The Right Compensation Model

Structure Pay To Fit Culture

There's no one compensation plan that works for every company. Harnish said the key is matching the structure of the compensation plan with a company's culture. Some companies, for example, might emphasize commissions and bonuses over salary to encourage individual employee efforts (such as a sales representative) and even to spur competition between employees. But if teamwork is the goal, straight wages is a better approach. And look beyond wages when thinking about compensation plans. Rather than a bigger paycheck, some talented people may value additional time off, sabbaticals or other non-wage compensation.


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