Today’s economy is volatile, to put it mildly. Even established and formerly-profitable businesses are finding themselves in financial hardship. Many companies are being forced into bankruptcy.

If you have been injured on the job, you already have enough to worry about. Unfortunately, if you were injured while working for one of these struggling companies, you may now be concerned about the effect that your company’s financial challenges will have on your workers’ compensation benefits.

Does the Company’s Bankruptcy Affect Work Comp Benefits?

One common concern among workers is that a bankruptcy filing may put an end to workers’ compensation benefits. For many injured workers, workers’ comp provides money desperately needed to cover medical expenses and monthly bills until the employee can return to work.

Generally speaking, a bankruptcy filing should not affect your receipt of work comp payments. The payments you receive are actually coming from your employer’s workers’ compensation insurance provider, not the company itself. Provided your employer was current on the insurance premiums at the time of the bankruptcy filing, your benefit amounts and the payment schedule will not change; the company’s financial strains are irrelevant. Even if your employer had let the worker’s compensation insurance lapse, you may have other sources of benefits, and your employer will likely face hefty civil fines and criminal sanctions.

If I am Laid Off, Will My Workers’ Compensation Payments Stop?

Another unfortunate side effect of the recent economic downturn is that companies are laying off workers in record numbers in an attempt to cut costs. If you are out of work due to an on-the-job injury at the time you are laid off though, your benefits should not change.

Likewise, if you had returned to work but are under medically-recommended physical restrictions, your benefits should not be affected. If the payments have changed for some reason following a layoff, you may need to petition the court for reinstatement of lost wage benefits.

Even if you are currently working with no medical restrictions following an injury and are laid off, you may still be eligible for workers’ compensation benefits. If you are not on restrictions but are receiving benefits at the time of layoffs, the workers’ compensation insurance carrier must continue to pay reasonable and necessary medical expenses related to your work injury.

If you are placed on restrictions that would prevent you from returning to your regular job, even after a layoff, you may be able to file for lost wage benefits. For example, if you have surgery for a work-related injury after you are laid off, you will likely be unable to work as you recover. Accordingly, you can file a reinstatement petition to obtain benefits during this time.

If you have been injured on the job, it is vital that you inform your employer to document the incident, even if you think the injury is not serious. If left untreated, even seemingly minor injuries may result in permanent disability. Reporting an injury is particularly important if you have reason to suspect that you may be laid off. Should you file an injury report after a layoff, the claim will likely be rejected; it could appear that you are only seeking benefits in retaliation.

Any work-related injury can be stressful. The added strain of wondering if your employer’s bankruptcy filing or being laid off will affect on your workers’ compensation benefits can make your recovery even harder. Fortunately, workers’ compensation laws incorporate strong protections for injured workers, even when company’s face difficult financial times.

These are complicated issues, and it important to ensure that you are taking the proper steps to protect your rights and interests. Speak with a workers’ compensation attorney to discuss your personal situation and ensure that your interests are protected.

Reference: Krasno Krasno & Onwudinjo

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[tags]findlaw, 24-7pressrelease[/tags]

In this fluctuating and uncertain era of economic instability, many people are scrambling for jobs and scraping together the money they can to keep their bills paid. When economic development is mentioned, it’s often referred to in terms of entire countries and most people will imagine building industries, production, and income.

Economic development is more than buildings and jobs; it also includes things such as education, environmental quality, freedom, quality of life, and social justices. The factors that make the entire country grow, including the welfare of its people and environment.

In terms of what is occurring in the U.S. right now, with millions and millions of people losing their jobs, homes, and quality of life, what does economic development have to do with it? Are there places in the country that aren’t being heavily affected by the current state of instability?

Forward-Thinking Economic Development

Many communities and cities have their own economic developers to promote all the aspects that are relevant for stable growth and community security. Depending on how good these developers have been, certain cities are staying afloat during these times of crisis. These communities have secured major businesses to settle in their areas and put emphasis on the other factors that create a stable environment.

