Monday, December 8, 2008

Salary Carrot Or Compensation

A subordinate comes to you and says the reason I am not able to give my 100% to the company is that I am not paid as much as I deserve. You think this philosophy is opposite of what it should be. One should get paid based on how s/he performs, and not get paid and then perform. On the other hand, higher pay could act as an incentive to bring out the best in people.
Who is right? Your subordinate or you?
Is salary a carrot or a compensation? Or both? Then how do you peg the salary?
Or is salary driven entirely by market? If your competitor can afford more salary (all things being equal) you match it.

You need to answer your subordinate so that he goes back satisfied and gives his 100% to the work.

What do you do?

What do you do?

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