Some employees believe that a fixed pay package is much better than performance based flexible pay.

• What do you think are the advantages of fixed pay package?
• How good or bad is performance based pay?

Employees have several reasons to be part of any workforce, and the major two choices are fixed and flexible pay packages. Obviously, fixed pay offers several advantages to them. It does not mean that the other option is not attractive.

Looking at fixed pay package, the most obvious advantage is the work-life balance such employees happen to enjoy. This is possible because they are expected to get regular pay and a regular work pattern with minimum pressures and maximum free time. For example, an employer does not expect an employee with fixed pay achieve enormous targets or carry out Herculean tasks. Secondly, fixed pay package makes employees to lead a need based life. Thirdly, it is right to say fixed pay package is likely to increase according to service and periodic revisions.

On the other hand, what performance based pay offers are not worth going for either. Basically this option makes workers go the extra mile to make maximum productivity. This is beneficial for both the parties. Secondly, such employees will enjoy huge material achievements proportional to their hard work. Thirdly, they can decide on their pay, and depending on their needs and expected expenses they can manage their time. However, the reduced work-life balance and mounting pressures may lead to great financial outlays in terms of health and family risks.

Looking at both the options, I find it right to conclude that no matter what one selects, it is all a matter of attitude that is going to make some differences in an employee’s life. Fixed and flexible pays are advantageous in several counts.

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Ajaypeesdoc. 2.10.11