Performance-based pay is actually a good idea, IMO, and not just for the aviation industry. It requires employees to demonstrate accountability and responsibility.
Hi Beth, Yes, and no... I've experimented with this at another company I once owned, and you'd be amazed how quickly loopholes form. If there is a will, there is a way. The incentified parts of the "program" improve, while the non incentified ones suffer.
It is hard for me to relate it to aviation, since I dont work in aviation, but in my instance, I owned a warehouse, where orders had to be packed and shipped to our clients.
We started to incentify people by paying them for "on time" production. A few weeks later, we discovered that employees were burying the "larger orders" (the ones that made us the most money), because they prevented the employees from getting the best incentives. So then, now you have to create a policy to equally distribute the larger orders...
I guess it could be something like... An airline pays the crew for an on time departure, but if they are going to depart late, screw it, they already lost the on time bonus... That type of deal. Or the crew is bonused for a clean aircraft, but they learn that the managers never look in the seatback pockets... It would only be a matter of time before all the garbage was put there...
The only way an employer can offer the BEST QUALITY product in today's day and age is, they have to be able to get rid of non performers. No excuses... bad attitude, bad morale, no job. Thats it. Otherwise, they just prolong the death of the company...