Pay for Performance, does it really pay?
Filed under: Work
My current employer (which shall remain nameless until they piss me off), has decided to change its pay practice to what they dubbed Activity Based Compensation. In short, no longer will we be paid by the hour but paid by how much we produce.
I am currently employed by an outsourcing company that provides IT and HR solutions for its clients. My division supports the IT and desktop support for what may be the most well known company in the world (they too shall remain nameless).
The term that sticks in my head all during the introduction of this is Pay for Performance. Numerous online searches have returned a lot interesting reading, none of which seem to be promising.
I had stumbled across one such article posted on Monster.com which had some interesting quotes.
One article I had come across (which I cannot find for the life of me now) tells of how HP had tried this in 1996 and reverted back after three months. By that time the damage had already been done. They lost some of their best employees and had brought moral to a new low.
We are an IT helpdesk, we cannot predict how many calls we are going to receive, yet we are going to be paid per call taken, no more, no less. The great part is that they have not yet determine the dollar amount per call and it may change over time.
Persons that had been with the company for many years that had been making more then a person like me, will now have to work harder to make the same as they had done last year.
So far three people have given notice and more are expected. Stay tuned!
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