Why so many pay-for-performance plans are a flop.
By August Aquila
Creating the Effective Partnership
Many of us, including myself, thought that the right compensation plan would solve the answer to underperformance and motivation. Over the last ten years or so, firms have moved from a formula-based plan to a pay-for-performance plan which takes into consideration, production, business development, value enhancement and behavioral factors. And, while this has helped place more emphasis on performance, it hasn’t been a magic bullet. Why are so many firms still missing the boat when it comes to motivating partners and staff to perform at a higher level?
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Janice Kaplan, in the new book, “The Gratitude Diaries: How a Year Looking on the Bright Side Can Transform Your Life,” refers to a survey on gratitude in which some 80% Americans say that receiving gratitude makes them work harder, but only 10% of the survey respondents managed to express gratitude to others on a daily basis.