For instance, if one company is struggling, there are others nearby that aren’t. If education has taken a front row seat in a community’s development, then its people are having better luck finding and keeping their jobs. If the community has been thinking progressively, then it has found ways to lessen its environmental impact and reduce the cost of living for its people.

The U.S. has certainly taken a hit in terms of economics, but many of the criteria for economic development are securely in place, such as social justices, freedom, and quality of life. They aren’t perfect, but they are relatively light years away from other countries.

Though the direction of the country seems to veering out of control because of all the outsourcing and industrial movement to countries that require less money for operations, there are still many aspects that will keep the country on track in terms of economic development.

These are the current models of communities that seem to be unaffected overall by the instability of other communities. Keeping it all on track may ultimately depend on the communities that have planned ahead and have used progressive means to provide security and stability for its citizens.

DCNC - Harlingen EDC (http://www.harlingenedc.com/) is to assist in the creation of new job opportunities and the attraction of new investment to Harlingen.

[tags]Harlingen TX, Harlingen Texas, Texas economic development[/tags]

Every now and then, you might ask yourself what things you can do to streamline some of the operations of your business. Whether this means cutting back on some of the things that you do personally or simply finding a job in the office that can be outsourced to cut costs and reduce the time consumption of your employees, you are probably unsure where to start looking or what departments to select.

One of the most common ways that small and medium business owners are able to free up some of their own time though is by hiring an outside Payroll Bureau. The reason is simple. Most small business owners only have 5-10 employees at the most. However, it can take up to 15 or 20 hours a week to manage and sort through payroll paperwork for those employees, especially if you do not know what you are doing. However, a payroll bureau is practiced and skilled at handling your payroll, and for such a small business usually offers a great rate.

What You’ll Get

From a payroll bureau, you don’t just get a little extra time back; you get the peace of mind knowing that your payroll is being done properly without any snafus or problems that might crop up if you tried to stumble through it on your own. For example, you will get:
- Assurance that payments are made on time - You may try hard, but what if you have something come up the day before payday. Can your employees afford for you not to have their checks ready?

- The Expertise of a Payroll Bureau - Payroll Bureaus are skilled and practiced at what they do. They know all the tax laws, keep up to date with any changes and keep meticulous records.

- Your Own Sets of Records - A good Payroll Bureau will provide regular updates of records for you that ensure you always have important financial information on hand if anyone needs.

- Streamlined Paperwork and Tax Prep - It’s a time consuming process and often times nerve racking to try and figure out the taxes and paperwork of your employees on your own. So, having a company that can do it with experience and a set process saves you a lot of worry.

Ultimately, as you can see, a payroll bureau ensures that everything gets taken care of as it should be - on time, in good order and with the right rules in mind.

If you’re looking for a way to cut back some expenses and save a little time in your schedule or the schedule of someone that works for you, one of the best ways available is to hire a payroll bureau that can effectively track hours and payments, write checks, provide paperwork, and keep detailed, organized records for the future. All of these things are well worth the small fees they charge and if you consider how much of your own time they will save, it’s beyond being worth it.

Michael Kelly is a managing director of Irish Payroll. Irish Payroll provides comprehensive payroll bureau services to small and medium sized businesses throughout multiple countries.

[tags]Payroll bureau, help with payroll, payroll services, employee payments[/tags]

Job satisfaction is one of the most important aspects of employment. Many people report that they are more likely to stay at a job if the management makes them feel valued. Everyone needs to feel appreciated in the work place and employee discount programs can go a long way toward making employees feel as if they’re needed.

Employee incentive rewards don’t need cost a lot of money to greatly add to an employee’s job satisfaction. Three possible employee incentive programs are discounts on entertainment like visits to Florida or New Jersey attractions, health and wellness services, and travel.

Discounted Fun With Attractions Tickets

When it’s time for fun, your employees have lots of options. Consider striking a deal with popular places like Universal Studios in Florida or New Jersey attractions along the shore. It’s possible for the company to purchase the tickets to these attractions and resell them to employees or simply give employees a web address set up by the entertainment site.

