Performance Based Pay Essay
Compensation and Benefits
Cardinal Stritch University
Group MSM 3-356
Instructor: Rafael Viscasillas
Table of Contents Performance based pay is an effective way to adequately distinguish between the best and worse performers within the company structure. Commonly referred to as merit pay or skill based pay, performance based pay is a compensation system designed to reward employees for attaining additional skills or for completion of specific goals.
"The concept is attractive to many employees since there is a direct link between their compensation and the work-related skills they may learn and use and since service time with the company and job title are …show more content…
Little ongoing feedback took place throughout the year. This lack of feedback had the potential to cause an employee who was a poor performer to regress into an even worse performer by the time the employee was evaluated provided the employee had not already been dismissed from the organization for his meager performance. In addition, recognition for an employee performing at an above average level was not being given causing the employee morale within the organization to diminish.
Another area of performance management that needed improvement at the ELCA Board of Pensions was the fact that the organization did not involve its employees when determining individual performance goals, nor did it take into consideration the employee's perception of their performance. An individual employee brought up for review by a supervisor was given no provision for relating their own assessment of work related issues. This method fails to nurture an employee's sense of belonging and identity within the organization, ultimately undermining the employee collaboration, loyalty