Forced differentiation there must be a minimum spread

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Forced differentiation. There must be a minimum spread (last year it was 8%) between the largest and smallest raises in the group. This check prevents the most common managerial cop-out, spreading raises evenly throughout the group. Reasonable adjustments. Although leaders are free to adjust the computer-generated recommendations, there are limits. This check works against clustering the majority of increases around one figure. Budgets. The average raise for the group cannot exceed the corporate target. This check emphasizes the point that giving big raises to people who deserve low raises hurts the entire group. Only after they have awarded percentage increases based strictly on merit can managers make adjustments for salary inequities created by personal circumstances and historical accidents. Again, the software plays a central role. For each and every focal group, it generates a simple graph that compares the salaries of each group member (on the vertical axis) with merit rankings (on the horizontal axis). The graph also displays a trend line that describes the desired salary distribution for the department. We operate according to the general principle that the best performer in a department No Excuses Management https://hbr.org/1990/07/no-excuses-management 22 of 28 6/14/2018, 2:27 AM
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successful—but my job was made more difficult because we did not follow some basic rules. I realized I have never formally stated our policy on resignations. Here it is: 1. React immediately. That means within five minutes. Nothing takes priority over working with a valued employee who has resigned. Delays such as “I’ll talk to you after our staff meeting” are unacceptable. Cancel the next activity you have scheduled. This demonstrates to the employee that he or she takes precedence over daily activities. It also gives you the best chance of changing the employee’s mind before he or she makes an irreversible decision. 2. Keep the resignation quiet. This is important for both parties. If other employees don’t know about the resignation, the employee does not face the embarrassment of publicly changing his or her mind. The company also gets more latitude. In one recent case, the resignation was disclosed. After I convinced the employee to stay, there were multiple rumors (all untrue) that we had “bought back” the employee. Cypress does not negotiate the salaries of employees who have resigned. We may communicate information about upcoming raises and evergreen stock options if that information is available at the time. 3. Tell your boss immediately and me within an hour. There is no excuse for not informing me (and should earn at least 50% more than the worst performer in that department. Managers adjust raises up or down to move salaries closer to the trend line.
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