The benefits of differentiated pay

Properly calibrating pay differentials can avoid negative employee reactions
By Ken Abosch
|Canadian HR Reporter|Last Updated: 09/18/2015

Should an organization pay employees differently based on either the role they perform or the results they generate? The answer is an emphatic affirmative.

The notion of fairness quickly enters into a debate around the merits of differentiation, with different interpretations of what “fair” means. One version of fair is to pay everyone equally. This approach is not embraced by organizations that are committed to performance-based rewards.