Pay for Performance - by Ravi Patel

 

Paying for performance is quite in vogue now. Many Entrepreneurs are embracing this compensation philosophy. Have you done so?

 

The traditional mode of initially compensating people based on their skill level, experience and knowledge and then merit adjustments based on annual performance evaluation is becoming obsolete.

 

Instead, the enlightened approach is to establish appropriate metrics and then compensating employees based on performance. There are various combinations to create an appropriate program for your company and method of operations. The benefit of a Pay for Performance philosophy is that it holds employees accountable for performance and rewards superior achievement.

 

If you have not explored this approach, you might want to do so.

 

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