Comments on: Why You Should be Using A Performance Based Salary Program

By: SEO Canada

SEO Canada — Fri, 01 Feb 2008 06:24:00 +0000

I’m a born fan of commission based salary as well That and working myself to death with side work…

By: Search Marketing Workweek: Thursdays | Gonzo SEO

Search Marketing Workweek: Thursdays | Gonzo SEO — Thu, 24 Jan 2008 18:59:45 +0000

[...] might look at you a little strange, but it will make you more productive which can lead to that performance bonus you are working towards. Here is a great resource for stretches you can do at your [...]

By: pratt

pratt — Fri, 11 Jan 2008 03:11:08 +0000

Rand – I read through the article again, and I keep debating myself with their points. I can understand the fear that you might lose important activity from your employees (like researching new tools, etc.) I can see how you might be playing with fire, but it seems like one of the better solutions to keeping or recruiting top talent.

As a business owner, what have you noticed?

By: pratt

pratt — Fri, 11 Jan 2008 03:02:17 +0000

No need to apologize, Rand, it’s a fair argument and a good article. However, the performance bonuses that they looked at didn’t affect their salary. It was an awards ceremony, a plaque, or some other horrible cheap tactic.

The way that this is setup gives both the employee and the business owner a safety net. The employee gets the good base salary, but has the opportunity to earn an additional 20% of that salary if they are able to grow the program. I think by offering them something they care about (more money), the program will be far more successful.

By: randfish

randfish — Thu, 10 Jan 2008 22:14:05 +0000

Not to be negative, but I’m fairly sure that Harvard’s research on this subject, described here – http://www.joelonsoftware.com/articles/fog0000000070.html – showed that in fact the opposite is true – incentive-based salaries have an overall negative effect on productivity and effectiveness.