Disadvantages of performance pay system

The salary standard and development between subsidiaries and branches are unbalanced.

Because the performance pay standard of the same post has been in different units from the beginning, the gap is getting bigger and bigger on the basis of different starting points, and the annual growth rate is also fast and slow, resulting in the psychological gap and imbalance of employees. If it is not coordinated and controlled, it will lead to unreasonable inequality or even disparity, which is likely to compare with each other, contain each other, destroy each other, lose harmony with people, and greatly affect the promotion and development of the company's overall strength.

Performance evaluation lacks scientific basis and standardized operation.

Performance management sets performance salary standards by evaluating the performance of employees and the performance of teams and organizations, and tracks, assesses, feeds back and analyzes the performance gap, so as to improve the performance of employees, thus improving the management level and business performance of enterprises.

Performance appraisal is subjective and arbitrary, and it is a mere formality.

First, the performance design assessment standard is large and general, which seriously deviates from the job function. The terms of the evaluation are vague and the contents are similar. There is little difference in the assessment contents of different types of departments, and the pertinence and adaptability are not strong. The standard itself is full of loopholes, which will inevitably lead to the subjective arbitrariness of appraisers' judgment.

Secondly, the assessment methods are unreasonable, the assessment standards are unstable, the appraisers are influenced by subjective factors, the assessment level is not high, the assessment implementation is not rigorous, there are many artificial manipulation components, and the assessment results are controversial, which makes it difficult to convince employees and make the assessment a mere formality.

There is still equalitarianism in performance distribution in horizontal comparison.

Horizontally, it can't reflect the difference of different performance in the same position. Job functions are performed by people, and people's abilities are strong and weak, and the same work is good and bad, so there is a gap between the level and effect of performing job functions.