Blog 8

Tuh41241
Tuh41241
Nov 4 · 1 min read

Tying compensation to productivity seems fair so long as productivity can be accurately measured. This is easy to compare between people of the same job such as two welders. If you have two welders making the same weld in terms of quality but one welder can weld 25% faster should they not be paid more? I would say yes as they are giving the company more. How do you determine that across professions what should an accountant make compared to an engineer? I think that all things being equal you would have to determine the market average pay for an engineer and accountant. Then determine is the quality of work either outputs average? If one is performing exceptionally then perhaps they should earn more else you risk them finding another job. CEO’s who’s pay are linked to the stock of the company are provided an incentive to ensure that the company grows as fast as possible. That being said with a company that continues to perform at an exceptional rate would be wise to also ensure that the employees are also rewarded, this would serve to give them an incentive to keep the quality of work up.

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