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#93762

Bill Brantley
Participant

I question the premise that performance-based pay works in the private sector:

1) http://news.cnet.com/Performance-based-salaries-dont-always-pay-off/2009-1069_3-997668.html
2) http://www.management-issues.com/2009/6/25/research/performance-related-pay-doesnt-encourage-performance.asp
3) http://www.lge.gov.uk/lge/core/page.do?pageId=119829

It sounds like a reasonable idea but given the nature of modern work that is largely knowledge-based and difficult to measure (unlike a repetitive task in an assembly line) how do you insure that you are measuring real performance? Tying it to the organization's results sounds like a good cure but then you have the task of determining who contributed what and how important was their contribution to the results. You have to have fair, transparent, and easily-verifiable measures to judge dissimilar performance. And how do you measure the time that I spent in the shower thinking of a work problem?