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Representative POMs are described for Compensation at each level of maturity.

1Initial

• Practice

  Pay only fixed salaries.

  Outcome

  Employees are compensated by their fixed salary only.

2Basic

• Practice

  Hold discussions between employees within the IT function and line managers to determine fixed and variable salary components.

  Outcome

  The motivating aspects of variable compensation are generally ensured, though typically variable salary may not be linked to the formal performance review process.

  Metric

  % of employees with variable components within their salaries.

3Intermediate

• Practice

  Base a range of fixed and variable salary components on the employee's current work position and qualification (job families), and career level.

  Outcome

  There is consistency and transparency of fixed and variable compensation across IT and some other business units.

  Metric

  % of job families with associated salary ranges.

• Practice

  Link variable compensation to performance against individual goals.

  Outcome

  There is identification of performance enhancing goals for employees.

  Metric

  % of salary that is related to compensation for achieved goals.

4Advanced

• Practice

  Take regular decisions to match pay, under pay or over pay compared to the market.

  Outcome

  The salary policy is effectively positioned within the market.

  Metric

  # of decisions taken on salary per specified time interval based on market positioning.

• Practice

  Link variable compensation to individual, team, and organization-wide performance and the career level, to ensure retention and incentivizing of performing employees.

  Outcome

  The compensation system is targeted at the retention of high-performing employees.

  Metric

  % of employees with variable compensation linked to individual, team, and organization-wide performance.

5Optimized

• Practice

  Continually monitor compensation management regarding the ability to retain high-performing employees.

  Outcome

  There is transparency on the effectiveness of compensation management.

  Metric

  Churn rate (comparative to industry norms).

• Practice

  Survey the market with respect to industry-wide average compensation.

  Outcome

  Detailed information is available on the strengths and weaknesses of the compensation system and the means to optimize it.

  Metrics

  • # of publications screened.
  • Amount spent per employee on market survey activities.