Do you: Promote people in hopes that they will perform well at the higher level? Wait until you’ve seen consistent performance at the higher level and then promote them? Both policies have pluses and minuses. Prospective promotions can be motivating but raise the specter of having to demote or even fire someone who doesn’t perform. Retrospective promotions make it safe for folks to reach for a bigger job but can feel dangly-carroty.
At indeed, we have a clever way to solve this problem. When you are at level X and you are knocking out of the park, it equates to “performing at level for level X+1” and you get a much larger bonus.
Cleverly the comp system is designed so your level X base + exceed bonus = base comp of X+1.
So we promote slow (ie promote after we observe you are doing the job at C+1), but at least one is not losing out on the $…
At indeed, we have a clever way to solve this problem. When you are at level X and you are knocking out of the park, it equates to “performing at level for level X+1” and you get a much larger bonus.
Cleverly the comp system is designed so your level X base + exceed bonus = base comp of X+1.
So we promote slow (ie promote after we observe you are doing the job at C+1), but at least one is not losing out on the $…