How do you assess and reward employee performance and potential in times of change?

2 Align your compensation strategy with your change strategy

The next step is to align your compensation strategy with your change strategy. Your compensation strategy is the set of principles, policies, and practices that guide how you reward your employees for their performance and potential. Your change strategy is the plan that outlines how you will implement and manage the change. By aligning these two strategies, you can ensure that your compensation system supports your change objectives, encourages the desired behaviors and outcomes, and reflects the values and culture of your organization.

3 Use a balanced and flexible approach to performance measurement

The third step is to use a balanced and flexible approach to performance measurement. Performance measurement is the process of evaluating how well your employees perform their tasks and achieve their goals. In times of change, performance measurement can be challenging, as goals may change frequently, tasks may be ambiguous or uncertain, and feedback may be delayed or inconsistent. To overcome these challenges, you can use a balanced and flexible approach that considers both quantitative and qualitative indicators, such as results, behaviors, skills, competencies, and potential. You can also adjust your performance criteria, standards, and expectations according to the change context and the needs of your employees.

4 Provide meaningful and timely feedback and recognition

The fourth step is to provide meaningful and timely feedback and recognition. Feedback and recognition are essential components of compensation management, as they help your employees understand how they are performing, what they can improve, and how they are valued and appreciated. In times of change, feedback and recognition are even more important, as they can boost your employees' morale, confidence, and motivation, and reinforce their alignment and commitment to the change. To provide meaningful and timely feedback and recognition, you can use various methods and channels, such as formal reviews, informal conversations, peer feedback, awards, bonuses, or non-monetary rewards.

5 Support your employees' learning and development

The fifth step is to support your employees' learning and development. Learning and development are the processes of enhancing your employees' knowledge, skills, abilities, and potential. In times of change, learning and development are crucial, as they can help your employees cope with the change, adapt to new situations, and acquire new competencies. To support your employees' learning and development, you can offer various opportunities and resources, such as training, coaching, mentoring, career planning, or tuition reimbursement.

6 Involve your employees in the compensation design and implementation

The sixth and final step is to involve your employees in the compensation design and implementation. Involving your employees means seeking their input, feedback, and participation in the compensation management system. By involving your employees, you can increase their trust, satisfaction, and ownership of the compensation system, and ensure that it is fair, transparent, and relevant. You can also leverage their insights, perspectives, and suggestions to improve the effectiveness and efficiency of the compensation system.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?