I do not know how effective it will be to reduce an employee's salary to 25% and then introduce a performance-based incentive for him. Most of the human beings are sensitive to this issue (salary). So does not management/HR should consider this issue. Recently this has happened to my friend who is working in a multi speciality hospital as cardiologist. He was drawing a okay salary, but as a part of company's new HR policy all doctors' salary have been decided to cut 25% as part of implementing a new incentive system. My friend got agitated and he decided to quit the job saying that as he has already been underpaid and the new rules will affect his financial planning.
Dear friends, from HR perspective and from an employee's perspective I would like to hear your feedback regarding the above said situation. 9th March 2013 From India, Thiruvananthapuram