CONCLUSION
Strategic pay plans need to align pay with both the company's business strategy and the values and expectations of the employees. There is tremendous productive potential within the employee population waiting to be unleashed. any companies have already begun the process of tapping into this potential in order to gain competitive advantage. The key is not money itself. Rather, it is viewing money as the language of business--as a tool of communication.
Translating strategic business objectives into earning opportunities is what strategic pay is all about. In other words, everyone knows that the red phone is wired directly to the company's strategy. And the message that comes over the wires speaks that strategy in a way that employees understand.
TED TURNASELLA is compensation manager for Long Island, New York-based Newsday, Inc., publisher of two daily newspapers. He holds a bachelor's degree from Saint Peter's College and an M.Sc. degree in Labor and Industrial Relations from the New York Institute of Technology. His experience includes implementing pay systems in the manufacturing, travel, and publishing industries. He also lectures on compensation issues at local colleges and is a member of various professional organizations, including the Long Island Compensation Association.