Podcast: What All the Performance Management Changes Mean for Total Rewards Team

In the past year nearly 50 percent of companies have considered eliminating performance evaluations and 85 percent of them, say HR professionals, are seeking to simplify the performance management process. This shift has a significant impact on how compensation and benefits managers determine employee incentives.

Consequently those that run compensation and benefits functions, or "total rewards" as it's often known, should focus on three priorities in particular this year.

1    Pay-for performance initiatives and how total rewards leaders reward employees when performance management ratings are being eliminated.

2    Return on investment in the total rewards function, and ensuring that HR teams working on the projects that will have the greatest impact on employee retention and engagement.

3    Setting forward-looking quarterly goals that focus on skill development, and aligning rewards with that development, instead of looking back and rewarding past performance; something that typically occurs with an annual review.

Monique McCloud-Manley, practice leader of the CEB Total Rewards Leadership Council, discusses these trends and how total rewards professionals should respond.