Nov 5, 2007

Reward or Performance

My friend Udayan Dutt asks a very interesting question on Linkedin:

What comes first - Reward or Performance? In other words, do I ask employees to improve performance before a quantum leap in reward or do I commit a quantum leap in reward and ask employees to promise superior performance?

The question focuses us to think about performance and its context for people's pay and rewards. It is usually assumed that performance management is linked to pay only. When I see this question my intuitive answer is performance comes first. That's because performance is determined by the job role, the competition, the other employees in an organization. Getting people to focus on reward first for performance to take place, seems a misplaced priority.

What do you think? Check out the other answers to the question. Interesting insightful stuff on how people think about rewards and performance.