Annual Reviews and Compensation (Part 1 of 2)

Questions This Guidance Answers: 
  • Should I give all my staff the same rises?
  • How do I determine who gets what's during rises?
  • Can I substitute a bonus for a rise?

This cast describes a way to approach compensation decisions during annual reviews.

We're in the last quarter of the calendar year, so effective managers are already thinking about performance reviews for their directs. (We don't agree with delivering all reviews at the end of the calendar year, but we know it's prevalent). When we delivered our podcasts on reviews, we didn't discuss compensation, and in this cast we cover it for the first time.

The fact is, the compensation decision is truly separate from the performance analysis that precedes the preparation of the review. Nevertheless, managers often have to deliver the results of both at the same time, so it's prudent to be thinking about compensation in Q4.

If you don't know the bucket theory of compensation, you'll need to listen in.

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[...] [EDIT - Manager Tools has a great

[...] [EDIT - Manager Tools has a great podcast about annual reviews and compensation from, obviously, a manager’s perspective] [...]

It looked like the cast was about Total

It looked like the cast was about Total Compensation (Base Compensation + Variable Compensation – cash, stocks, options). The cast may have been more effective, if we focused on the Base Pay and removed point two – consider one time bonus.

Usually, the Base pay and Variable pay programs are planned, budgeted and awarded using different guidelines. Combining both could be confusing.

Another excellent cast at the perfect

Another excellent cast at the perfect time! We just finished annual reviews 2 weeks ago. I will be receiving by team's "bucket" number shortly.

I think this cast is excellent for non-manager employees also to help them understand how compensation decisions are made. The question was asked last week during my Skip Levels. When part 2 comes out, I'm going to suggest that my directors have their DR's listen to it.

As always, ya'll ROCK! :)


Hi guys

When I try to access the shownotes for this cast, only the first page is available. 

Accessing the slides, I get each page, but not for the shownotes. I've tried accessing from two different computers. Can someone test it for me and let me know if the full version of the notes is there still? 



Still no shownotes

Hey guys,
Still only the first page available for the shownotes :(

Can IT help?

Hello again, - have just come back as I wanted to review this for a meeting. Still can't access Shownotes in full.