When looking into discounted fun and entertainment for your employees, also ask about an employee appreciation day. Take a day off work and encourage employees to participate in a fun day at one of these fun Florida or New Jersey attractions-or attractions in your local area. This team outing will bring your employees closer and work towards workplace harmony, which is important when everyone in your office is overworked and stressed.

Health And Wellness Discounts

Aside from being a nice perk for employees, offering a health and wellness discount has benefits for employers too. The most common type of these discount programs are reduced price gym memberships. Businesses can often negotiate discounts for massages, nutritionists and other health related services. Companies may also find that they qualify for reduced cost group health insurance if it can show that a certain number of employees actively use a gym membership, which makes it a win-win situation for everyone.

Discounted Travel

If your company has used a travel agency to book discounted corporate travel, consider offering this service to employees for their personal travel. Employees will be able to book discounted airline tickets, rental cars and hotels using this service. It won’t cost your company much, if anything, and will likely drive down the price of corporate travel since your company will be bringing the agency more business.

Providing employee discounts on health and wellness services, fun and entertainment for places like Florida or New Jersey attractions and travel is an easy way to show employees that they’re appreciated and valued.

Dakota Bressler is an avid traveler and writes for Morey’s Piers, a group of waterparks and amusement park rides in Wildwood, New Jersey. The area has many New Jersey attractions so visitors can have a memorable vacation.

[tags]New Jersey attractions[/tags]

Most people who have had a job or are currently employed have heard of worker’s compensation insurance. People you may even know may have received, or still be receiving worker’s compensation benefits from their employer. Many employees don’t know much about the worker’s compensation insurance that their employer provides, and this can often lead to bigger issues if that employee is hurt on the job.

Generally, employees feel safe knowing they have benefits if they get hurt at work but accepting your employer’s worker’s compensation insurance without understanding it first may not always be the best choice for everyone. There are many pros and cons to accepting worker’s compensation insurance and sometimes when you don’t understand how this insurance works you may be missing out on some of its potential benefits.

In most cases accepting your employer’s worker’s compensation insurance is the best choice, but without reading their policy and understanding a little about the law it is difficult to say. Since your employer does not want you to sue them and they generally have your best interests in mind, they will do their best to help you get healthy again and to prevent another similar incident from happening to you or anyone else. Unfortunately since every situation and injury is unique, the best way to know if you should accept your employer’s worker’s compensation insurance is to contact an injury lawyer. Contacting an injury lawyer could be the difference in being able to pay your medical bills and household bills or just barely getting by. This is extremely important if you have a life threatening injury or were injured in a way that could lead to a permanent disability.

There are several great websites that provide information about workers compensation insurance and the law, but always remember to seek the advice of a professional if you are confused about your rights. Workers compensation insurance can be a life saver when it comes to paying medical bills and prescriptions but if medical care suddenly skyrockets for an unknown reason such as a misdiagnosis, by accepting your employers workers compensation insurance you have forfeited your right to sue your employer.

With anything, read the fine print and ask plenty of questions. It could mean the difference of thousands of dollars in the long run. When in doubt call an injury lawyer for clarification about your specific case. Only a trained professional will be able to tell you with absolute certainty if it is best for your situation.

Stewart Baker writes for PinnacleOutsourcing.com Let the leaders in the nation provide Illinois workers comp insurance to protect your business & your employees from construction related injuries. They are a PEO broker specializing in this industry and offer affordable Georgia workmens comp for businesses.

[tags]workers comp insurance,workman comp,workers compensation insurance,workers comp,workmens comp[/tags]

Human Resource certifications do not mean just a set of letters after your name. Although you can add the PHR or SPHR letters after your name after you pass the exam. There are many responsibilities that come along with this certification including employee relations and factors involving compensation. Remember that for the exam the questions will focus on your daily activities you perform during human resource functions.

