But that same even-spreading methodology quickly loses its appeal when applied to compensation. In fact, instead of savoring the potential of review and raise cycles, many of the highest performers in an organization get a little itchy at the prospect of being paid in even increments to everyone else in the business, regardless of impact.
As a result, many businesses get into a cycle of reactive compensation, jumping when key players decide to make a move to get the pay they think they deserve.
At Saba, we think there is a better way to personalize proactive compensation based on distilling Value, Risk and Cost variables for each person in your company to find the most valuable—and most likely at risk—members of the team for more proactive approaches to compensation, weighted proportionate to their impact.
For more perspective, check out some straight talk from Saba’s CTO, Hemanth Puttaswamy and CMO, Emily He about this issue in this week’s, Recruiter.com article: Put Away the Peanut butter: A Capitalist Approach to Compensation.