The Decline and Fall of “Pay for Performance”

Prepared for the NWRPCA Quick Notes, the full text of this important critique of current methods of “pay for performance” appears in Merces’ general industry compensation blog, “The Compensation Times”

The Compensation Times

[This article was originally published for the Northwest Regional Primary Care Association “Quick Notes” and can be found here.]

Congratulations on your new hire. “Ron” looks to be a promising new employee. He came to you with a strong resume and enough relevant experience to suggest that he is the kind of employee you see as a long-term, steady provider. For his part, Ron hopes to enjoy his work, feel acknowledged, and be compensated in line with the value he brings to the company and his growing value in the external marketplace. Compensation isn’t the most important thing for Ron, but his emotional response to his compensation can set the tone on how we sees the organization as a whole.  He needs to know his contribution will be rewarded and be consistent with his performance, that of his colleagues performing at the same or different levels, and fair market…

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About Edmund B. Ura

Edmund B. Ura, MAIR, JD, works with governing boards, executives and human resources staff to develop methodologies for ensuring fair and equitable compensation programs that support achievement of organizations' missions. Contact Ed at
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