Return of Piecemeal Pay?

Pay for Performance
David Wilson, Manager, Canada, Premium Member
Hi Barbara, in the early 1900's, individual pay rates were quite common. In the mid to late 1900's, "equal pay for work of equal value" seemed to be the trend (at least in western countries). In the 21st century, pay for performance appears to be popular. With bonuses and individual treatment for pay, I agree we have taken a step back to the past.

Pay for Performance
Mohun Aujayeb, HR Consultant, Mauritius, Member
Pay is central part of the employment contract of every officer. It is important that there is a base pay and a flexible pay based on inproved performance.

Return of Piecemeal Pay? We Need a Balanced Reward System
Janice Johnson-Lorde, Student (MBA), Trinidad and Tobago, Member
@Mohun Aujayeb: One must always remember that reward for performance includes other aspects. Leventhat (1991) suggested that management consider a total reward system that outlines WHAT as well as the HOW in order to reward employees for their contribution to achievement of organizational goals.
Some contributions are intangible but valuable to the firm. So a base pay may be good, but contingent pay along with related services as well as non-financial benefits will bring a good balance to a reward system.
Different people are motivated differently and thus it is important for managers to know the workforce and what is required to attract and retain their efforts and loyalty.
Also market rate analysis and job evaluation processes are critical to reward/payment decisions because the value of employees extends beyond the internal value and includes the market price for their talent. Because of this, performance alone cannot determine pay.