It is always surprising when people resist the idea that pay and performance are related. It is so logical – reward your best, and make sure that slackers aren’t hanging around being rewarded.
Why would a rock star keep performing if he or she were only paid as much as the guy who surfs the web all day instead of contributing? Ignoring pay for performance is a sure fire recipe for low morale and low performance.
Even Communist Cuba gets it! After decades of trying to run an economy where a doctor is paid about the same as the paper boy, they are acknowledging the obvious – if you want great people to do a great a job, they have to be recognized.
Vice-Minister for Labour Carlos Mateu says it best himself, “It’s harmful to give a worker less than he deserves, it’s also harmful to give him what he doesn’t deserve.”
While SuccessFactors Research does not endorse any government or political philosophy, we do endorse people performance, and recognizing great individuals – Viva pay for performance!