Pay for Performance or Perform to Level of Pay?
We once had an employee who asked for a raise. I asked this employee's supervisor, "if he deserved a raise?"
He replied emphatically, "No!"
"Why did this employee not deserve a raise?" I inquired.
He went on the tell me how this employee had been underperforming in his job. The supervisor had had several "coaching" conversations with the employee about improving his performance. His response was, "If you pay me more I will work harder. I feel like I am working the level of my pay." This employee's performance did not improve. A few weeks later, this employee again asked for a raise and was denied.
He quit.
I'm not sure where this employee developed his mindset of working to the level he felt was proportional to his pay? In my experience, this is a unique thought process regarding wage-earning. Especially considering the following:
- He worked in the picking department before transferring to this "new" position. He understood our policies, procedures, and company culture.
- He worked from time to time at this position (while still working in the picking department) to learn the job before applying for the full-time position. So, he understood how to calculate the wages and the work required.
- His supervisor coached him on multiple occasions about his sub-par performance. He understood he was underperforming.
Perhaps his mindset was influenced by the previous two positions he held at our facility. He worked as a box folder and a picker. In each case, the job pays on a piece-rate basis. His speed or performance determined his wage. He was in control of how much he earned. I can only conclude that making the shift to an hourly wage proved to be too difficult to change this employee's mindset. If he had improved his performance, he would have earned a pay increase. What he failed to understand was that he still controlled the amount he made by his performance.