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It is my fervent hope that the lack of comments on this extremely important post is only because everyone understands it and agrees with it. Also, this would be a wonderful link to forward to anyone who might doubt the vital importance of pay for performance and the proven value it can add to an organization. Anyone who has different opinions should be sent this link and invited to review the proofs in it and its related posts elsewhere.

Thanks, Jim.

Nothing but crickets so far. We shall see!

Sorry, Ann. That research you cited was incomprehensible and unconvincing. It was a working paper, not research published in a journal with peer review. You usually have better support for your views, IMHO.

Also, this piece of new information---"both low and high performers are generally more likely to leave an organization than are average performers"-- is well known in HR. I can understand why the research has not been published.

Herb:

I appreciate your thoughts and your reaction to the post.

Although I am no PhD, I did read through the entire research paper (I typically do this before I cite anything). I did not find it incomprehensible or unconvincing. Not being a PhD, I guess I can't claim to judge it with the same degree of acumen that an academically-oriented peer review process would. I judge it mostly by whether it seems to hold water from the point of view of someone like me, a mere practitioner. I thought this one did.

And since many of my views are supported by nothing more than the fact that they reflect my own work experience and beliefs, this seemed to be worth passing along!

I don't think I claimed that the last piece of information was "new". Although, based on the reaction I've received sharing it with a few colleagues and clients, I'm not sure I would agree that it is well-known. Or at least not very well-considered.

Thanks, nonetheless, for your taking the time to share your thoughts Herb. Helpful and interesting feedback for me!

You need a PhD in statistics to understand the referenced research study.

The study cited above used employee data from 1980s from one company, and is not generalizable beyond that setting. You need many studies with a variety of subjects before you can draw general conclusions, as was done here.

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About The Author

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    Compensation consultant Ann Bares is the Managing Partner of Altura Consulting Group. Ann has more than 20 years of experience consulting with organizations in the areas of compensation and performance management.

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