pay according to performance
NWC linked pay hike with productivity The NWC recommendation suggested that employers should pay employees more when there is an increase in productivity. I think this is a bit tedious to compute. An easier way will be to commission a salary survey on comparative wage levels and then adjust the salaries accordingly when they are found to be lower than the market. It will be more objective and impartial if done by a neutral party. This is especially effective and applicable when productivity is very difficult to measure. And sometimes the lower productivity or performance could be due market forces or events beyond the employees control. And at the lower level, their performance will often be affected by many more factors, including those of their bosses.