Understanding How to Pay for Performance

July 14, 2020

The GrowthLab Weekly Jump is an information session hosted every Monday that tackles relevant issues in today’s trying times. Jumpstart your week with practical advice in times of uncertainty.

In case you missed this week’s Jump session, you can find the slide deck & recording below:

This week’s focus is:

  1. GrowthLab Four Deep Dive #4: Understanding How to Pay for Performance
    • Understand: Aligning employee efforts with company goals
    • Design: Systems, data, dashboards, communication
    • Implement: Rigor and cadence creates employee confidence 
    • Measure:”You can’t manage what you don’t measure.”
  2. Open discussion on PPP Loan Forgiveness Application Process

Understanding How to Pay for Performance

Understand

  • Employees provide value. You provide paychecks.
  • Know what you want from each employee (better quality product, customer acquisition,
    customer retention, etc.) so you know how to incentivise them

Design

  • Align employee compensation with the company goals; use company KPIs
  • Create relevant metrics for the employee roles

Implement

  • Process for data collection, compilation, presentation and communication should be seamless
  • Understand the company culture & know your employees
  • Start with key employees – What do they want?, What do I want?… How do I combine the two?

Measure

  • Measure & give employees visibility regularly for peak performance
  • Simplify. Design your general ledger / COA so that it’s easy to measure the metrics you’re incentivizing & compensating your employees on.

Understanding how to pay for performance is very important. Start by revisiting the JumpStart actions. Get to know the GrowthLab Four, digest each of the four, and determine your weak points. 

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Tizra

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The Purple Carrot

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Andy Levitt, Founder & CEO at Purple Carrot

FluidSense

“GrowthLab is a tremendous partner for FluidSense. Allowing our core team to focus on engagement and development, while GrowthLab focuses on the financial and bookkeeping aspects.”

Jeff Poole , COO at Fluid Sense

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