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I saw the same article but my take on it was a bit different. While I agree with many of the design ideas I don't believe that changing the compensation system is the answer. Compensation is the foundational element in the employee-employer relationship and should have some ongoing stability. If a company took all these ideas into consideration they would be changing their compensation structure too often.

I believe using non-cash or other reward/recognition systems allow companies to change focus quickly without revamping their entire compensation system. I'm not saying incentives are the only answer - simply a more flexible and manageable one. You can read my responses point-by-point in my November 17th post: Incentives vs Compensation at http://incentive-intelligence.typepad.com

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    Compensation consultant Ann Bares is the Managing Partner of Altura Consulting Group. Ann has more than 20 years of experience consulting with organizations in the areas of compensation and performance management.

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