Exploitation in business typically attaches itself to the negative definition of the term; the organization getting something from its people for nothing. For team members whose financial compensation potential is a product of a combination of bonuses, LTI (Long Term Incentive), and base adjustments makes this topic much harder to navigate. The conversation of tying individual contribution to business value to individual compensation is an abstract one and puts more of the risk on the individual than the organization. In these times where conversations about compensation equality and the Great Resignation are very top of mind, organizations should really consider how to adapt compensation to keep quality team members happy.
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Guaranteed incentive is good incentive This is something that professional athletes negotiate for all the time. While not nearly as dangerous, every career is finite and having appreciation for the confidence and stability that guaranteed incentives can provide 1) how much an organization values the individual and 2) reduces the need for other forms of financial incentives.
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Associate incentives directly to actions/outputs Short-term goals of an organization can change frequently. Being able to offer incentives based on the completion of specific items can help individuals know that their efforts are 1) always appreciated, 2) driven by business value, and 3) unaffected if goals do change over time.
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Regularly use the entire year to deliver incentives For many organizations, the performance and compensation lifecycle is typically [semi]annually driven. Knowing that these processes for managers are very time consuming this is understandable. However, just leveraging these times of the year to offer these incentives leaves a lot of the calendar open for individuals to be left to their own devices and therefore more open to listen to other opportunities.
Let’s work to change the business narrative around exploitation. Organizations and individuals have opportunities to work together to showcase what value they bring to each other, the skills that individuals leverage, and allow for earning to truly be shared in a timely manner.