Date: 2010-02-27 06:02 pm (UTC)
From: [identity profile] xquiq.livejournal.com
Poorly designed incentive systems don't work & they are incredibly difficult to get right.

What do organisations do with this knowledge, however? Taking a basic sales role in financial services, the base is likely to be relatively low. If an orgnisation removes the incentives (which may be substantial), do they then increase the base pay & by how much? How much will someone (who is probably fairly risk-seeking) be willing to sacrifice potential reward for certainty?

I'd be interested to understand what the media & the public would think about large increases to base salaries. I suspect the longer term incentives & clawback systems might be more acceptable all round.

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