Incentive Benchmark Nucor

Productivity leader Nucor rewards leadership for results. Always interesting to follow the performance and corresponding employee incentive compensation for “benchmark incentive” company, Nucor. Yes, they’ve enjoyed some nice tailwinds lately, but still very impressive for an otherwise “gritty commodity business”. Every article about Nucor seems to mention their aggressive variable comp plans and leaders often link their top-tier productivity to…

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Incent Which Employees First?

Six Questions to Help You Pick by Rob Marchalonis Who first? Anyone who has even considered employee incentive compensation plans asks the question, “With which employees should we start?” My strong belief is that incentive plans are best deployed by functional team or “workgroup”. Most small to mid-sized organizations can conveniently group their employees into a relatively few (4 –…

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Engage with One-to-One Meetings

By Rob Marchalonis. Multiply your engagement by dividing your audience. Regular one-to-one meetings can be an effective and efficient way to engage with your employees, and others. During these very personal connections, you have the opportunity for more meaningful communication, relationship building, and understanding of mutual wants, needs, and expectations. Select a meeting frequency that allows for optimal connection and…

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Nucor Steel Incentive Role Model

“Every employee of Nucor Steel plants across the world is on incentive pay,” declares Giff Daughtridge, vice president and general manager of Nucor Steel Berkeley, on April 4, 2018 at the Daniel Island Club. “By doing this, the company is able to maintain the highest wages in the steel industry. “From the last person we hired to our CEO, we’re…

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Charlie Munger on Incentives

“Never, ever, think about something else when you should be thinking about the power of incentives.”  Charlie Munger Both Warren Buffet and Charlie Munger extensively use and have strong feelings about incentives.  Every business leader would be wise to learn them. The following are excerpts from a very interesting article on incentives from the Farnum Street website.  Read article here.…

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Are CEOs Paid Too Much?

Is the CEO’s compensation a relevant indicator of employee treatment, fairness, or otherwise? Seems to me a better measure is the value the CEO brings to the organization relative to whatever they are paid. I believe employees care more about how THEY can enjoy a reasonable “share of the company’s success” based on their workgroup’s contribution and care less about…

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Year-End Bonus for April Fools?

By Rob Marchalonis. Many organizations and leaders give year-end bonuses to their employees.  The big question is why?  Are your end-of-year payouts strategic and motivational, or discretionary and taken-for-granted?  How would your employees answer this question? How much connection is there, from the recipient employee’s perspective, to the bonus received relative to their contribution to the organization? If the annual bonus is…

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Incentive Results I’m Seeing

By Rob Marchalonis. Recently, I’ve been helping business leaders design and implement smart incentive plans.  Here’s what I’ve learned: Believe it or not, many workgroups operate at just 60% productivity, or less. Employees have much more capacity, but minimal strategy to encourage extra output. There is simply no reward to work harder or smarter, and employees wish there was. Incentive compensation…

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