Archive for January 19th, 2011

Variable Compensation-What Works and Why – Part I

Variable Compensation-What Works and Why – Part I
Before we start on “what to do”, let’s talk about “why we do it”.  Variable compensation can be used for any combination of the following reasons: Align employee financial return with company financial performance; Encourage specific patterns of behavior among employees; Share the “fixed cost risk” of compensation between employee and employer. For the purposes of a blog, let’s separate variable… read more →