Pay for Performance Research Paper Example | Topics and Well Written Essays - 500 words

Pay for Performance - Research Paper Example Therefore, effectiveness of pay for performance can be measured with surveys aims at findings about employee satisfaction and motivation levels (Gomez-Mejia, 2010). Furthermore, their on job performances and achievement of their goals may also help in knowing that whether or not certain pay for performance program is effective. Lastly, financial numbers and ratios, such as revenues, sales, expenses, profitability, operating income, profit margins, return on investment and others remain as major tool to measure their effectiveness. If any pay for performance plan is motivating employees but not adding to the financial success of the company then it is better for the company to revisit the plan and the processes (Schuler & Jackson, 2007). There are many advantages of pay for performance programs for the employees and that is why many companies opt for it. First, by paying employees for their efforts and performances, employers motivate them to improve their performances in order to ear n more (Gerhart & Rynes, 2003). Despite the fact that money is not the only motivator, it is biggest motivator, which means that employees are highly likely to work harder and bring more profits to the company to earn more.