EFFECTIVENESS OF PERFORMANCE BASED PAY IN RETAINING EMPLOYEES

Performance Management Systems (PMS) have become a critical framework for aligning individual employee
performance with overarching organizational objectives. Beyond evaluating past performance, PMS fosters
continuous improvement, engagement, and development, enhancing productivity and motivation. Pay for performance
is meant to solve the twofold problem of motivating high teacher performance while attracting and retaining good
teachers under conditions where their effort or ability is not readily measured or observed. Performance metrics for
university teachers typically fall into three core academic pillars, though their weights vary by institution type. Finally it concludes that as per Academic Performance of employees the management fix the pay and it leads to employee retention in the concern institution. Anyway hard-working, highly productive faculty members are rewarded
financially for their extra effort.