Who said, “Pay for performance plans can’t work in every
For decades, people have said that certain professions
could not be paid based on performance. The basis of the
argument against pay for performance was that you can’t
measure individual performance. I have not found this to
be true, but many people continue to argue this point.
However, at the very least, you can measure the impact of
collective performance. And Kent State University has
proposed such a program in its latest collective
bargaining agreement for its faculty.
Kent State has created a “Success Bonus Pool” that will be
divided among faculty if the University (1) improves
retention rates for first year students, (2) increases the
research dollars it generates, and (3) increases the
amount of private money it raises through its foundation.
HR CONTRARIAN POINTER: My hat is off to Kent State.
Rather than creating a pay for performance program that
pits one professor against another or one department
against another, it has created a program that is in
essence saying, “If the University wins, you will win
because we will be sharing the rewards.”