New challenges in pay for performance

Workers who at one time would have been disciplined are now being rewarded because of tight labour markets
By Shannon Klie
|Canadian HR Reporter|Last Updated: 08/14/2007

Pay for performance has had its share of detractors. Common criticisms include that it can foster an individualistic culture or a culture of entitlement. But the hot labour market in the West is creating new problems for pay for performance, according to a managing partner at HR consulting firm Cenera.

In Alberta, the quality of work that would be have been deemed “poor” 10 years ago is now considered “adequate” because employers are desperate for staff, said Bruce Green.

“These people are still being rewarded in salary increases or performance incentives when 10 years ago they might even have been put on discipline,” he said.