Mike Andes explains and advocates for Pay for Performance (P4P): compensating employees based on their productivity, efficiency, and profitability for the business rather than length of service. He contrasts high-performing new hires who hustle and generate more revenue with long-tenured employees who may be less productive, and questions why better pay should require many years of tenure.
That is what P4P is. Pay for performance is a way of paying your employees by how hard they work and how efficiently they work and how profitable they are for the business instead of just how long they clocked in. Whether or not you need employees more so you bump up the wages more. Whether or not you know somebody that we work for 15 years with the company, how is that fair that someone who's just worked with the business for 15 years makes more money than the person that just got started two weeks ago but hustles, shows up really early, is educating themselves, makes twice as much money for the business, doesn't spend 45 minutes at lunch taking a nap and then 15 smoke breaks and 48 bathroom breaks and three lunches and siestas throughout the day. These are the employees that deserve more money. But why does it take them 15 years to earn it? Why should you have to stay out of business for 15 years in order just to get a half decent wage?
