A Case study of pay-for-performance compensation programs

A well conceived pay-for-peformance program that aligns measurable financial and non-financial results with the companies publicly stated goals can create synergy in regards to productivity, efficiency and competition. The problem with some pay-for-peformance programs is that they can be poorly conceived, measure outcomes improperly, administered inconsistently or reward an unethical result. A balanced scorecard approach to pay-for-peformance programs can measure both hard and soft metrics that lead to both company and manager/employee success.