Requirements before you take the exam include a minimum of 2 years experience as a human resource professional. The exams contain a total of 225 computer administered questions with multiple choice settings. The passing score is confusing for some because it is based on a scaled score between 500 and 700, with 500 being the minimum and 700 the maximum. Unfortunately there are not a lot of choices for individuals to use to prepare for the exam. A set of books exist and are sold by the Society for Human Resources management and many universities offer expensive programs designed to help you pass.
Once you understand these strategic points, it becomes easier to connect them to structures and roles in the firm.

To use talent to obtain a strategic advantage, determine how your talent pools link to these structures and roles. Align the different management systems in the firm (this will require making organizational boundaries more effective), and determine where adding more staff or higher caliber people will do the most good. The organizations design can enhance the value chain. However, the value chain can slip away from the firm. IBM outsourced the first PC processors to Intel and the operating system to Microsoft. It is no coincidence that IBM does not make PCs any more.

Identify the key strategic resources. Make sure that the organization supports them efficiently, so they generate the maximum possible value. Part of this value-supporting process is recognizing the constraints on talent, and either eliminating or creatively managing those constraints before they become potential crisis points.

If a position is sensitive to a difference in performance, the natural response is to look for a higher quality person to fill that slot. Another approach is to restructure the position so that the differences between the caliber of people matter much less because they will all perform the job in the same way. This standardization maintains quality; it removes the variation from a role to reduce the risk. McDonalds now takes drive-through orders by using shared, remote order takers, thus making the job less pivotal.

In contrast, order taking is a key part of the Starbucks Experience. Each barista is carefully selected and trained exhaustively, because the job calls for providing each customer with a special event. Baristas must learn the names of regular patrons, help customers connect to Starbucks Wifi network and master the stores complex array of drinks.

The Starbucks network of trust begins with customers trusting that their experience will be exceptional. Starbucks trusts its employees to deliver that experience, and employees trust Starbucks because of the way the companies culture reinforces and
proves its dependability and trustworthiness.

sphr offer to help you pass the PHR and SPHR exam on your first try. http://www.phrsphrtraining.com

Jacquelyn Donner, SPHR

To forego concerns about labor overtime, overtime claims, wage claims and to insure employee performance businesses often implement creative commission structures designed to benefit the motivated employee and the employer. California overtime and compensation laws are generally very protective of workers and the legal system for the most part protects workers against creative commission schemes.

In one such creative commission structure the employer attempted to circumvent the law by not paying commissions after the employee left, even if the commission was really earned by the former employee. In an environment of high employee turnover, which is often the case with sales persons, such a plan made perfect sense for the employer. Fortunately for the employer the plan was turned down by the California Division of Labor Standards Enforcement and the employer did not have to worry about future wage claims.

The employer sought an opinion letter before proceeding with the plan. In the plan it described a compensation system that included quarterly payouts of commissions on sales. The program also required current employment at the time of the quarterly commission payout. If the employee was not working at the time of the quarterly payment then no payment was due.

The Division of Labor Standard Enforcement advised that commissions on sales are waged calculated and owed upon the completion of the sale and must be paid in accordance with California Labor Law. Under California law wages earned are due and must be paid twice during each month on days designated in advance by the employer. Such a plan was deemed to be unacceptable as it was not compliant with existing law. Even if the plan did not provide for forfeiture of commissions it would still not be compliant, because it did not provide for payment of wages twice a week.

A labor attorney knowledgeable about labor laws is often very instrumental in helping a business stay out of trouble. A labor attorney is likewise very instrumental in helping an employee with wages and overtime lawsuits.

In this such case it was fortunate the employer was advised to seek such an opinion before attempting to implement the plan. Otherwise a workers attorney would eventually have picked up as a good wage claim to litigate.

In the opinion issued there was a reference to case where it was determined to not pay commissions where the orders were cancelled. That case was distinguished on the grounds that it was not unreasonable because of the period of time and the fact that no sale had actually occurred if there was a cancellation. The DLSE further added that this plan did not provide for a salary to be drawn against future commissions. The DSLE opinion letter stated that it is sometimes permissible to require that the contract upon which the commissions are based is not complete until payment of the contract price to the employer.

