Cautionary tale on compensation rescinded

Hard lessons from latest saga at eHealth relevant for private sector
By Claudine Kapel
|Canadian HR Reporter|Last Updated: 07/18/2011

The eHealth Ontario compensation saga is a tale of promises made and rescinded that highlights how even well-intentioned pay decisions can have unintended consequences, if not handled with care.

And while this particular tale unfolded at a government agency, the themes are relevant to anyone involved in making compensation decisions.

The abbreviated story is hundreds of employees at eHealth, an agency set up to manage Ontario’s electronic medical records, were promised merit increases and bonuses in recognition of the progress made in turning around the troubled organization. (For more information, see “Pulling back bonuses has its perils: Experts.”)