Base Salary is not performance related

The managers tend to pay the highest base salary to the top performers in their teams. They should not pay the highest base salary to the top performers, who have no chance to grow and enhance their career, they should pay highest bonuses to these employees. The highest base salary should be paid to high potentials and they should enjoy the highest base salary review.

The managers are rewarded on the basis of the results they bring to the organization. They love their top performers as they make the manager successful in the short term. The manager should develop his or her successor and the team should also include some high potential able to succeed the manager, when it is needed.

The managers love the excellent sales numbers and they do not think about the future of the department. Human Resources has to intervene and they have to show the opportunities to the manager and the HR Managers have to learn the manager to develop their successors.

The HR has to provide a good explanation of the roles of the compensation components to managers as they use them properly to build a good salary structure in the department.

The managers should give a good bonus to the top performers and they should develop the high potentials to have a successor. The base salary review budget should be allocated mainly to the potential successors as they have a strong will to grow for the organization and not for the competitors on the market.