Reducing the Sense of Entitlement: Pay for Performance for 2010 and Beyond
August 4, 2009
In a recent Perspectives article, "Reducing the Sense of Entitlement: Pay for Performance for 2010 and Beyond," Myrna Hellerman and Jim Kochanski contend that the current pay-for-performance model has been squelched by an entitlement mindset. They suggest that organizations should:
- Replace merit pay
- Avoid reliance on salary ranges and market comparisons
- Use measurable performance to determine incentive pay, and
- Design long-term incentive plans that trade economic risk for rewards.