The DLSE conclude by summarizing as follows:

To summarize then, we would first point out that commissions
earned on a sale must be paid within the pay period pursuant to
the provisions of Labor Code Section 204. Withholding payment of
earned commissions until the end of a three-month period would be
a violation of California’s Labor Code. Additionally, any earned
commissions may not be forfeited. As pointed out above, reasonable
conditions may be placed on the vesting of the commissions; but once
vested, the commissions may not be forfeited as a result of the fact
that the employee terminates the employment. We might also point
out that common law contract doctrines (prevention) would prevent
an employer from forfeiting commissions which would have been
earned by discharging the employee before those commissions vest.

Generally speaking if there is some sort of unfairness to the compensation plan it will eventually result a workers attorney filing an overtime claim or some sort of labor law attorney filing a wage claim or labor law violation claim. The sure way to invited a workers attorney to file a claim for unpaid wages is to implement an inherently unfair compensation plan.

Learn About your Employment Rights At
California Overtime

[tags]labor overtime, california overtime, commissions[/tags]

Overtime, straight time and other compensation for entering a trainee programs is often an area of litigation. Training is often an area of litigation where overtime claims are filed to demand not only payment for overtime, but for straight time when wages are not paid, because the rules are often misinterpreted.

Overtime lawsuits arise when individuals feel their overtime rights have been violated, and sometimes they arise when trainees are unhappy because of training hours in excess of 8 hours per day. In many instances payment of wages is not required when the prospective employee is undergoing training. It depends on the specific circumstances of each individual case, but it is usually a matter of determining if the training is for the benefit of the employer or the trainee. One particular area where training is required under California Law is in the private security guard industry.

In a recent opinion letter the California Division of Labor Standards Enforcement determined that no wages were due when training security officers for private security companies under new laws that purport to regulate the industry. The opinion was cautious and tends to suggest that even though it can be used as guidance it should not mean to be interpreted as applying to all situations.

The opinion of the labor commissioner is that the time in the pre-employment training program does not require wage compensation under the facts presented in your letter. The letter focused on the required security officer training in order to be a registered security officer and not the licensing of a private operator. In rendering it is opinion the Division of Labor Standards Enforcement relied on a test it regularly uses to evaluate training programs and determine whether individuals are exempt from minimum wage requirements as trainees.

In this specific case the training was provided at no cost, but it did promise or guarantee employment, but it was required before any employment would be offered. The prospective employee had to also comply with other company hiring requirements.

The Divison of Labor Standards Enforcement also noted that no work was required as part of the training. No work was performed directly or indirectly in the participation for the private security operators. The participant’s training is for their own advantage and at not cost, which happens to be a requirement under federal and state laws that pertain to hiring interns without pay. The fact that an offer of employment could follow upon completion of the training program was determined to be insufficient to establish and employer employee relationship.

The Divison of Labor Standards Enforcement was satisfied that there was no employment relationship and therefore the trainee would not be entitled to overtime pay, straight pay, or any benefits. The DLSE also emphasized that a different result could ensue if there are assignments to work for, or individuals are allowed to work on behalf of, the training private security operator, because the trainee would be engaged, suffered, or permitted to work by the operator.

The focus is therefore on whether or not the employee is engaged in activities that could be construed as work done on behalf of the operator providing the training or if the training is for the benefit of the operator and not the trainee.

Learn About your Rights At
Labor Overtime

[tags]labor overtime, trainees, pay, training[/tags]

Some of the highest paid employees in the country relative to their skill, education and knowledge are service workers that regularly receive tips. Dancers, waiters, waitresses, and bartenders often earn more than professionals including nurses and lawyers. It is not uncommon for a bartender to earn $80,000 a year or a dancer to earn $200,000 a year.

