Human resource managers link payment to the employees based on the services which they offer as well productivity of the company. This payment is related on how the company will benefit from the service being given and how it would improve their operations (Mejia, Et al. 2007). For the purpose of this research paper I shall analyze on the pros and cons of linking such payments to objectives which are importance to the organization such as profitability, quality control and low turnover of customers.
Low turnover of customers mostly is as a result of poor services if they are not contented and they opt to seek the goods or services elsewhere. Low turnover of customers would be used to link pay which the employees would be paid less if there is less customer turn over. This would make the business profitable but the employees would be demoralized especially if the low turnover of customer is not of their own making such as low season (Heywood, 2006).
In conclusion this would work well especially for sales people who are paid on commission depending on their efforts to attract more customers. Such sales people would be encouraged getting as much customers as they could to earn more.
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