How to reduce your people leaving
Why the turnover?
A company experiencing high employee turnover contacted Commonwealth HR Consulting (CHRC). Exit interviews suggested that people were leaving for higher compensation, but was this the real reason?
Connecting the dots of performance and pay
Commonwealth HR Consulting (CHRC) analyzed five years of compensation and financial data to determine if pay had correlated the company’s financial results. We discussed that there was little relationship between employee performance and the company’s results, in either base salary or bonus pay. Through market analysis we gleaned that high performers could expect to make substantially more than their peers in the broader market.
Recognizing strongest contributors To reduce the turnover and improve retention, we redesigned their incentive approach:
- CHRC modeled incentive plans against prior years’ results to reveal how different approaches could have paid out historically.
- This helped the client understand which plan was the best fit for their industry, company, and culture.
- It illustrated that differentiated pay for high performers would have been more in line with packages that “A” players were being offered at other companies.
- CHRC designed the incentive plan and provided the client with the tools to model and calculate payouts tied to the value created by outstanding employees.