Compensation Plans vs Employee Emotion
Compensation plans attempt to motivate employees to greater productivity at an affordable price for the company. Unfortunately, they run afoul of psychological factors that blunt their impact. Employees are human, and look at relative compensation with a crazy mix of their own needs, their perceived self-worth, and how they weigh the output and effort of those around them.
Here are some of our thoughts on the topic, published in a recent ezinearticle.com post.