A flat rate pay demotivates hard workers who perform well. In fact all pay must be based on 70% performance based and 30% fixed pay (this percentage can vary depending on the negotiations between employee and the employer). Flat rate means socialism and socialism is an evil invention of the capitalists to make people lazy, dumb and unfit for change.
The problem arises when companies are unable to link performance to pay clearly. For example: In pay for performance affiliate marketing , tracking can perfectly be done till the last dollar. But this is not possible in employee performance. There are some areas where performance can never be converted into metrics. For example: An HR’s work can never be linked to a metric. In these cases, alternative arrangements should be made.
An economics professor at a local college made a statement that he had never failed a single student before, but had recently failed an entire class. That class had insisted that Obama’s socialism worked and that no one would be poor and no one would be rich; a great equalizer.
The professor then said, “OK, we will have an experiment in this class on Obama’s plan”. All grades will be averaged and everyone will receive the same grade so no one will fail and no one will receive an A (substituting grades for dollars – something closer to home and more readily understood by all).
After the first test, the grades were averaged and everyone got a B. The students who studied hard were upset and the students who studied little were happy.
As the second test rolled around, the students who studied little had studied even less and the ones who studied hard decided they wanted a free ride too so they studied little.
The second test average was a D! No one was happy.
When the third test rolled around, the average was an F.
As the tests proceeded, the scores never increased as bickering, blame and name-calling all resulted in hard feelings and no one would study for the benefit of anyone else.
To their great surprise, all failed and the professor told them that socialism would also ultimately fail because when the reward is great, the effort to succeed is great, but when government takes all the reward away, no one will try or want to succeed.
It could not be any simpler than that.