Question

hi . please comment on pay-for-performance is a good compensation system, why and what types of positions and/or companies would be good to use this method with.

please use your own worlds I don't want any copy

THANK you

Answer 1

Soln. Pay for performance is a good compensation system based on the nature of services/goods produced by the company. This also depends on the numbers and nature of the roles being performed by the employees of the companies.

There are certain industries, like healthcare, where performance of the employee is very much critical and can lead to severe issues in case of inefficiency. Employees are also hired based on competent skills as required by the company. So, to review if the employees are working efficiently, pay for performance is a key process to motivate and ensure quality of work being performed by the employees.

On the other hand, there are certain industries like a small start up for food delivery. In such companies, employees are not very much assigned work based on their skills and hence paying based on performance, may not be an effective parameter for employee's benefits. It may lead to promote employees for skills, which he or she is not trained of.