Unequal Pay And Perks Crucial For Productivity
May 1st, 2009
Treating top performers the same as weaker ones is being called “strategic suicide.” HR researchers at America’s Rutgers University say the current vogue of slashing perks and pay is managerial insanity. They say the tendency to treat everyone the same is “misguided and absolutely the wrong approach.”
They argue it is like an airline sticking its platinum passengers in economy class with scratchy blankets and shrink-wrapped food. Once the good times reappear, disenchanted top players will bolt for better treatment and more pay. Companies sticking with the status quo will “pay dearly.”
Companies which have taken this onboard are giving steerage treatment to mediocre players-and business-class benefits for superstars. They want to look… after the people whose positions and performance are making their companies the most money. Paying for extra benefits for top players in hard times is tough, so some companies are stealthily freezing or cutting pay for some to reward others.
Experts say what we are seeing is the emergence of a “Darwinian workplace” with the best – the strongest – reaping more rewards then the under-performer – the weak. And there’s no bluffing about who’s best anymore, with sophisticated software measuring all aspects of employee performance.
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