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How to Best Tie Compensation to Accountability In The Workplace

The concept of tying compensation to accountability seems simple enough on the surface. However, making it real is way harder than it looks. And the biggest challenge is deciding what to measure performance against.

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Effective Compensation Models Require Well Defined Performance Measurement Frameworks

Putting in place a sound performance, accountability, and compensation framework that drives the right behaviors, and that supports the strategy of the business, must start with a sound foundation.

The following 6 elements, if done right, will provide all you need to successfully develop a system that ties compensation to accountability in the workplace:

1. Business Strategy and Plan

A business strategy that outlines where things are going, and the strategies and tactics that will be used to get there, will provide the overall context. Once the entire organization understands how they fit in the overall scheme of things and how to best contribute to its success, energy can then be directed in the right direction.

2. Organization Structure

A well-structured organization is functionally-driven in its span (e.g., logistics, operations, purchasing) and structurally sound in its depth (e.g., manager, vice president). A clear organization structure provides the team a view on how things fit together, how value is added, and how cross-functional processes work. Teams can then visualize potential career paths and areas of leverage to better maximize individual contributions.

3. Expectations Framework

An expectations framework for each functional area, by competency (e.g., analytical skills, leadership skills, client relationships, project management) and by level (e.g., manager, supervisor, staff) is critical to be able to drive team development and growth in the direction the business needs to support its strategic goals.

An expectations framework is also a key component to be able to evaluate performance against and to define compensation drivers.

4. Accountability Tracking

Accountability is what brings everything together in a High-Performance Organization (HPO). Without a culture of accountability, all of these efforts will go to waste. Accountability relies on alignment and buy-in, clear communications, empowerment, leadership, and more importantly, measuring.

Understanding milestone completion performance at the individual and team levels, and tying this back to a performance review and incentive system, directly drives accountability.

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Furthermore, using a task management and accountability tool like CommandHound makes milestone completion tracking at the individual level simple. Once embedded into the culture and operating environment of a business, CommandHound becomes the key enabler of accountability in the workplace.

5. Performance Review Process

A good performance review process is clear, well structured, measurable, and understandable by all. Gauging individual performance against a well-defined and communicated expectations framework, and a milestone completion tracking system like CommandHound, will drive business performance.

Deciding whether somebody meets, exceeds or is below specific expectations and performance metrics is a lot easier than having to make up a review from scratch against an unknown set of expectations every year.

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6. Compensation and Incentive Model

Finally, after all the 5 previous elements are in place and clearly understood, an effective compensation and incentive model can be developed. This model will be directly driven by a performance review process and accountability tracking system that support the business strategy. Only then can we ensure that compensation becomes a strategic enabler that attracts and rewards the best talent.

Next Steps

Effectively and clearly tying compensation to accountability in the workplace is not easy. However, the road is straight forward and very doable.

Would you like to learn more about how CommandHound can help you develop a comprehensive compensation and incentive framework with accountability at its core?

Request a demo and begin the transformation process towards a high-performance organization.

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