Question

“Performance-based pay is necessary to motivate and retain the best performers.” Do you agree or disagree with this statement. Explain your reasoning

Answer 1

Yes, it is true that “Performance-based pay is necessary to motivate and retain the best performers.” And I agree with his statement due to following reasons;

1. Performance-based pay will help in identfying the true & best employees in the firm that is why such talented employees will get true rewards for their contribution in the firm. And we know that when employees get true compensation for their work then such employees will be motivated to work harder and to be connected with such firm for longer time. Hence given statement is true.

2. Performance-based pay will also help in identifying the weak & under-performer employees and such employees will be motivated to work more harder to get true reward. Hence all employees will be motivated to work harder and firm will be in position to retain best employees and will motivate under-performers also.

3. Performance-based pay will help in maximizing the efficiency in the firm and ultimately it will help in minimization of costs for the firm. Such achievements will motivate the all employees.

4. Performance-based pay will help in maximizing the production of the firm and it will help in meeting the demands of the market and when firm is meeting all objectives then interests of the employees will also be achieved that is why employees will be motivated and firm will also able to retain employees.

5. Performance-based pay will improve the reputation of the firm in the market and best & motivated employees will be attracted to work in the firm. Hence it will help in getting new best employees for the firm.

6. Performance-based pay will help in retaining best performers due to true rewards for their work hece such employees will be motivated to work for such firm for a long-time.

7. Performance-based pay will improve the competitiveness of the firm incompare to other firm, hence overall profitability will improve. So in such condition existing employees will be motivated to work in such firm and new employees will be attracted to join such firm etc.