Often this leads to business managers and owners to take tip income from these workers and redistribute it or pocket it, or as a basis to set up a compensation system that does not comply with the labor code. Some employers pool tip income and distribute to all employees, some distribute on the basis of categories of jobs, and some include all employees. Some employers may attempt to use tip income in determining if the employee is getting paid minimum wage.

California law regulates gratuity and income and specifies what type of actions are prohibited. The California Division of Labor Standards Enforcement defines the term “gratuity”as follows. “Gratuity” includes any tip, gratuity, money, or part thereof, which has been paid or given to or left for an employee by a patron of a business over and above the actual amount due such business for services rendered or for goods, food, drink, or articles sold or served to such patron. Any amounts paid directly by a patron to a dancer employed by an employer subject to Industrial Welfare Commission Order No. 5 or 10 shall be deemed a gratuity. It defines the term “Business” as meaning any business establishment, or enterprise, regardless of where conducted.

The courts consistently have held that they will defer to the regulations established by such agencies as the Division of Labor Standards Enforcement and therefore the regulations are substantially law. Occasionally the court will reverse a DLSE order, but that is very rare.

The DLSE specifically states that:
No employer or agent shall collect, take, or receive any gratuity or a part thereof, that is paid, given to or left for an employee by a patron, or deduct any amount from wages due an employee on account of a gratuity, or require an employee to credit the amount, or any part thereof, of a gratuity against and as a part of the wages due the employee from the employer. Every gratuity is hereby declared to be the sole property of the employee or employees to whom it was paid, given, or left for. An employer that permits patrons to pay gratuities by credit card shall pay the employees the full amount of the gratuity that the patron indicated on the credit card slip, without any deductions for any credit card payment processing fees or costs that may be charged to the employer by the credit card company. Payment of gratuities made by patrons using credit cards shall be made to the employees not later than the next regular payday following the date the patron authorized the credit card payment.

The DLSE and the Labor Code specifically prohibit employers and their agents from taking, sharing, or receiving tip money left for employees. The term agent has been defined as every person other than the employer having the authority to hire or discharge any employee or supervise, direct, or control the acts of employees.

Tip pooling policies where waiters, waitresses, busboys, and bartenders share in the tips is deemed to be legal, because it is a long-standing practice in the restaurant industry. This was the opinion in the case of Leighton v. Old Heidelberg, Ltd., 219 Cal.App.3d 1062 (1990), but it was a split decision and may change in the future if appealed in a different district, but for now it is the law.

The DLSE also issued and opinion letter in 2005 , where it interpreted Labor Code section 351 to allow for a tip pool policy requiring the employee receiving the tip to contribute 15% of the actual tips to the tip pool and all money from the tip pool then to be distributed to the other employees in the “chain of service” based on the number of hours they worked, as is consistent with industry custom, provided:

1) Tip pool participants are limited to those employees who contribute in the
chain of the service bargained for by the patron, pursuant to industry custom
[examples of employees included in “chain of service” provided in Opinion Letter],
and

2) No employer or agent with the authority to hire or discharge any employee
or supervise, direct, or control the acts of employees may collect, take or receive
any part of the gratuities intended for the employee(s) as his or her own.

The DLSE also prohibits employers from making wage deductions from gratuities, or for using gratuities as direct or indirect credits against the employee’s wage and it also specifically disallows a recovery of credit card charges incurred by the employer.

Under federal law and employer can have an employment agreement with the employee that would allow an employer to employ so-called “tip credits” against wages owed to an employee, but the practice is illegal under California law.

California law requires every employer keep accurate records of all gratuities received by him, whether received directly from the employee or indirectly by means of deductions from the wages of the employee or otherwise. Such records shall be open to inspection at all reasonable hours by the DLSE. The employer to keep accurate records of any gratuity received by him through any means including credit cards and because of the requirement the burden of proof regarding amounts due em ployees from credit card charges would be on the employer.
The Court of Appeal held that any cost of doing business must be borne by the employer and not the employee. Inasmuch as credit card purchases are common, the cost of credit card charges are a cost of doing business. Thus this decision had been interpreted by DLSE to prohibit any deduction from the wages of employees by the employer to recover costs incidental to tips left for employees.

