are determined by ones performance of job duties. Tying pay to performance has been proven to motivate employees to perform job duties more effectively and efficiently. Management and employees work together to develop goals and objectives for the employees to meet. The goals and objectives created should be measureable in terms of quality and quantity. Management meets with employees on a monthly