As valuable as variable pay plans are to organizations, they often fail to deliver intended results. Why? In many cases, they may not support an overall business strategy, have too many performance measures, appear to be completely arbitrary, are undermined by inadequate communication programs, or are simply too difficult to administer.
Learn how to avoid all-too-common mistakes and create quality-driven variable pay plans that are powerful recruiting, retention, and motivational tools that stand the test of time. While our subject applies to effective incentive compensation design in any form, our coverage will concentrate on broad-based or general incentive plans.
Originally recorded on September 08, 2022.
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Sal DiFonzo is a Managing Director with Gallagher’s Human Resources & Compensation Consulting practice. He has more than 25 years of experience in the compensation field. Areas of expertise include compensation strategy, broad-based incentive compensation, executive compensation and sales compensation. He specializes in incentive compensation design and assists organizational leaders with ownership transition/management succession through the creation of long-term incentive programs.
DiFonzo authored the book, Designing Effective Incentive Compensation Plans and numerous articles and speeches on compensation and incentive planning.
Prior to joining Gallagher, DiFonzo was Vice President in the Compensation and Career Strategies practice of Segal, a national human resources consulting firm. Prior to joining Segal, he was Managing Director of the compensation business unit of FMI Corporation, a firm that provides management consulting and investment banking services.
DiFonzo is a Certified Compensation Professional (CCP®), a Certified Benefits Professional (CBP®) and a Certified Sales Compensation Professional (CSCP®). He also serves on the WorldatWork Compensation Advisory Council.
He earned an MS in human resource management from Purdue University and a bachelor’s in economics/business and psychology from Cornell College.
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