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I'm not so worried about the whipsaw effect of changing pay structures as much as I would worry that as the employee population grew the connections between employees and the company would become less altruistic creating decisions that would focus more on the individual than on the company as a whole.

We've seen it occur in our own country as voters rally to support a policy and/or change that isn't in the best interest of the majority but more focused on the interest of a more vocal and crafty minority.

In addition, as the employee base grew, the social pressure to do the right thing would decrease as annonimity within the organization increased. Instead of one vote out of 19 it would be one vote out of 19,000 - a much different group dynamic would be in effect leading to less than optimal decision making.

I think this would work in small, socially-connected organizations, but would be a disaster in the a more traditional, larger organization.

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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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