Sometimes employers attempt to get around these rules and pocket a large chunk of the tips by categorizing the employee as an independent contractor and renting space to the employee or setting some sort of an arrangement where the employee pays the employer instead or purchases supplies from the employer. The DLSE and the courts have both defined the characteristics of an independent contractor and these arrangements, rarely work, because the employee is an employee and not an independent contractor.

For a North San Diego County lawyer visit the author’s website.
Arnold Hernandez, attorney,overtime, personal injury, truck accident, car accident, dog bite, and wrongful death, Escondido, San Marcos, Vista, Oceanside, Carlsbad, Encinitas

[tags]tip income, laws, tip income and minimum wage, pay for restaurant workers[/tags]

Like the rat in the cage we are driven by rewards. It’s only human and also perhaps rat nature. Suffice it to say it’s nature.

So when compensation, the reward, becomes stagnant so does productivity. If like rats we are paid by the time we spend in the cage, then the expected level of productivity is simple compliance.

By focusing on minimum standards employees tend to get there and stay there; a comfort zone or twilight zone or Bermuda Triangle whatever else it can be called.

That comfort zone is not where you need nor want to be. Did you make a conscious decision to not do what is in the best interests of your company? Why? Don’t you ever ask what does your company need? What is the first step?

If you need to make changes, be wary of copying formulas. The best plan is the one that works best for your unique circumstances. Look first to your industry but also take a look outside your industry when looking for the right compensation plan.

The important thing is to first look for the concepts in compensation that drive your company’s performance and productivity.

Sometimes combinations of plans work the best. Simpler is better but sometimes by combining two measures, such as productivity and attendance; a compensation plan can be enhanced.

The best approach is to identify which key performance indicators should be the foundations for the compensation plan.

If you are going from a ‘time and space’ or hourly wage rate to an incentive plan then look for ways to start that change. There may be a great deal of reluctance on the part of your current employees but ask for their opinion. That way, once the plan is implemented there should be no complaints.

Talk about the new plan in your business, group and team meetings. You might start by using small gifts or cash rewards for top performance which helps employees get accustomed to the idea.

The idea is to try to modify your employee’s behavior little by little so it’s preferable to start small and gradually gain credibility. Actually rats do the same thing.

Use spreadsheets to work out the ranges of possible plans. Be wary of straight commission as it can often create internal friction. Don’t forget to look at tying part of your bonus or incentive plan to overall company performance.

Once you have a plan you can test backwards to see how it would work. Depending on your plan, you can do a trial run and see how employees react. Make certain that poor performance is not rewarded.

Establish a minimum performance level and make it the low end of your compensation scale. Make sure your plan is easily track able by both you and your employees.

Under ideal circumstances top performers should get at least two or three times more than minimal performers. Even if you are not able to create such a variation “skew” the better rewards should go toward top performance.

As with all incentives and bonuses it is important that the prize be something the employee considers of significance. Pure praise is fine but a cash reward or dinner for the family makes it tangible and real. To give someone a paltry bonus is the same as saying it does not matter. If it does not matter, why do it?

It is better to have a low base wage/salary with a large incentive component. If the base is too high there is little incentive to perform at higher levels.

Expect minimal employees to whine, complain and quit after the plan is in place. Expect to see more qualified and motivated employees wanting to join your company. Expect your better employees to become more loyal.

A well designed compensation plan can give your company a strong competitive advantage. Too bad your competitors may find it impossible to compete directly with you for the best employees.

Jack Deal is the owner of Jack D. Deal Business Consulting, Santa Cruz, CA. Related articlesmay be found at http://www.jddeal.com/blog/human_resources and http://www.freeandinquiringmind.typepad.com

[tags]compensation,employment,employee,bonus,incentive,production,productivity,performance,dynamic,driver[/tags]