With the economy still in a slump, some companies are freezing pay raises or even cutting pay for some employees so they can offer substantial raises to people considered star performers. As a motivational technique, does this practice seem like a good one to you? What might be some disadvantages of this technique?

Question

Business

Juan Mann

3 December, 23:18

With the economy still in a slump, some companies are freezing pay raises or even cutting pay for some employees so they can offer substantial raises to people considered star performers. As a motivational technique, does this practice seem like a good one to you? What might be some disadvantages of this technique?

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Answers (1)

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Bunny · Answer 1

The strategy is not motivational

Explanation:

The strategy is not motivational because it is only motivating a few "star performers" at the expense of the majority of employees, and even worse, during an economic recession.

The majority of employees are likely to be in great economic hardship already to take a pay cut in order to make way to pay rises to a few people. This could even result in a worker's strikes in case the company is unionized.