Some corporate salary programs are rewarded for experience and not based on performance. How we measure success is sometimes shown to those who have been in their positions and not for how well they have performed. It creates and fosters a culture that is not conducive to a positive work environment.
For Example, Judy has been servicing the same facility for 10 years. She is a run-of-the-mill manager; and based on her last three years of progress reports, she has been adequate. Her pay is $150,000 per year based on seniority.
Mary has been with the same organization managing a different facility for the past three years. Her performance as seen in her reviews has been excellent. Her salary is $120,000 based on seniority.
Neither employee is compensated for their performance.
Too often we reward people for being average. We keep them with the company because it makes a stable work environment and as long as it is not bad, it is okay. There is also an understanding that employees (people) are providing for their families and well-being; they may be a friend or simply a colleague we enjoy working with.
So, who cares if Judy is average? Mary does. She is doing the same job – only better while being paid less.
We need to work on changing the system. Paying someone based on performance is an objective measurable. If we attach the objectives to data and spread them over other sustainable variables, then we create a system that rewards employees on doing a great job. We can still compensate employees for their tenure with the company, but we are also rewarding a culture values excellence.