Performance-based pay ties an employee’s pay and to how they perform on their jobs. The purpose of performance-based pay is to increase productivity by rewarding those who best assist in achieving organizational goals.
Discuss the following:
- What are your thoughts on performance-based pay?
- Do you feel that employees should be compensated solely based on their performance? Why or why not?
- If you were an HR manager, how would you use performance evaluations to determine pay?