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Compensation #1


Hi, Bob.  Your newsletter came while I was doing research…for suggestions for a competitive way to offer incentives for managers who fill in at another location until an opening is filled.  Basically, doing 2 jobs at one time…their own and the one of the vacant position.  Currently we think we’d pay (in addition to salary) a daily rate at the 2nd location, based on the annual salary of the open position divided by 2080 x 8 hours.  Thoughts?  Please and thank you.




I am making an assumption that these are professional or management positions. I admire your desire to offer an incentive for this situation.  However, I think your plan is a bit too rich as I do not believe it is necessary to pay the entire amount of the salary of the vacant position.  It is always more difficult to do two jobs, but if there is a need for both positions in your organization, then it would be impossible for one person to perform all that is required of both jobs.  In the case you describe, the best you can expect is for someone to oversee the most vital tasks of both positions and leaving the less important, yet necessary items, undone.

My recommendation is to look at both positions and jointly set short term goals for both.  Give an up-front incentive such as a temporary 15% or 20% salary increase and then offer a cash bonus upon meeting or exceeding the goals or standards being met while working both jobs. When the replacement is found, then pay a bonus based upon meeting the performance criteria.  This could be a lump sum and the target amount should be agreed to up front.

If these are professional and management positions, it could take in excess of 3 months to find the right person.  This makes for a good opportunity to take your time to ensure that the best person for the position is found.

Contact me directly if you have any questions or if I can be of additional assistance.

Thanks for asking Bob.

Response from Sharon

From: sharon
Subject: RE: Ask Bob

Thanks so much, Bob.  I always appreciate your insights.  Take care, Sharon

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