People management involves numerous variables, starting with the profile of each team member. In a globalized world, organizational changes are increasingly necessary to keep up with the dynamism of the market. In a globalized world, where constant change is part of the corporate culture, the structure of corporations needs to be more flexible every day.
In recent years, the BonusStrategic remuneration, which relates salaries to results, has gained notoriety and relevance in the corporate world. In order to define strategic remuneration, it is necessary to believe that people are the company's main assets, and that there must be a policy of recognition bonus. This bonus can be linked to remuneration, prizes, profit sharing or gaining hierarchical positions. Receive according to the delivery of results, thanks to the professional meritThis is what meritocracy (from the Latin mereo, to deserve, to obtain).
In a democratic and just society, theoretically, opportunities are the same for everyone. However, what differentiates and attributes social value to individuals is their performance them. In the pursuit of economic growth and development, companies are beginning to see people more as strategic players in increasing competitive advantage by generating brand value. When individual plans are in line with the company's plans, variable remuneration is a powerful motivational factor for performance improvement of employees. Meritocracy itself encourages the congruence of goals between company and employee.
Read also: 07 reasons to apply strategic remuneration in your business
Before adopting meritocracy, a company must consider the historical and cultural concepts in which it operates. The concept of merit varies greatly from place to place. Something that is considered valuable in one place may have no value in another.
How does variable remuneration help the company develop?
The company that adopts meritocracy links its management to the establishment of targets and metrics. Goals are related to numbers, and metrics to criteria that will guarantee the quality of your products/services.
If managers take care to maintain a healthy competitiveness, linked only to results, people tend to work as a team to achieve their goals more effectively.
The relationship between employee and company becomes more transparent and empty promises are eliminated from any combination. It becomes clear what the company expects from its employees and what they must do to be recognized.
This recognition retain talentThey will be able to make future plans that were previously uncertain. It's always good to remember that, over time, the strategic remuneration is no longer the only factor for staying with the company, and that quality of life and the organizational climate are now fundamental in employees' decisions.
