Paying for Contribution

Journal of European Industrial Training

ISSN: 0309-0590

Article publication date: 1 March 2000




(2000), "Paying for Contribution", Journal of European Industrial Training, Vol. 24 No. 2/3/4.



Emerald Group Publishing Limited

Copyright © 2000, MCB UP Limited

Paying for Contribution

Paying for Contribution

Michael Armstrong and Duncan BrownKogan Page1999ISBN 0 7494 2899 6£25.00

Keywords: Performance-related pay, Employees, Employers

Employee contribution is gaining recognition as the only long-term sustainable source of competitive advantage across most sectors of the economy. Organizations that have used performance-related pay to support the achievement of business goals are now conjoining more competency-related and market-driven pay approaches to this original concept. Employers are now paying for how results are achieved, as well as for the results themselves.

Taking reward management to the next level, Paying for Contribution looks at paying for competence as well as performance; paying for skills and behaviours that support the future success of the organization, not just for immediate past results.

The two authors, both experts in the field, demonstrate that today's organizations are taking a much more holistic approach to the issue, an approach they term "paying for contribution". The book draws out the major trends and future themes in contribution pay and considers:

  • strategic goals and reward strategies;

  • blending of competency and results;

  • team bonus plans;

  • employee communications and involvement in the creation of a high commitment workforce.

The book features many individual companies and detailed case studies as well as "how to" guidance to help readers assess, introduce and operate systems which can effectively relate pay to contribution. It leads the way towards the next generation of performance pay schemes.

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