Measuring Performance

Executive pay can be seen from a number of perspectives.

Those in demanding roles, under pressure to deliver results, naturally expect to be rewarded.

Shareholders want results and are prepared to invest in retaining the best people.

Long Term Incentive Programs (LTIP) are designed to retain executives over the medium term and align with the company strategy.

There are a variety of metrics used and more often than not they will include:

  • Revenue Growth
  • EBITDA and/or PBT – Profit measures
  • Share Price over a given window of time

Mostly looking for year on year on improvements – demands can be relentless.

Employee Engagement scores are increasingly finding their way in to LTIP’s as are environmental impacts too.

All of these performance measures are auditable, there’s little left for interpretation or misunderstanding.

Executives can usually track their own performance.

Compare that granularity to employees in warehouses which measure employee performance using Units per Hour – UPH.

UPH is a high level guide, lacks granularity and if it’s being used to measure an individual’s performance it’s simply unfair.

Measuring efficiency is granular and fair – Vitesse can underpin performance related pay schemes much like an LTIP, the data is empirical.

Vitesse enables employers to reward all employees who meet and exceed targets.

 

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Daniel Dodd

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