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How to pay for performance in a down economy.

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How do you Pay for Performance in a downward economy? Suggest a start point with relevant issues that may relate to this topic.

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Solution Summary

The downward trend of the economy and the additional costs to maintain health care programs combined; have forced Chief Financial Officers to take a real hard look at traditional pay for performance programs in their organizations. The days of the automatic 3% increase across the work force that were common practice up through 2007 in the United States have come to an end in most industries.

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How do you Pay for Performance in a downward economy?

The downward trend of the economy and the additional costs to maintain health care programs combined; have forced Chief Financial Officers to take a real hard look at traditional pay for performance programs in their organizations. The days of the automatic 3% increase across the work force that were common practice up through 2007 in the United States have come to an end in most industries. Data taken in 2010 suggests that the trend of company pay freezes from the executive level down through the work force is on the rise with some 60% of companies surveyed responding that they will either stop pay increases or will reduce current pay rates to weather the economic storms (Mercer, 2011). ...

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