|
|
Article: Variable pay: linking salary to performance. (part 1)
- Article from:
- Modern Casting
- Article date:
- September 1, 1994
- Author:
CopyrightCOPYRIGHT 1994 American Foundry Society, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
|
With the slowdown in the economy in the early 1990s, American business attempte to bring its ever-escalating payroll costs under control.
Cost-cutting programs included hiring freezes, downsizing/layoffs, lower raises and pay freezes and reductions. While these programs helped curb payroll costs, they didn't accomplish the goal of linking employee pay to organizational/individual performance. Increasingly, many believe traditional pay programs are not productivity related and that they simply continue to driv up the cost of doing business.
One approach to paying employees that both reduces fixed payroll expenses and creates a more direct link between pay and ...