Data shows that around 83% of companies with pay-for-performance plans say these programs are only somewhat successful, and only 28% of the 2,600 surveyed said their employer’s incentive plan motivated them (TEXTBOOK). Experts believe that employees may not see a connection between their pay and their performance and that their performance is not affected by their employer’s incentive plan (TEXTBOOK). The objective of a good pay-for-performance plan is for the organization to hire good employees and maintain a low …show more content…
Changing the way an employee is paid will not be helpful if there are other problems within the company, such as communication and morale. An accurate performance diagnosis should be completed to determine if there are any problems by examining the organization, it’s processes, work teams, and individuals (Swanson, R. A., 2007). If it is determined that employee performance would benefit from an incentive pay plan, and all other areas within the organization are sufficient, the company should proceed with instating