Corporate [START_ENT] America [END_ENT] taking new view on compensation .  Anne Murray  NEW YORK 1996-08-23  Corporate America is planning major changes in employee compensation in the next few years , according to a recent study .  What it comes down to is this : If you 're highly skilled , you 'll benefit nicely .  But if you 're not and cannot contribute to your employer 's goals , you 'll be paid less .  The survey , conducted in late 1995 and the early part of this year by management consulting firm Towers Perrin , showed that the focus will be on an employee 's overall value to the company 's bottom line -- rather than how well an employee performs a specific task .  Presently , for example , if an accountant 's job involves doing five specific tasks , he or she can expect a certain salary , said Sandra O'Neal , a Towers Perrin principal .  In the future , the accountant will be evaluated solely on " knowledge , skill and abilities , " she said .  In addition to using accounting skills , the accountant will also have to be creative , work well in a team , be sensitive to customer needs and set productivity goals .  " The good news is , if you 're highly skilled and have many abilities , you 'll be paid more , " said O'Neal .  " The bad news is , if you 're not skilled and ca n't contribute to a team , to customer service and the organisation 's goals , you 'll be paid less . "  Of the 750 mid-to-large size corporations surveyed , 81 percent had undergone a major restructuring in the last three years , and more than two-thirds reported that productivity and profits were up as result .  Next on the agenda for these firms is developing a new compensation structure , and 78 percent report that they are considering a new , skills-based plan for both management and non-management employees .  This coming shift , O'Neal said , " is not just isolated or a fad .  It 's an inexorable change . "  After World War II , corporations adopted a " military model " creating hierarchical organisations where " the concept of defined tasks worked great , " she said .  But as the economy became global , customers were more demanding and problems became more complex .  " Multi-layers kept management at a distance from its customers , " O'Neal said .  Now organisations must change to stay competitive .  O'Neal says firms will place a greater emphasis on teams and team performance in giving raises .  If your team does well , you 'll do well .  If it does n't do well , do n't expect a raise .  Is this fair to an employee who can go the distance but is on a team that ca n't keep up ?  " That 's an important question we used to ask a lot , " said O'Neal . "  It 's not a question we ask any more .  The more important question is -- ' Do we have results ? '  "  To get those results , 27 percent of the companies surveyed plan to eliminate base pay increases in favour of cash bonuses and incentives , such as employee and team award programmes and education .  Companies that can change their culture and view employees as business partners will do well , O'Neal said .  For example , the survey rated some participants in the survey as " high-performing " companies , based on their return on equity above 16 percent .  Those companies also said they already offer employees variable pay and business education , give their managers more control over pay decisions and celebrate employee and team success .  " They respect employees more , they trust employees more and they value their employees more , " O'Neal said .  " The key to success at high-performance companies is engaging employees in a business partnership .  It will improve a company 's bottom line . "
Corporate
America
taking new view on compensation .  Anne Murray  NEW YORK 1996-08-23  Corporate America is planning major changes in employee compensation in the next few years , according to a recent study .  What it comes down to is this : If you 're highly skilled , you 'll benefit nicely .  But if you 're not and cannot contribute to your employer 's goals , you 'll be paid less .  The survey , conducted in late 1995 and the early part of this year by management consulting firm Towers Perrin , showed that the focus will be on an employee 's overall value to the company 's bottom line -- rather than how well an employee performs a specific task .  Presently , for example , if an accountant 's job involves doing five specific tasks , he or she can expect a certain salary , said Sandra O'Neal , a Towers Perrin principal .  In the future , the accountant will be evaluated solely on " knowledge , skill and abilities , " she said .  In addition to using accounting skills , the accountant will also have to be creative , work well in a team , be sensitive to customer needs and set productivity goals .  " The good news is , if you 're highly skilled and have many abilities , you 'll be paid more , " said O'Neal .  " The bad news is , if you 're not skilled and ca n't contribute to a team , to customer service and the organisation 's goals , you 'll be paid less . "  Of the 750 mid-to-large size corporations surveyed , 81 percent had undergone a major restructuring in the last three years , and more than two-thirds reported that productivity and profits were up as result .  Next on the agenda for these firms is developing a new compensation structure , and 78 percent report that they are considering a new , skills-based plan for both management and non-management employees .  This coming shift , O'Neal said , " is not just isolated or a fad .  It 's an inexorable change . "  After World War II , corporations adopted a " military model " creating hierarchical organisations where " the concept of defined tasks worked great , " she said .  But as the economy became global , customers were more demanding and problems became more complex .  " Multi-layers kept management at a distance from its customers , " O'Neal said .  Now organisations must change to stay competitive .  O'Neal says firms will place a greater emphasis on teams and team performance in giving raises .  If your team does well , you 'll do well .  If it does n't do well , do n't expect a raise .  Is this fair to an employee who can go the distance but is on a team that ca n't keep up ?  " That 's an important question we used to ask a lot , " said O'Neal . "  It 's not a question we ask any more .  The more important question is -- ' Do we have results ? '  "  To get those results , 27 percent of the companies surveyed plan to eliminate base pay increases in favour of cash bonuses and incentives , such as employee and team award programmes and education .  Companies that can change their culture and view employees as business partners will do well , O'Neal said .  For example , the survey rated some participants in the survey as " high-performing " companies , based on their return on equity above 16 percent .  Those companies also said they already offer employees variable pay and business education , give their managers more control over pay decisions and celebrate employee and team success .  " They respect employees more , they trust employees more and they value their employees more , " O'Neal said .  " The key to success at high-performance companies is engaging employees in a business partnership .  It will improve a company 's bottom line . "
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