Linking Pay to Performance: Increasing Employee Engagement and Organizational Performance



Katherine Mehr
05/27/2009

People who feel recognized demonstrate a stronger desire to help the company grow and succeed.

Therefore, having a pay for performance or incentive program worked into your organizational structure could leverage employee engagement and overall organizational performance.

Transtec Group, a civil engineering firm that designs runways and highways, bases their incentives and bonus program on three specific categories: quality, efficiency and creativity. These categories were created based on the qualities that are most important on an individual and organizational level, both by managers and employees.

Dan Rozycki, president of Transtec, stresses that employees should be involved in company processes because it allows them to think like business owners, which most business owners want their employees to feel like. Employees who feel like owners have a hand in suggesting incentives, participating in high-level decisions and setting company-wide goals.



However, before an incentive or rewards program is implemented into an organizational structure, the organization’s core purpose must be defined. Leaders must establish the goals, align the rewards to meet the organizational needs and make sure the incentive programs are practical and achievable by the employees.

Rozycki shares with Human Resources iQ how he created and implemented a pay for performance structure that is realistic, achievable and valued by employees—ultimately helping in the succession of the organization at large.

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