Synergy Consultants are among the pioneers in India who had advocated linking of pay with performance and brought the subject on the centre-stage of HR debate.

It organized a series of Conferences as well as partnered with Hindustan times to present a comprehensive Benchmark report on the phenomenon. The report was published in 2002, across 3 pages of the Newspaper and generated a major debate.

It was called the capital idea of the decade.

A follow-up study was done in 2012 to evaluate the impact of linking-compensation-with-performance across different functions and industries. While there was a wide-spread agreement to the concept of extra-payment to reward exceptional performance, it was unfortunately, started being treated as an extra-compensation and its’ impact as a performance-enhancing incentive has declined. Most professionals were open to it as an “extra’ and were unwilling to trade a fixed-compensation with a variable.

Currently, the debate is on about the impact of paying incentives for enhancing performance. A recent study in HBR talks of marginal utilities in developed economies.

This year, Synergy Consultants is planning to conduct a specific empirical study in India to evaluate the concept and its application across different sectors.