You are the Divisional Lead of Human Resources at a large international mining firm with operations located throughout the world. The senior leadership team wants to move away from providing a 100% base salary plus benefits for manager-level positions and towards a performance-based compensation system. They cite a number of factors in their thinking, including the varying value of the dollar within different jurisdictions, the inability of some administrative staff to motivate themselves when on assignment at centers outside of Canada, and a disparity in what expatriates are paid relative to their host country.

 

Complete the following tasks:

You will need to research tiered performance-based compensation systems that outline three levels of administration (managers, vice presidents, CEO). From your research:

1. review how management tiers interact with one another relative to performance measurement and pay. Note that the concept of performance-based compensation systems (pay for performance) is a different concept than performance management systems. Performance-based pay may be used at times in performance management, but it has its own entity.
2. review how performance should be established, including the formulation of goals and metrics on how performance will be monitored.
3. explore how this structure is designed to motivate the team and improve performance.
4. begin to think an argument for or against managers in different countries being paid in local currency vs. Canadian dollars.