Exposing the pay for performance myth (Guest Commentary)

Traditional merit increases evaluate performance through rear-view mirror
By John Cardella
|Canadian HR Reporter|Last Updated: 07/10/2015

Annual pay for performance systems are antiquated, wasteful and no longer serve a constructive role in rewarding or motivating performance. In other words, they’re bad for fostering engagement.

With wage or merit increases averaging in the two to three per cent range (with little differentiation) for the last 10 years, wage increases have become a useful hedge against inflation that further drives a sense of entitlement among employees.