April 2009
Your Letters
Compensation mechanisms
Thank you for Jim Pinto's commentary on compensation mechanisms (www.isa.org/link/PP_022609).
Pinto provided a good summary of the problem and hinted at the solution. It would be useful to provide some detailed examples of better compensation mechanisms. In my experience with human resource departments, the old compensation system persists because it is perceived as simple and less expensive to administer. Individual performance based pay is usually reserved for sales and management. The complexity challenge of administering individual performance pay for other knowledge workers has yet to be resolved.
Mark L. Bruce, Ph.D., TestAmerica
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