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Linking pay to performance is a complex issue with various factors at play. While financial incentives can drive motivation, there are challenges in determining the
Linking pay to performance is a complex issue with various factors at play. While financial incentives can drive motivation, there are challenges in determining the appropriate metrics and timeframes. Negotiated pay for external hires, benchmarking against industry standards, and the lag between performance and compensation decisions contribute to a potential misalignment. Balancing short-term gains with long-term value creation is crucial. Assessing pay in relation to its impact on organizational stability and employee morale is equally important. Ultimately, a comprehensive approach, encompassing historical, current, and anticipated performance, alongside organizational worth, becomes indispensable for a robust pay-performance correlation. reply
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