Pros and Cons of Linking Pay to Performance
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What are the pros and cons of linking incentive pay to individual performance? How can organizations address the negatives?
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Solution Summary
This solution explains the pros and cons of linking incentive pay to individual performance. A detailed explanation of how organizations can address the negatives is also provided.
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One of the biggest problems, which is a major con to linking incentive pay to individual performance is that it creates a potentially hostile atmosphere. Employees want the incentives, and they know that the incentives bring larger amounts of pay. ...
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