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Ann,this is a really important point to make about incentives and pay for performance. My own, career long disappointment with incentive plans is that they are so complicated and mathematically self referential (the multiplier applies to a percentage of a pool that's allocated in some cases in a step-wise fashion) that even though people can eventually do the math, the concepts are hard to keep connected to reality and anything you do on a daily basis. That was a long way of saying that the interdependence of the measures also need to be communicated effectively, and that's no easy task.


Agreed - if we can't communicate how the measures work clearly - or if we can't even share information on them in the first place - then they aren't going to change anyone's behaviors or efforts.

Thanks for the comment!

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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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