SPHR · Question #250
The first step in implementing a pay-for-performance system is to:
The correct answer is B. Establish the expected results. Implementing a pay-for-performance system begins by clearly establishing expected results. This includes defining performance outcomes that are tied to organizational goals. Without clear targets, it's impossible to fairly measure or reward performance. Extract from…
Question
The first step in implementing a pay-for-performance system is to:
Options
- ADetermine the amounts to be paid for achievement
- BEstablish the expected results
- CEstablish mutually accepted standards
- DNegotiate the annual appraisal plan
How the community answered
(27 responses)- A4% (1)
- B89% (24)
- D7% (2)
Explanation
Implementing a pay-for-performance system begins by clearly establishing expected results. This includes defining performance outcomes that are tied to organizational goals. Without clear targets, it's impossible to fairly measure or reward performance. Extract from HRCI-aligned HR knowledge: Within the Total Rewards domain, SPHR guidance includes "aligning pay with strategic objectives" and starting with the identification of business- critical outcomes before deciding payout levels. Clear performance criteria ensure transparency, fairness, and accountability in compensation design.
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