In the rush to reengineer, implement TQM practices, form teams, and embrace other popular business strategies, most organizations have overlooked a critical component of successful change: how they pay their employees. Even though their responsibilities and corporate environments have undergone radical changes, most employees are still paid in the same ways they were paid twenty-five years ago. Thousands of companies still dole out annual merit increases and determine pay levels on the basis of employees' knowledge, length of service, number of direct reports, and rank on the organizational ladder -- values whose relevance has faded in today's flatter, faster, more flexible business environment. Now The Hay Group, which for the past forty years has set the standard globally for effective pay strategies, has addressed this important issue -- and once again has rewritten the rules for pay. People, Performance, and Pay identifies today's four most common organizational...

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