Pay on performance - Blah!

Yeah, it's common sense. It's boring. It's not sexy. It's not earth-shattering. But, it's vital. Pay on performance. What a concept--yet, a concept nobody seems to use. When you pay based on performance, it sends a message. It tells your employees that you won't accept mediocrity. You send subconscious signals that you'll reward the brightest; the ones, then, who don't contribute, fall out. Pay on perfomance. Easy. But, not too many companies get it. They're paying on wages. On fixed salaries. On bonuses that didn't tie into performance. It's as if you're rewarding Michael Jordan the same as you would a third-string player who averages 2.1 points per game. It doesn't stop at employees. The same concept applies with leaders, senior managers, etc., etc., etc. If they're not performing, why are they getting paid? Yes, money will not motivate people to higher performance. But, it will send clear signals to people who belong in the company--and those who belong elsewhere. Yet, not too many companies get it.

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