As a background checking concern, we have a number of clients in the advertising business. As such we keep an eye on the industry in general and look for any trends and changes in the overall environment. We found this story in Advertising Age pretty interesting as it addresses a new means of compensation. Employees are compensated for their performance. Or, as one executive puts it, it is good that they have some skin in the game.
This new perspective on employee compensation comes as a result of the Recession. The economic downturn seriously rocked a good many ad agencies as many clients had reduced their advertising to a minimum. So now as the advertising industry claws its way back from a bad economy the agencies are taking another look at how their employees should be rewarded.
Of course, there is the issue and concern with how exactly to best evaluate employee performance. Executives are reviewing different metrics, different criteria, but there is no actual reliable standard as of yet. But as this pay-by-performance model moves forward, it is something worth observing. It wouldn’t surprise me if other industries instituted similar models.
Meanwhile, check them out before you hire.
