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It’s Time To Have A Plan in 2024


We live in a reactive society — we see something that stirs our emotions online and quickly share, we yell at the TV when our team loses, or we buy the snacks in the checkout line because they’re easy — so it makes sense that it bleeds into how organizations are run, too.

One of the most common mistakes we see organizations make is reactive management, rather than being proactive about making a plan beforehand. 

What is reactive management, and why does it matter?

In this post-pandemic world, it’s easy to feel like you’re falling behind. Many leaders see other organizations who used their COVID funding to revamp their organizational structures or compensation plans, and they’re feeling the weight of not doing the same. If you’re a leader who feels like their organizational structure is lacking compared to others, you’re not alone. 

For example, one major way we’ve seen reactive management is the trend of some organizations giving sign-on bonuses as an incentive for recruitment. While at first glance this seems to address the problem of hiring gaps, some of the organizations’ current employees did not receive any retention bonuses. What message does that send to them? Unfortunately, it can unintentionally send a message that they mean less than new recruits. Because of this, we saw a wave of employees who quit and returned the next day to get the sign-on bonuses — and that’s certainly not helping in the long run.

When you’re feeling behind, and you find yourself making quick decisions to “stop the bleed” that comes with situations like these, that is the time to commit to being proactive and creating a plan for the future.


Being proactive boils down to this: Having a plan. When you have a structured approach to how you pay people, you’re much less likely to make reactive decisions. We understand that for many leaders, simply getting through the quarter, the month, or even just the week is the primary focus — it can be a hard cycle to get out of. But if you don’t get out of it, it can lead to continued issues that affect your organization’s culture such as pay compression, low employee morale, compensating people based on misguided requirements, or an inefficient workforce.

When you have an internally equitable pay structure — a combination of market research + job value + performance management — and an effective organizational design, you don’t have to feel as lost when making quick compensation decisions because those decisions will already have a foundation based on policy.

The building blocks of a quality compensation plan:

This isn’t going to be a quick fix but it’s going to be a lasting solution to many of the reasons you’ve been feeling behind, from staffing shortages to employee performance metrics.

If you’re ready to get started with revamping your compensation program or organizational structure, reach out to us today