Wednesday, February 11, 2009

Retire "Pay For Performance"?

A columnist thinks the phrase "pay for performance" needs to be retired. Here's his explanation....

"With trillions of dollars disappearing from stock markets and economies worldwide, it’s a gross understatement to call 2008 a bad year. It was a year that slashed our savings, threatened our jobs and rocked our confidence. Yet, at the very same time banks were “borrowing” billions of dollars from our nation’s treasury, their executives were also larding on themselves huge bonuses. Over $18 billion worth, according to President Obama. I think it is time to officially retire the phrase “pay for performance.” The phrase to use now is “pay in spite of performance,” because clearly for today’s corner office crowd this escalator only knows how to go up."

Pay for performance works. But it only works when performance is measured effectively. In our business, a customer provides feedback. That feedback is THE ONLY factor used to determine our employees' paycheck. That's a powerful, motivating tool - money does indeed talk.

Of course, pay for performance doesn't work when the reward is already set in stone. Pay for performance also doesn't work when the reward is less than rewarding. And most importantly, pay for performance doesn't work if the measuring system is flawed.

The success of a maid service is directly based on the satisfaction of its customers. And since our employees' paycheck is 100% dependent on our customers satisfaction - we think that our "pay for performance" plan can be safe from any early retirement.

The TwoMaids Pay For Performance Plan Explained

No comments:

Post a Comment