Pay, Motivation, And Performance Management [Archive.org URL]

Ever since companies decided that maybe they should measure how their workers are doing and give the better performers a raise, employers have married employee performance appraisals with annual salary reviews.

Within a short period of time, the argument began over whether the two should be linked and, if so, to what extent. One facet of that ongoing debate is whether the size of pay increase differences make a difference and whether increasing pay for good performance is a motivator for even better work the next year.

The questions become 1) is pay a motivator? and 2) should performance appraisals and salary increases be are forever linked, or that should they be totally remote from each other?

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