- 1). Research appropriate competency and performance measures for all job descriptions at your business, from the cleaning staff up to and including the president or CEO. Depending on the type and size of the business and the complexity of the employee job descriptions, this step might require input from a human resources consultant.
- 2). Review the proposed competency and performance measures with employees who actually perform each job to make sure the measures are fair and accurate. Getting this kind of direct feedback not only assures a more fair system, getting employees invested in it early will help with acceptance of the new policies.
- 3). Announce the competency and performance-based compensation plan several months before it is initiated and hold meetings to discuss it with employees. Make sure to present it as an improvement of the system and an opportunity for everyone to make more money.
- 4). Start the new compensation program on the same date for all employees. Distribute a copy of the new competency and performances measure that have been determined for their positions in advance and make sure that everyone fully understands them.
- 5). Make an initial review of the new system after three months to assess how it is going and whether there are any kinks that need to be worked out. It is important to solicit and be responsive to employee feedback at this point, but try to avoid making major changes in performance measures if possible as changes to just one area of an integrated plan can create unfairness issues elsewhere and make problems down the road.
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