An article from the WSJ (at AZcentral.com) on paying for performance. The article cites a few examples of companies struggling with the challenges of implementing pay for performance. It’s hard to be surprised by the fact that employees aren’t all thrilled with the idea of not getting the same increase as others in the company.

That said, companies have a choice.  In the words of Martyn Fisher, Director of Talent Management at National Starch and Chemical: "As much as we would regret our average performers leaving, we’d regret more an above-target performer leaving, and that is the tough choice we have to make."