I am working for a healthcare organization, we have a proposal for implementing pay at risk wherein a small percentage of base pay is withheld till the time of employee appraisal. If the performance of the employee is satisfactory then the employee is given the amount deducted earlier from the base pay and to the contrary if the employee's performance is not satisfactory then the employee loses the amount deducted from the base pay.
Can anyone tell me about the effectiveness of this compensation scheme, whether it has been a success, and the consequences if any?
Can anyone tell me about the effectiveness of this compensation scheme, whether it has been a success, and the consequences if any?