Tying Salaries to Performance is #1 Priority

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Who said cushy benefits truly made a difference in working-class America?

A new study conducted by the Society for Human Resource Management found that American workers were most concerned with tying their salaries back to performance. In other words, if they work harder, put in longer hours and are loyal, they should be compensated proportionally for their efforts.

A total of 783 companies participated in the study. Final numbers were tallied by Arthur Andersen.

So how fair is the dreaded performance review? Not very fair based on a low 15 percent of respondents indicating that they believe the review adequately meets their needs and captures their working abilities.

The upside? Andersen experts say companies must change their measurement systems and provide effective compensation programs in order to retain and attract employees for the long haul.


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