Pay For Performance Plan Essay

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Pay for performance plans can be very effective depending on how well you design your plan within your company. Every company is different even if they follow the same design plan. Some companies believe that all of the employees should be involved in everything and others do not feel that way. At the end of the day it all comes down to the type of management that you have and what are their values, beliefs, and goals for the company. Once the pay for performance plan is good to go there are successes that can make the plan effective. Pay for performance plans are plans that consist of efficiency, equity, and compliance in designing a plan (Milkovich, pg335). Efficiency involves three general areas of concerns, which are strategy, structure, and standards. When you think of strategy, you think of ways that you are going to get something done to where it is more effective for you. When it comes to …show more content…

When employees feel that they are being taken care of and receiving the pay that they are supposed to this will boost their work performance and also encourage others in the work place. Employees still have to understand that if they get paid more then they may receive more responsibility. Also, this can raise the morale in the company. For example, I think I get paid a fair amount of money but I don’t really care for my job because of the management. Even if I were to get paid more I would not care because I would still have the same management. A pay for performance plan has its pros and cons. A few pros are align employees actions with the interests of the company, attract and retain talent, give employees, a stake in the company, and control cost (Benefits of Pay For Performance Compensation Plans). The cons can be that employees try to take advantage of the company or still not be completely

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