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ls Lhere any LruLh ln Lhe proverb As you sow so you reap?

Managers are ofLen lefL muddllng over


Lhelr pay sLrucLures Lo see how Lhey can geL more producLlve resulLs from employees by Lweaklng Lhelr
pay flgures very ofLen companles resorL Lo more pay more work sLraLegy 8uL someLlmes for some
lnexpllcable reason Lhls sLraLegy falls

An organlzaLlonal survey was conducLed for over 1000 employees Lo sLudy Lhe effecL of money over
producLlvlLy More Lhan 63 of Lhe people sLaLed LhaL money was a secondary moLlvaLor CLher Lhlngs
llke growLh opporLunlLles perks and flnanclal asslsLance maLLered more Cf course money was voLed
as number Lwo A large number of employees however admlLLed LhaL wlLhouL money oLher Lhlngs
would have very llLLle lnfluence on producLlvlLy

Money ls also a personal measure for employees Lo assess Lhelr value Lo Lhe organlzaLlon 1he more Lhe
pay Lhe more Lhey feel valued Lo Lhe organlzaLlon Money also works as a baromeLer Lo check Lhe
employees compeLlLlve value ln Lhe lndusLry lf your pay scale ls lower Lhan LhaL of your compeLlLor lL
becomes your value score for your employees

AnoLher aspecL abouL pay ls LhaL some organlzaLlons Lry Lo accommodaLe Lhe llfesLyle of Lhelr
employees lL ls reasonable Lo offer compensaLlon LhaL ls commensuraLe wlLh Lhe accepLable llvlng
condlLlons of employees 8uL lL would be unreasonable Lo meeL all of Lhelr personal pleasures and
luxurles

Money can be a carroL and also a moderaLor CrganlzaLlons have used pay Lo enforce dlsclpllne and
wellorganlzed worklng cllmaLe CrganlzaLlons focus more on oLher beneflLs llke Lralnlng and
developmenL career growLh opporLunlLles comforLable and pleasanL worklng condlLlons Lo make up for
low pay scale Lmployees flnd lL hard Lo leave a greaL worklng envlronmenL and fuLure career prospecLs
for exLra money

CompensaLlon experLs have long argued abouL Lhe raLlo of pay Lo performance Companles do Lhelr besL
Lo encourage producLlvlLy and lncrease work ouLpuLs 8uL Lhe raLlo of pay Lo performance geLs skewed
ln favor of more pay So whaL we now have ls more pay for lesser work

AnalysLs have recommended LhaL pay should be dlrecLly llnked Lo performance 1hey say LhaL Lhere
should be LransparenL and clear relaLlon esLabllshed beLween performance and pay erformance and
pay lndlcaLors should be clearly esLabllshed and well known Lo employees eople should be able Lo
Lrack Lhelr performance levels and be moLlvaLed Lo lncrease Lhelr producLlvlLy

1hls sounds llke an egallLarlan model where boLh parLles beneflL ln equal measure 8uL Lhlngs are noL so
slmple CompensaLlon does noL [usL reflecL performance sLandards lL also Lakes Lhe value LhaL Lhe
person brlngs ln Lo Lhe organlzaLlon lor lnsLance an employee who en[oys a good repuLaLlon ln Lhe
lndusLry brlngs goodwlll Lo Lhe organlzaLlon Also when an employee ls well neLworked and helps
generaLe buslness due Lo hls presence also brlngs ln more Lo Lhe offlce Lhan [usL performance

eslgnlng a [udlclous compensaLlon sLrucLure needs careful LhoughL and conslderaLlon Managers need
Lo keep Lhe organlzaLlonal ob[ecLlves ln perspecLlve CompensaLlon should lnclude performance
measures and also value LhaL Lhe employee brlngs Lo Lhe organlzaLlon

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