Asia is late to this trend of basing pay on performance. The shift to a pay scheme based on performance could hit workers with a double-whammy in the current economic climate. In theory, it should give workers the opportunity to get paid even more than before. If they work harder and sell more, produce more widgets or process orders faster, the company earns larger profits which fattens staff bonuses. At least this way, you may be able to avoid mandatory salary reductions.
People have a chance to make up the difference.
Mark Nechita is human resources director for FMC Asia Pacific, the Hong Kong-based regional arm of a chemicals and machinery producer headquartered in Chicago. He says the company has tried hard to implement performance-based pay in its 14 Asian offices just as it has worldwide. It's been harder to introduce in Asia, harder to implement. But, it is here to stay. Once workers become comfortable with it, the system works well.