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Variable Compensation: All HR Needs to Know

AIHR

Variable compensation, also known as variable pay , is supplementary compensation typically tied to performance goals measured by specific metrics. Lowering fixed costs: Variable pay programs allow you to lower base salaries because you’re offering employees the prospect of earning additional money.

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High Expectations: Managing For Value In The Automotive Industry

Chief Executive

Since shareholder value is driven by investor expectations of future cash flow and EP growth (See S&P 500 Warranted Value of Discounted Economic Profits vs. Actual Traded Value chart, below), EP has been used as the profitability metric for AlixPartners’ Automotive Value Creation study.

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Talent Strategy: ‘It’s About Being Intentional’

Chief Executive

And the already significant fixed costs of adding staff are only getting steeper. Every other week, he meets with his talent acquisition team to review the pipeline and the dashboard of metrics on what the market demands are, what they’re searching for, how they are doing in terms of speed and agility of hiring and how it’s changing.

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A Practical Guide to Training Evaluation

AIHR

Phillips added a fifth level, which is return on investment (ROI) – a metric that is incredibly valuable for HR leaders to demonstrate to decision-makers the importance of training. For example, using cost-benefit analysis for a training program can determine if the money invested in training has had any impact. .

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We Can’t Study Short-Termism Without the Right Metrics

Harvard Business Review

However, firms can efficiently increase margin growth without much revenue growth by managing to squeeze out their fixed costs to service the same level of output. McKinsey’s margin growth measure classified firms that report higher earnings growth than revenue growth as myopic.

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3D Printing Will Revive Conglomerates

Harvard Business Review

That gave it a steadier cash flow to cover the costs of its large fixed cost investments, but did not eliminate the unused capacity of plants dedicated to one kind of product. Headquarters provides accountability and perhaps better metrics than the divisional managers might otherwise have.

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Aligning Your Organization with an Agile Workforce

Harvard Business Review

This arrangement is often complicated by inconsistent decision criteria: purchasing wants the lowest price and a fixed cost, whereas the business or operation wants the best resource, a good cultural fit, and enough flexibility in the contract to allow for changes in scope or strategy. What metrics are used, and are they reasonable?