Name
Can Math Improve Pay for Performance? A New Approach to Calibration
Format
TR Talk
Description

Organizations often aspire to create a direct link between business performance, individual contribution, and compensation outcomes. Yet many compensation professionals struggle with calibration processes that can introduce subjectivity, inconsistency, and debate as ratings move through the organization.

This session introduces a compensation design concept called cascade auto-calibration, a framework that uses organizational performance relationships to create a more structured connection between enterprise results, leader performance ratings, and employee outcomes. Under this model, leader ratings serve as anchors for the average performance distribution of their teams, creating a cascading relationship throughout the organization.

Through a live demonstration and interactive discussion, attendees will explore how the model works, how it compares with traditional calibration approaches, and how it addresses common challenges such as organizational changes, new leaders, and leaves of absence.

Rather than advocating for a single solution, the session will encourage participants to evaluate the strengths, limitations, and practical implications of different approaches to calibration and pay-for-performance design. Attendees will leave with a framework they can use to assess whether their current programs are producing the outcomes they intend.