Wage Caps
Hunting dog
6 Posts
We are coming off a two year wage freeze in November. As part of lifting the wage freeze, we want to restructure our compensation program and implement caps on wages for our supervisors, production, purchasing and IT people. When employees hit the wage cap, their wage would be frozen at that level, but in an effort to keep them motivated, we would give them a performance bonus (although I don't really want to call it a bonus) each year based 50% on their individual performance and 50% based on how well the company is doing. We would monitor those caps each year and adjust as necessary based upon the local wage survey information. I would appreciate your feedback and advise about implementing such a wage structure.
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