Analyzing HR Issues: Variable Pay and Performance-Based Incentives

This presentation examines two key HR issues: variable pay programs and performance-based incentives, as discussed in the context of a 'bias for bonus' article. The analysis reveals how variable pay, which ties compensation directly to individual performance, can negatively impact employee motivation, particularly when rewards are not perceived as fair or achievable. Similarly, the presentation highlights concerns with performance-based incentives, where rewards are contingent on meeting specific targets, potentially demotivating employees who do not consistently meet expectations. The study concludes that both approaches can affect staff motivation. References to relevant research support the findings. The presentation aims to provide insights into these issues, which are relevant to HR policies and practices in various organizations.

A bias for bonus :
what it means for
your paycheck

 The article is all about HR issues faced in
the workplace due to which organizational
productivity is affected.
 It is linked with providing bonus and
incentive to the staff members on the basis
of their performance.
 It directly influences their motivation level
and has both favourable and adverse
impact on company.
Descriptions of article

 In variable pay program no fixed salary is
provided to the employees and they are not
able to identify what kind of pay will be
provided for them for the work done.
 Moreover, it has adverse impact on
individuals who are unproductive as they
are not able to receive proper reward and
other form of benefits provided by
management.
Descriptions of article

 In the present report two HR issues have
been considered which are
 variable pay
 performance based incentive
Hr issues

 Through the analysis it has been found that
the variable pay program being considered
by the companies leads to decline in
motivation level of the individuals being
present within the workplace. Further,
variable pay totally relies on the work done
or performance of individual in the
organization. In case if staff member is
performing efficiently then more reward
along with monetary benefits are provided by
the management and vice versa
Hr issue 1 : Variable pay
program

 It is the another major HR issue being faced
by companies where incentive and other
type of monetary benefits are delivered to
the staff members on the basis of their
performance. Further, in case if
performance of any individual in company is
not up to the mark then it is not possible to
take benefit of incentive scheme introduced
by company
Hr issues 2: Performance based
incentive

 From the entire study the two issues
identified have supported in knowing that
providing incentive and reward on the basis
of performance affects motivation level of
the staff members. Further, in case if any
individual is unproductive within the
workplace then it is not possible to take
benefit of the reward system
conclusion

 Belfield, R. and Marsden, D., 2003.
Performance pay, monitoring environments,
and establishment
performance. International Journal of
Manpower. 24(4) .pp.452 – 471.
 The problem with Performance Related Pay.,
2013. [Online]. Accessed through
http://www.businesszone.co.uk/community-
voice/blogs/davidrjack1/the-problem-with-
performance-related-pay. [Accessed on 6th
April 2016].
References

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