“Most people focus on what measurement, not on how value gets created,” said Peter Ramstead, the CFO of Personnel Decisions International.
Pay for extraordinary contribution and performance is now a hot issue. The result is that fixed pay becomes a relic. Should people in the same job get the same pay when one worker may contribute more ideas and inevitably more value. We’re seeing variable pay plans that measure the right business things such as the ability to add Brand U value. This is especially important in knowledge-intensive businesses. What does this mean? A key business practice of successful Brand U organizations will be “paying top performers far more than average performers.”[i]
[i] Colvin, Geoffrey, “How to Get Your Head Around Measuring Midns,” Fortune Magazine, December 31, 1999, p. 335.