“Companies are facing an opportunity to redefine the way in which they share with their employees the value they help create”

Tribune. After long months of pandemic, the moribund economic context gave way to a new economic situation: return of inflation, rise in energy prices, supply problems, even shortages. At the same time, on the job market, the economic recovery is marked by a drop in unemployment, but with strong pressure on hiring, in particular that of technical profiles and executives.

The government’s policy response is clear: companies are called on to increase wages to preserve purchasing power and strengthen the attractiveness of companies that are struggling to recruit. The branches are, for their part, expected to negotiate taking into account a recovery in economic activity to the pre-crisis level.

In this context, all the indicators match so that the demands of the employees are demanding. The compulsory annual negotiations 2022 promise to be tense!

Contrary to popular belief, variable devices can be applied to almost any job, as long as it is possible to measure or assess performance.

Indeed, the prospect of a generalized increase can frighten companies by its mechanically significant cost, for an efficiency which is difficult to measure, both in terms of talent retention and the ability to attract them. Now is more than ever the time to take an interest in devices that are still underused by businesses.

Unlike the fixed salary, which remunerates the job performance, skills and experience acquired, variable remuneration rewards performance expected by the company. It is therefore by nature differentiating, because it rewards those who really contributed to the performance.

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It is effective if we ensure that the terms of this compensation are fair. This therefore presupposes finding the right indicators, ensuring that they are available on time and reliable. This also supposes having set the objectives taking into account each person’s potential, thus giving everyone the same chances of winning the bonus offered.

Contrary to popular belief, these variable devices can be applied to almost any job, as long as it is possible to measure or evaluate performance. Today, companies in the logistics sector are also asking to deploy variable compensation plans for order pickers and forklift drivers. The objective pursued is to motivate employees to give the best of themselves. This frees up substantial budgets subject to a target being achieved. Profitability for the company is thus improved and the cost of the envelope partly absorbed.

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