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The Right Compensation Model

Business expert Verne Harnish offers tips for finding and retaining talent by developing a successful compensation plan.

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Don't Adjust Too Often

Citing research done by author Jim Collins for his book "Good To Great," Harnish said many companies are constantly changing their compensation plans as they try to grow. That can cause confusion and even resentment among employees, hurting productivity along the way. That's not to say an executive shouldn't ever tweak a company's compensation strategy. But Collins found that great companies tend to establish a compensation system and then leave it alone.

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