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Productivity vs Pay

Productivity vs Pay

April 16, 2021

As flexible working grows in popularity, many companies are looking at performance-related pay to ensure productivity but is this fair?


It’s clear that COVID-19 has changed the workplace for good, and many employers are now working hard to offer as much flexibility as possible to their teams. The great thing about this is that we can now work in such a way that we avoid the long commute and work from the comfort of our own homes, but this does leave questions about how employers can monitor productivity.


One solution is to bring in more performance-related pay contracts that measure individuals against targets, colleagues, and departmental goals – but how should we feel about this?


The Positive Aspects of Performance Related Pay

Many people view performance-related pay as a negative thing because they assume that their employer is out to save money and will work hard to catch them out. In reality, the majority of employers that introduce this model do so to enhance productivity and offer employees a clear framework to work within.


Performance-related pay is great when you have targets that are fair, consistent and achievable and to offer this, employers need to provide a system in which people can work to come up with fair targets and a route to success.


The Negative Side of Performance Related Pay

No matter how many positives there are, performance-related pay does require individuals to hit targets in order to maximise their earnings, and this is seen as a negative thing for employees that work hard. In reality, if you work hard to achieve your goals, you will probably have no issue with the targets you are set.


However, if your employer has not introduced a robust and supportive system to help people meet, review and amend targets over the course of the year, then things can become more difficult. This is why it is essential to get the answers to as many questions as possible before any new pay procedure is introduced.


What to Ask if Your Employer Pursues a Performance Related Pay Model

If you find yourself in a situation where your employer has decided to introduce a performance-related pay model, then it is important that you take the opportunity to get your questions answered before it becomes a reality. Some of the most commonly asked questions asked by employees include:

  • How will our targets be decided?
  • How much input will I get when agreeing on my targets?
  • How much of my pay will be performance-related?
  • What if I don’t meet my targets?
  • What if I exceed my targets?


Getting the answers to these questions will not just give you peace of mind about how to maximise your potential but will also allow you time to seek support from a union or workplace representative if any of the answers concern you.


Find Your Next Role With CMD Recruitment

If you want to find a new role and don’t know where to start, then take a look at our online job board and see what is on offer. We have a team of expert recruitment consultants who would love to help you and can provide advice and support so that you achieve success. Get in touch today and make that new job a reality.
01225 805080

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