There is an easy solution to this Will

Economists have long argued for this flexibility in pay over the economic cycle – remuneration going down when times are hard and going up when times are good. Pay takes the strain rather than jobs. The difficulty has been persuading workers to accept that cuts in their pay are fair.

What you do is split pay into two parts. There\’s base pay, something that exists in good times and bad, and then you add a bonus to pay when the times are good for the organisation as a whole.

The problem is that you don\’t like that either, do you?

4 thoughts on “There is an easy solution to this Will”

  1. As long as people insist on thinking about pay in terms of “fair”, you’re in trouble – you’re limited to thinking at the intellectual level of the playground.

  2. To encourage the wider adoption of this “easy solution” an earlier government introduced tax advantages for conforming profit-related pay schemes. Can anyone recall Will’s stance when Gordon scrapped it?

  3. Actually I know a few people who were “offered” negative pay rises…

    It happens often enough but both companies and employees are not so keen to publicise it.

  4. Does everybody / most people work for companies these days or are there still some lone rangers?

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