Most companies wanting to improve the productivity and commitment of their employees resort to pay for performance. Planning its implementation well and always supporting the staff is essential for its success
How many cases do we know of people who without doing much earn millionaire salaries? Or that of others who try their best and their pay is very low? In the two cases presented, there is an injustice in terms of the work done and the "prize" received, in this case monetary.
To try to avoid these inconveniences, companies have created a pay-for-performance system where money is given to workers, depending on what they have done. This is a system that has been implemented in recent years and is gaining strength in today's organizations.
The question that arises is: what are the reasons why more and more companies are adapting this system? There are many economic and productivity reasons. On the one hand, this seeks to reduce costs by not paying too much, as we said at the beginning, to someone who is not doing their job well. Likewise, it seeks to encourage employees to try harder, which will result in the improvement and increase of the work of said people.
In addition, in strong competitive environments it is necessary to increase performance and, giving money to achieve this, is valid when what is sought is to improve. Likewise, with the performance salary, the commitment of the staff is awakened since they will be made aware that by doing an excellent job, they will receive their deserved reward and will strive to do it well more and more.
Logically, within the salary awarded to an employee, there must be a fixed payment that will be delivered no matter what or how much they have done. And added to this, another part will be given depending on objectives or achievements achieved as long as the result has been favorable. This seeks to maximize the labor cost of the company, not reduce it.
Therefore, an evaluation of all the achievements, as well as the means or resources that were used for it, should be carried out. It cannot be accepted, for example, that a building was built in record time but its foundations are weak or the quality of its design leaves much to be desired. And if cost overruns were incurred, much worse.
Depending on what you do, you will receive your reward. Main premise in performance salary
What is intended with this is to pay the employee according to the value that he generates within the company, understood as the contribution that the individual has made to the company in terms of good results that allow the growth of the organization and himself. as such.
All of the above must be planned in a strategic way as inconveniences could arise. For example, an employee who does not achieve certain objectives or goals, could feel frustrated and this would be reflected in later tasks where his performance would decrease, causing problems for him and for the company.
Symptoms of stress or fatigue could be created in an employee when he feels that he is not meeting the objectives set, which means that his pay will not be very good. Therefore, the company must be an entity that advises, helps and collaborates with all its employees, generating a symbiosis where the achievements of an individual are those of the organization and vice versa.
Staff should never be left adrift, doing their job to the best of their ability. The company has to be in permanent contact with its employees and they will feel that they are not alone and that they will fully meet their goals. And if they don't, they won't worry, since the entire organization will look for a way out that will allow them to overcome the obstacle and continue in the "fight."
As we previously appreciated, it is not enough just to give a performance salary and wait for a positive response from employees. Both they and the company must look for the best methods so that the salary that is going to be received increases and the company stands out for its achievements, its performance, and the perfect commitment of the personnel that can be palpable throughout the organization.
