For someone who has always been in the sales industry, the news from the Wall Street Journal that businesses are moving towards a performance-based pay model for all employees doesn't come as a daunting surprise. As a sales professional, that has always been the reason to stay that little bit later, to work that little bit harder, because the more we put in the more we get back in return.
The article outlines that in 2018 more businesses will change how they pay their staff:
- If you are top performer you will get more money
- To incentivise performance creates a more competitive culture and ultimately a higher performing business
- If you work hard and go the extra mile there will be more opportunity for you
Increasing the payout for top performers and decreasing the bonus for those that under-perform is the best way to keep hold of your best people. This will polarise opinion and I will be interested to see which of my clients will "buck the trend", like AppNexus.
Unless you are one of the highest performers at the office, don’t expect next year’s paycheck to grow much. Businesses are planning to keep budgets for raises relatively flat in 2018, while continuing to devote more payroll dollars to performance-based pay, according to a survey of salary planning at 1,062 organizations conducted by consulting firm Aon Hewitt.