Working Paper
Pay System Change: Lag, Lead, or Both?
Changes in an organization's pay system are usually high visibility, high impact and difficult to execute. As a result they are often considered "hot" change levers that potentially can derail as well as support an organizational change effort. It is precisely because of their impact that it is appropriate to ask when and how they are best deployed as part of an overall change effort. The two preceding papers make important points about the advantages and disadvantages of making reward systems changes at different points during a change effort. I find the arguments of both Ledford and Wruck convincing but not necessarily as conflicting as the authors' strong advocacy of their positions suggests. The discussion of pay and organizational which follows will, I hope, make it clear why I have reached the conclusion.
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