Pay-for-Performance and Merit-Pay Masterclass

Managing Pay-for-Performance through Merit-Pay Increases as part of the Overall Annual Pay Review Process in order to Motivate your Top-Performing Employees and Drive Performance

1 day in-person class or 2 half-day online sessions

Offered in-person & online

Accredited by HRD Future & Course Facilitator

Course Introduction

With many markets in the region gearing up for continued post-recession business growth, many employers are facing a challenge of aligning compensation and benefits practices with business strategies, and the challenge of implementing advanced compensation techniques that improve the relationship between compensation and employee performance and business results.  Potentially uncontrolled business growth poses a new set of risks and challenges that rewards professionals have to plan and prepare for to avoid the pitfalls of pre-recession practices.

Course Objectives

This course will provide you with detailed guidance and information to help you implement your basic salary pay ranges effectively by implementing annual pay reviews and awarding merit pay increases as part of your overall approach for managing pay-for-performance, which will assist the company to attract and retain employees in an increasingly competitive pay market, and to reward employees for their contribution and performance.  This course will explain how to manage performance ratings and how to analyse the distribution curve of performance ratings, and if necessary how to use the new approach of “snap-ratio” to manage a forced distribution curve of performance ratings.  This course will explain in practical detail how to link pay with performance, especially through the annual pay review process and using merit-pay awards.

Most employers want to ensure that they can “attract, retain and motivate” the best employees and teams, and this one half-day course will cover the key areas in the overall compensation and benefits package that are linked to the performance of the employee, to enable employers to compete more effectively in the war for talent whilst achieving cost-effectiveness for the employer.

Course Methodology

You will be provided with the information you need to manage your annual pay review process, and implement merit pay increases to move employees up through your salary ranges.  You will have an opportunity to test various ideas and to establish what may work for you. You will also be given access to various tools and techniques, as well as data on the latest global trends and developments.

Course Facilitator

  • Global Remuneration Expert
  • Over 30 years of experience in HR and C&B
  • Global Guru #500 List
  • Global HR Leadership Award

Key Benefits of Attending

Increase your business performance and employee effectiveness through implementing annual pay reviews and merit pay increases that will reward employees for their performance and help you to attract, retain and motivate your top-performing employees.

Discover practical steps for implementing a range of compensation techniques that link reward to performance, including merit-pay and managing annual pay reviews and develop solutions based upon practical case studies and interactive discussions about best-practices.

Support business effectiveness by implementing a best-practice annual pay review process that includes merit-pay to reward employees for their performance by linking the employee performance appraisal rating to reward through pay-for-performance.

Opportunities for networking in the breaks with your fellow course delegates and course tutor to discuss practical issues that will help you in your workplace.

Who Should Attend?

This course is designed for everyone who requires an appreciation or an in-depth knowledge of annual pay review processes including merit-pay and pay-for-performance.  This includes anyone who needs to be involved in pay reviews and merit-awards, including all employees in HR at all levels  of VPs/Directors/Managers/Specialists/Analysts/Generalists, and this course is designed for the all of the following participants:

  • All managers and professionals and specialist who work in any area of HR.
  • All specialists in HR who work in Compensation and Remuneration and Rewards.
  • All specialists in HR who work in Performance Management and Performance Appraisals.
  • All managers from any functional area that need to know about pay reviews and merit-pay


This course is designed as an “intermediate and advanced” course in compensation, and delegates should have either already attended the elementary foundation course on “Managing Compensation and Salary Structures” training course conducted by Robert Mosley, or they should already have practical knowledge and working experience of working with the main “fundamentals” of managing compensation including knowledge about Pay Strategy, Grade Structures, Designing Payscales and Salary Structures, Calculating Compa-Ratios, and simple Payscale Formulae (such as the single-step approach of 80%-120% for min-max pay ranges).

Case Studies and Course Outline

You will work on the main approaches for annual pay reviews including merit-pay and pay-for-performance, and the course will include various practical case studies designed around various leading global and local companies, including the following:

  • The “Golden Triangle” of Managing Reward and the impact of on motivation and retention
  • Key features of performance management and appraisal systems if C&B is to be successful
  • Learn how to balance short-term financial constraints with long-term retention imperatives
  • Learn how to adopt traditional pay review plans to be more selective on pay-for-performance
  • Explore the compensation tools that can be used to retain and motivate top-performers
  • Learn how to manage the costs of the annual pay reviews whilst rewarding top-performers

Detailed Agenda

Session 1a:  Performance Management and The Goal of Linking Pay To Performance

  • The golden triangle of Reward Management (jobs, people and performance, and pay markets)
  • The role of grading structures and salary structures in reward management
  • The role of performance management and performance appraisals to develop employee ratings
  • What motivates and retains an employee?

Session 1b:  Next Generation Performance Management:

  • Latest trends in “Agile Performance Management” and “Next-Generation PM”
  • Modern trends on annual appraisal meetings and monthly informal 1:1 discussions
  • Next Generation Performance Management: The Death of Performance Appraisals
  • What is happening to KRAs and annual KPIs?
  • Say Goodbye to KPIs and Say Hello to MSCs
  • How does continual assessment of objectives (monthly milestones) work?
  • The balancing act of objectives/KPIs and competencies/behaviours in the appraisal ratings

Session 1c:  Managing Performance Ratings and Performance Distribution Curves:

  • Current best-practice approaches to performance appraisal rating scales
  • How many points should you have in your performance appraisal rating scale
  • What words should you use to describe each appraisal rating point
  • Using forced distribution curves of appraisal ratings
  • Do we still have the “bell curve” and what happens to forced distributions of ratings?
  • The pros and cons of the “bell curve”
  • Understanding and managing the “snap-ratio” of the distribution curve
  • Performance ratings and the distribution curve of ratings and using “snap-ratio”
  • Adjusting the distribution curve of employee ratings to reflect company results
  • Knowing when managers have been too generous or too mean with their appraisal ratings
  • Practical solutions for managing a forced distribution curve of appraisal ratings

Session 2a: Managing the Annual Merit-Pay Review Process and Linking Pay with Performance:

  • Conducting and managing the annual pay review process (both fixed-pay and merit-pay)
  • Linking merit-pay and annual pay reviews to individual employee performance
  • Rewarding performance within basic salary increases and merit pay reviews
  • Rainbow curves to manage compensation and pay-for-performance and using a merit-matrix
  • Linking merit-pay to individual performance
  • Conducting and managing the annual pay review process
  • Balancing the annual pay review budget and calibrating manager ratings and merit increases
  • The optimal timetable to use pay to support performance management

Session 2b: Knowing if Employees are Correctly Paid

  • Managing an annual pay review process and managing progression through a pay range
  • Managing compa-ratios and using compa-ratio progression guidelines

What Others Say About This Course

“Very, very good course. Excellent instructor. Thank you, Robert. This course really put C&B in perspective for me."
“Robert, you’re the best. Excellent concept, approach and methodology! Very informative and well coordinated. Very practical in Malaysia.”
“What a workshop, a great speaker with good delivery skills that make attendees understand everything crystal clear.”
“Robert has excellent practical experience and provided several examples while addressing course objectives and answering our questions. I will now start designing the grading system andsalary scales in my organisation.”

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