Performance-Related Pay Is a Bad Invention

For many years, a lot of directives tried and are still trying to find the best way to incentivize their workers. Until nowadays, no one could find the best way how to perform it. A lot of specialists look for the answer. It is very important to find the proper way how to pay the employers because it is the closest connection to them and their performance. To be précised, it is significant to find the best way to pay employers for their working performance and how this payment can motivate them to perform as well as they were doing or better.

The McGregor Theory ("X & Y Theory") says that there are two different types of workers. One the one hand, there are workers who don't look for any responsibilities in their jobs. They just want to know what they have to do and they work as much as they have to. On the other hand, there are workers who want to be part of the company's business and look for responsibilities. This kind of workers can be much more efficient than the first type, because they want to aspire to higher positions in the business and to obtain these objectives they work harder. So, it should be that these workers obtain higher salaries, and the company should attention to them.

Nevertheless, We should not understand performance-related salaries as responsibilities/ranking-salaries. It is not the same if your salary is higher than another employer when you arrange a higher ranked position in the company as the increasing of your payment because of your performance in the company. Many blue-collar workers are complaining about their salaries, arguing that their payments are to low, because they are doing the main performance of the companies they work for: basically, the production. Instead, the white-collar workers don't have such a direct relationship with the product and many of them are well better paid. However, their working performance in any of the departments they work (administration, marketing, HR…), are very important for the company, because the arrangement of the white-collars jobs makes it possible to sell the products to the buyers. Therefore, they assume a bigger responsibility concerning the company objective, and that could be the explanation why white-collar jobs are better paid than blue-collar jobs.

In my opinion, it's not fair to pay all the employers as they were all the same and their performance are equal. Some workers do

...