Pay for Performance:Jason C. Kovac

It is hard to turn on the television, pick up a newspaper or magazine, or power up a computer without seeing a flood of stories on rising unemployment, the credit crisis or bailout packages. These are the signs of a down economy, or specifically, a recession.

This is a cyclical process. Employees are connected with job security, so they are afraid to spend money. Because they don't spend money, organizations aren't turning profits. Because organizations aren't turning profits, some are cutting head counts, which starts the process over again, compounding employees' fears about job security.

However, during economic downturns, not every employee gets trapped in the cycle. Smart organizations will use the downturn to make strategic hires. And they will look for opportunities to recruit key talent from vulnerable competitors.

Performer Hierarchy
Employees are the backbone of any organization. Employees come up with ideas, build and sell products, work directly with internal and external customers and represent the organization. Within organizations, there is a hierarchy of performers: high performers, average performers and poor performers.

In most cases, the high performers are the top producers, the idea generators and potentially the top leaders, though not necessarily managers, in the organization. High performers are the employees who will lead the organization in the future.

These high-performing employees are vital to organizational survival, especially in bad economies. They are also in high demand in the labor pool. In order for organizations to thrive, they need to ensure they are retaining their own "A" players, as well as attracting new ones to keep the talent pipeline full. This push/pull of labor ignites a war for talent at a time when recruiting would seem to have fallen to the bottom of many talent management priority lists.

Pay Cuts for Performance?
During down economies, it is vital for organizations to determine which employees are key to organizational survival and ensure those employees are motivated to stay. One of the strongest motivators for attraction and retention is compensation. Unfortunately, during economic downturns, organizations have less revenue and, therefore, decreased pay for performance dollars.

Pay for performance can be defined as the link between pay, in whole or in part, to individual, group or organizational performance. If the individual, group or organization does well, pay increases, and vice versa. As organizations bring in less revenue, the amount they can spend on pay-for-performance dollars diminishes.

Some organizations try to spread the money so that each employee gets some additional pay. This is commonly called the "peanut-butter approach." Spreading the money to all employees, however, can be a de-motivator for high performers, especially when they know other employees have contributed less.

Equal distribution of limited pay-for-performance dollars might seem like a good idea, but the move could backfire. Just as talent managers need to encourage and reward high performers during good times, an organization is especially dependent on top performers to pull the organization through during down times.

For those who are thinking, "Well, worrying about how to best allocate merit increases is a nice problem to have, especially since these days, the reality is more about pay cuts."

Shouldn't the concept of pay for performance apply to salary reductions in the same way they do to salary increases? Instead of simply cutting pay a flat percentage across the board, should HR be more strategic about it by cutting the low performers more than the high performers?

This has become a hot topic at HR watercoolers and opinions on the matter vary widely, but one thing is certain. Pay-for-performance differentiation can send a strong message to employees and, as such, should be used wisely and well.

[About the Author: Jason C. Kovac, CCP, CBP, is a practice leader for WorldatWork and the author of three books including Elements of Base Pay Administration.]

Smart Questions to Ask the Interviewer!!

Many job seekers have been taught that interview success depends solely on their ability to answer the questions put to them in an impressively professional and knowledgeable manner. However, while the answers you offer up will play a big part in determining how you come across in an interview, they're really only one piece of the puzzle. In fact, some job search experts say that the questions that you pose in an interview can be equally important in helping you make a positive first impression.

A Two-Way Street
Although the hiring manager clearly has the upper hand in most interview situations, that doesn't mean that he or she should be the only one asking questions. According to Tony Beshara, author of Acing the Interview: How to Ask and Answer the Questions that Will Get You the Job, the best interviews are more like lively back-and-forth discussions than one-way interrogations.

By preparing and posing a few pointed questions of your own over the course of the interview, you'll be able to accomplish two important tasks. First, you'll highlight your ability to think on your feet, respond to emerging situations, and analyze information quickly. Second, and perhaps most importantly, the right questions will allow you to get a better sense of what it's like to work for the company - and help you figure out if the position is right for you.

What Should You Ask?
The questions you pose to the hiring manager should include queries you have prepared in advance of the interview, as well as follow-ups relating to topics that come up over the course of the discussion itself. Use these tips and techniques to craft questions that will help you succeed in your next interview.

1. Avoid the obvious.
Although you can definitely boost your profile by posing the right kind of questions, not every query will score points. Don't ask questions to which you already know the answer, or that you should have been able to find out on your own with a little pre-interview research.

2. Involve the interviewer.
Rather than focusing solely on the company as a whole, personalize your questions by targeting the interviewer's experience with the team. Ask the hiring manager to recount favorite experiences or to discuss the company's main strengths and challenges.

3. Delve deeper.
Try to formulate in-depth questions that showcase your analytical ability. Take the information the interviewer provides and use it as a jumping-off point to move towards a deeper understanding of the issues at hand. Rather than responding with surface-level questions, kick things up a notch, focusing on more complex queries that begin with words such as "how" or "why".

4. Put a positive spin on things.
Even when you're asking pointed questions, there's no need to submit your interviewer to the third degree. It's important to come across as enthusiastic and optimistic about the position and the company's prospects, even when you're digging deep for more information. If the company is facing tough market conditions or stiff competition, ask about these challenges in a way that conveys your confidence in the organization's ability to thrive in even the grimmest of circumstances.

5. End with a call to action.
After you've put a number of in-depth, intelligent questions to your interviewer, your last question should always focus on the next steps in the hiring process. Ask about the schedule for making a decision, or whether you can provide any additional information. It's always to your advantage to leave the interview with a clear understanding of what comes next, so take this opportunity to ask a few questions about the way that the process will unfold.

By posing a few questions of your own in your next interview, you can showcase your analytical skills and uncover new insights about the company and the position. If you want to land your dream job, all you have to do is ask!