How should

people be paid?

Question # 1
Should information
about what people are
paid be shared openly?

An increasing number of companies
are releasing all salary information
to the public.
http://qz.com/209685/abramson/

http://nymag.com/news/features/bossless-jobs-2013-6/index1.html

At Menlo Innovations,
everyone can see what
everyone else is getting
paid

At Whole Foods. everyone knows what everyone else earns.com/article/SB10001424127887324235104578243673073627726. http://online.wsj.html .

youtube.People working for Semco have access to information about the company’s revenues and costs – including wages of everyone who works for the company.com/watch?v=gJkOPxJCN1w . http://www.

managementexchange.com/hack/simply-practical-model-compensation-management . http://www.Whether a person is satisfied with his or her relative value mainly depends on how his or her compensation compares with the compensation of his or her peers.

Question # 2 Who should decide how much people are paid? .

No specific criteria are provided.org/story/innovation-democracy-wl-gores-original-management-model .mixprize. http://www. people are asked to indicate who’s making the biggest contribution to Gore’s success.At Gore. An associate typically is evaluated by 20-30 peers and will evaluate 20-30 peers.

Thomas W. each person sent a proposed salary for himself or herself to everyone else in the group.The energy company AES has tested a system that sets salaries through peer review. p.: The Future of Work. 67. In the experiment. Malone. .

: The Future of Work. . 67. Malone. p.A possibility is to let each person in a group assign a percentage of the total compensation budget to all the others. Thomas W. The average of these numbers then determines each person’s actual compensation.

Question # 3 Should people be paid per task done? .

for example. colleagues are paid on commission for doing tasks: They can.At the company Fishbowl.org/2013/03/why-we-pay-all-our-employees-a . ask each other: ”I have an extra half hour. Is there anything I can do to help you finish a sale?” https://hbr.

com/blog/who-we-are/201005/motivating-students-learn . has conducted large-scale studies paying students for reading. grades. Jr. The results indicated positive outcomes. especially for paying students to learn specific skills. and test scores.Harvard University Professor Roland Fryer.psychologytoday. various behaviors. http://www.

Question # 4 Should people be paid an individual bonus? .

com/articles/2014-07-22/for-ceos-correlation-between-pay-and-stock-performance-is-pretty-random There is no correlation between CEO pay and company performance .businessweek.http://www.

http://timesmediamw.com/more-pay-equals-less-work/ .Financial incentives may reduce an person’s natural inclination to complete a task and derive pleasure from doing so. Analysis by Bernd Irlenbusch of 51 separate studies.

net/artikel/C31151/bmw-personalvorstand-unsere-leute-brauchen-keine-karotte-30029080.Wenn man die Boni zur Motivation braucht. Harald Krüger BMW http://www.faz.html . fördert das eine schädliche Entwicklung für das Unternehmen.

One day I ran out. A riot ensued.When I taught 7th grade English. http://www. ”Where's my sticker?” ”I want a sticker!” ”I won't do anything without a sticker!” I discovered they had become addicted to stickers. and informed my students that there will be no stickers for a few days.org/blog/reward-fraud-richard-curwin . I frequently gave stickers to my students.edutopia.

4.html . indeed.pdf http://blogs.hbr.Studies by Edward Deci show that strategies that focus primarily on the use of extrinsic rewards do.org/cs/2013/04/does_money_really_affect_motiv. http://www. run a serious risk of diminishing rather than promoting intrinsic motivation.rug.nl/gmw/psychology/research/onderzoek_summerschool/firststep/content/papers/4.

Several studies show that there is less than 2% overlap between pay and job satisfaction levels.%20et%20al.%20(JVB%202010). In other words. you cannot buy engagement with money. https://hbr.org/2013/04/does-money-really-affect-motiv http://www.%20Piccolo.com/Judge.pdf .timothy-judge.%20Podsakoff.

http://timesmediamw. such as those found on a 20th century assembly line. mechanical tasks.External rewards work well for routine.com/more-pay-equals-less-work/ . Analysis by Bernd Irlenbusch of 51 separate studies.

teacherspayteachers.com/Product/How-do-you-motivate-yourself-1378486 .Further inspiration https://www.

