TITLE : SALARY ADMINISTRATION. 4TH ED.

Earlier editions of this book have met that evolving need - for both generalist and specialist - and my purpose now is to provide that service once again: for the concerned line manager, for the personnel generalist, and as a straightforward overview for the specialist.

'Pay for performance' has flourished because confidence grew in managers' ability to distinguish the exceptional contributors from the ordinary. Search firms sought out these exceptional performers. Competition for their services boosted the remuneration offered to them. Managements accepted the differentials over pay for ordinary levels of performance and were prepared to justify their actions, thus stimulating others towards higher achievement and rewards. An improving tax regime assisted the process.

'Creative compensation' flowered briefly, leading some organizations to develop exotic packages, both to minimize tax and to conceal the scale of their remuneration anomalies. The exotic is ephemeral, and of no more than passing interest. A more open and direct approach is in keeping with the times.

The theme of this fourth edition is paying for performance: how it works, and the practicalities of making it work effectively in any organization. Theory must give way to pragmatism as practising managers want a combination of logic and acceptability, and a fair degree of simplicity in their approach to pay. They are likely to be very aware of the market value of their senior and key people, and of individual responses to potential bonus earnings on top of salary. Properly thought-through pay strategy will give them an additional edge over their competitors.

Gordon McBeath