Performance Based Compensation Transformed

For the past 30 years I have worked with clients who wanted to create a way to ‘pay for performance’. Basic wages, or salaries are paid for achieving expected results using resources present. Extraordinary performance is using current resources to create new levels of performance. It is this level of performance, that most business owners want their employees to achieve. In order to raise the level of performance to the extraordinary level the business owner needs to reframe the context within which the employees operate. The employees need to change the way they think and work. The reframed opportunity is to change the employees minds about their job. They have to decide that optimizing the resources at hand is a part of their job. Until this happens any formal  ‘pay for performance’ model or formula will probably fail.

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