Resilience Remuneration Moderator (RRM)
Business Challenge
Leading-edge organisations use performance management to translate their strategy into action and thereby drive organisational improvement. In other words, they use performance management for managing their organisations and bringing about positive change in organisational culture, systems and processes. However, performance management processes are ineffective if bonuses and salary increases awarded to employees are not related to team and individual performance levels.
Once an organisation’s and individuals’ performance results become available, the biggest challenge managers face is how to reward performance equitably and with integrity. The subjective rewarding of employees have left many organizations with a situation depicted in the following graphic where under performers are remunerated well in excess of their performing colleagues. The challenge is to start rewarding performers at the expense of under performers.
Value Proposition
The Resilience Remuneration Moderator (RRM) is a strategic compensation tool designed to distribute scarce compensation rands equitably to employees based on their performance.
RRM is an internet-based tool allowing organisations to objectively award bonuses and salary increases to employees. By utilizing market salary survey data, salaries are properly benchmarked and the climate to achieve equity in the organisation’s remuneration practice is created:
Application Features
RRM fills the space between the download of an organisation’s payroll required by line management for salary reviews and the spreadsheet containing the revised salaries and bonuses of employees.
The RRM has been developed locally and is based on the software-as-a-service concept. The application has the following features:
- Internet based
- Developed in .NET 2.0
- Microsoft SQL 2005 database
- Import capabilities from MS Exel / Text file
- Export capabilities to MS Excel / Text file
- Graphic displays of .NET graphs
- Friendly user interface
- Distributes a bonus or salary increase pool amongst employees based on criteria such as individual performance, team performance, scarcity and an infinite number of other criteria
- Market salary trends are determined and serve as a benchmark against which salaries are measured
- Allows an organisation to optimise its investment in performing labour and avoid investing in under-performing labour
- Has the ability to view data across many different cross-sections of the company (i.e. race, gender, departments, performance categories, etc.) to ensure equity and integrity of the applied remuneration and/or bonus strategy
- Allow what-if scenarios to be created
- Allows for collective bargaining increases as well as other socially related adjustments
- Once the increases have been authorised by management, the payroll is updated with a click of the button