Why a Merit-Based Pay System Fails & Better Alternatives
July 31, 2018
A merit-based pay system seems like the perfect solution—reward high performers, encourage productivity, and eliminate wasted salary expenses on underperformers. The idea is simple: employees motivated by financial incentives will work harder to earn bonuses or raises, while those who don’t contribute won’t see an increase in pay. Logical, right? Unfortunately, business reality doesn’t align […]
How to Create an Effective Bonus System That Benefits Everyone
December 30, 2011
Bonus systems must be designed as a win/win/win—a win for the team member, a win for the boss, and a win for the client. For your team, a bonus must be clear, achievable, and based on factors they can influence. For the firm, the bonus system should improve profits, reduce costs, or save time. And […]