In the United Sattes the Classification Act of 1923 mandated that pay was based on performance not qualifications, a practice that made sense when the workforce was largely clerical.
[4] Their reasoning in keeping this system in place is related to the need for "fair managerial control", a battle many managers are striving to win.
In some cases employees are required to fill out large amounts of paperwork and go to a formal job evaluation panel to discuss their positions responsibilities.
However, existing nurses who were still stuck on an older pay band felt that this was neglecting their right to a raise and left them on the back burner.
[7] Parish says in his portion of the Nursing Journal that "We will be looking for something that is a significant inducement to new recruits, one that will ensure qualified staff stay in the professions.
RCN's Head of employment relations, Josie Owen, acknowledges that a "group of staff in the NHS has overplayed certain factors to get higher grades.
"[10] Oftentimes teachers that want to be paid more are pushed into primary and secondary administration, opposed to being chairs of departments like advanced educational opportunities like colleges.
It is important to note, that paying for performance does not entail: how many students pas the standardized tests, move to the next grade; but rather a secondary tool of employee evaluation.
In 2011, the Chairman of the United Kingdom Treasury Select Committee in wanted the Financial Services Authority to reveal the salary of bankers in Britain.
Andrew Tyrie, who was the chairman of the Parliamentary Committee, demanded Sir David Walker's idea of bankers who receive over 1 million euro annually should have their wages revealed to the public.
[11] Examples of employers using the pay band method of compensation include: Corporation like Northern Telecom, General Electric, and Data General have adopted pay bands to promote teaming and lateral development to take away from hierarchical movement within the workplace.