Rethinking Value: Unpacking the Myths of Performance Pay and Employee Productivity
The discussion around performance management in large corporations reflects a broader critique of how employee value is assessed and compensated in today’s economic landscape. This discussion offers an illuminating dissection of the traditional frameworks that drive performance evaluation, remuneration, and the implicit assumptions held by employers about workforce management.
The Flaws in Performance-Based Compensation
The conventional belief that employees should be paid based on individual contribution is challenged by the claim that companies are primarily motivated to minimize wage costs. This notion hinges on information asymmetry—where employers can share salary data and keep employees in the dark about the true market value of their roles. As a result, the idea that employees are fairly paid according to the value they bring to a company is more theoretical than practical.