Success Characteristic Number 8 - Compensation: Compensation is perhaps one of the most hotly debated topics for owners and leaders. Commission, Team-Based Pay, fixed rate, sliding scales, product/service charges, or independent contractor, there is no one right way that will serve the needs of all. But when all the debating is done, compensation program must achieve three goals: 1. Inspire and reward the right performance and behaviors: If you keep rewarding performance and behavior you dont like … you continue to enable that behavior. Commission-based pay is notorious for rewarding individual sales while paying for performance and behaviors you dont want. 2. Fit the financial reality of the business: There are only 100 pennies in a dollar. Whenever payroll exceeds a companys financial reality, it instantly initiates a cash crisis that, if left unchecked, can be destructive and even kill the company. 3. Provide income growth for employees: The best companies provide employees with growth paths for income and achieving their full potential. It is up to both parties to make it work.
Posted on: Fri, 28 Mar 2014 13:49:10 +0000
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