The Right Compensation Model

Fewer People, Paid More

The argument here is that by paying fewer, more talented people a company can boost productivity more effectively than a company that hires more people at lower wages. Harnish cites such examples as financial services company Goldman Sachs and retailer The Container Store, which report higher productivity by paying higher wages to attract higher-caliber workers. This strategy also helps resolve one of the biggest challenges many small companies face: attracting and retaining highly talented employees.


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