It is not always appropriate to link pay to performance.

Question

Quizplus · Accepted Answer

While pay-for-performance programs can be effective in certain situations, there are also instances where linking pay to performance can have unintended consequences or may not align with organizational goals. For example, in jobs where performance is difficult to measure or is heavily influenced by factors beyond an individual's control, pay-for-performance may not accurately reflect an employee's value to the organization. Additionally, if the performance metric used is narrow or flawed, it could incentivize employees to focus on those metrics to the detriment of other important aspects of their job. Therefore, it is not always appropriate to link pay to performance.

It Is Not Always Appropriate to Link Pay to Performance