The managers' role was to control, and employees did as they were told. But most operating structures have changed. And so we need pay systems to reinforce and support these structural characteristics. It doesn't make a lot of sense to have a predictable, functional pay system in these chaotic days of cross-functional teamwork. In my opinion, both organizations and employees have to change.
Organizations have to be willing to share their successes.
If employees are asked to share the risks, then they have to share the rewards. This is happening at a time when productivity and corporate profits are steadily rising, and executives are continuing to receive huge salaries and bonuses, in many cases, regardless of their companies' results. Employee commitment to company success is not a one-way street. The days of loyalty and long service are gone, and companies must do a far better job of gaining employee commitment and decreasing the trust gap with their workforce. Organizations need to rethink how they view employees.