Learning Options

Variable Pay — Improving Performance with Variable Pay
Certification Course: C12

Designing for Results

This intermediate-level course presents the fundamentals of variable pay. The course focuses on compensation strategy and variable pay, definitions and the design and implementation of incentive, recognition and bonus plans.

• Learn about the three categories of variable pay.
• Identify common business strategies and objectives for achieving them.
• Examine internal and external factors.
• Discuss the activities for designing the structure of the plan.
• Find out aspects to consider in establishing target performance and payouts.
• Learn about funding and distribution of plan earnings.
• Discover how to implement, communicate and evaluate the success of your plan.

What You Will Learn

Total Rewards and Variable Pay

• Elements of compensation
• Categories of variable pay

Supporting Business Objectives through Variable Pay

• Business strategy
• Business strategy drives business objectives
• Business lifecycle
• Variable pay helps achieve business objectives

Types of Variable Pay

• Incentive plans
  • Short-term incentive plans
    • Profit-sharing plans
    • Performance-sharing plans
    • Individual performancebased plans
• Long-term incentive plans
  • Equity- and nonequitybased plans
• Bonus plans
• Referral
• Hiring (sign-on) bonus
• Retention (stay) bonus
• Project completion bonus
• Recognition plans
  • Spot awards
  • Managerial recognition
  • Nominations
  • Organizationwide recognition

Developing a Variable Pay Plan — Phases 1 and 2

• Phase 1: Pre-Design
  • Considering internal and external factors
  • Obtaining management support
  • Identifying the design team
• Phase 2: Design
  • Determining plan objectives and plan type
  • Defining eligibility
  • Selecting performance measures

Developing a Variable Pay Plan — Phase 3

• Phase 3: Funding and distribution
  • Determining performance targets and payouts
  • Funding the plan
  • Distributing plan earnings
• Final approval

Implementation and Evaluation

• Plan implementation
  • Selecting the implementation team
  • Developing the communication plan
  • Introducing the plan
  • Coordinating plan administration
• Plan evaluation
  • Determining plan effectiveness
  • Why plans fail
  • Potential evaluation outcomes

	Credits CCP: Required Recertification: 2 course, .5 Exam CEUs: 1.5 Course, .3 Exam CPEs: 16 CFP: 8 CPT: 12 points CPIM/CFPIM/CSCP: 14 points PHR/SPHR/GPHR recertification hours: 16 (classroom); 14 (live CourseCasts) GRP Equivalency: GR6
	Faculty/Course Contributors
	Course book amendments
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