When designing employees compensation it is important to understand the Risk vs. Reward concept. Employees, due to human nature, would always prefer the employer to take all the risk, while they receive all of the reward. Click the buttons below to move the RISK and REWARD controls. Think about the right and wrong ways to approach risk and reward.
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RISKEMPLOYER: 100% EMPLOYEE: 0% REWARDEMPLOYER: 100% EMPLOYEE: 0% |
Unbalanced Compensation PlansUnbalanced compensation plans lead to friction |
Balanced Compensation PlansA balanced Compensation strategy requires |