Question # 5 Should peple be paid an individual bonus that must be given to others? .

National Australia Bank gave money to people working for different companies and asked them to give gifts to each other.hbr. Teams that received pro-social bonuses performed better after receiving the bonuses than teams that received money to spend on themselves.org/2013/10/the-bonus-employees-really-want-even-if-they-dont-know-it-yet/ . http://blogs.

Question # 6 Should all managers be paid the same salary? .

nber. drivers. who are compensated with a fixed wage have approximately 67% less accidents per kilometer driven than drivers who are paid per passenger transported. Chile. http://www.org/papers/w11744 .In Santiago.

html .At Whole Foods. the top 7 executives get the same pay and bonus.wsj. http://online.com/article/SB10001424127887324235104578243673073627726.

hbr. Afterwards.org/content/early/2010/08/27/1011492107. emotional well-being levels increase with salary levels up to a salary of USD 75. they plateau. http://www.pnas.org/cs/2013/04/does_money_really_affect_motiv.000.In the USA.html .abstract http://blogs.

Question # 7 Is paying people to be creative a good idea? .

particularly for tasks that involve creativity.1978589-2.time. http://www.8599.com/time/nation/article/0.Edward Deci has found that money does not work very well to motivate people over the long term.00.html#ixzz0krFBzRx8 .

Initiative. and passion.com/garyhamel/the-problem-with-employees . creativity. cannot be commanded http://bigthink. that create wealth in the creative economy.

Question # 8 How are people praised for results in nonfinancial ways? .

org/2013/10/fergusons-formula/ar/4 .For a player .for any human being .” Sir Alex Ferguson http://hbr.there is nothing better than hearing “Well done.

http://www.com/sites/victorlipman/2013/02/09/in-praise-of-praise/ .forbes.Thank you. These words take less than 10 seconds to say. I really appreciated your work on that project. Great job.

com/insights/organization/motivating_people_getting_beyond_money .Non-financial incentives are more effective than financial incentives http://www.mckinsey.

We therefore involved people in presenting their ideas to senior management.mit.edu/the-magazine/2011-winter/52210/the-5-myths-of-innovation/ .People reported that recognition of their ideas was a reward in itself. They wanted to be engaged and to participate. http://sloanreview.

bqf. see if you can find someone to praise for:  Coming up with some great ideas. Paul Sloane http://www.org.  Bringing an external idea into the company.At your next department meeting.  Challenging the conventional way of thinking.  Making something happen.uk/innovation/2010/04/06/praise-the-behaviours-you-want-to-see/ .  Collaborating with a different department.  Trying something new.

Indra Nooyi.mckinsey. sends the spouses of her top team handwritten thank-you letters.com/insights/organization/increasing_the_meaning_quotient_of_work . CEO of PepsiCo. http://www.

http://www.psfk.html .com/2013/11/notes-for-anyone-billboards.

com/Product/How-do-we-give-feedback-1761017 .teacherspayteachers.Further inspiration https://www.

Question # 9 How are people praised for effort in nonfinancial ways? .

http://www.nytimes.html .Study shows that it is much better to praise a child for effort than for their intelligence.com/1998/07/14/science/praise-children-for-effort-not-intelligence-study-says.

be/RzkwtIMPkrs Minute 36.Praising students for what they did and did well is a good motivator http://youtu. .

http://www.youtube. .com/watch?v=HhxcFGuKOys minute 9.

org/2011/02/secrets-of-positive-feedback Douglas R. But in my experience.be/9buGE_vKxcc https://hbr. Conant . they build goodwill and lead to higher productivity.Writing handwritten notes may seem like a waste of time. Sources http://youtu.

pdf http://rcs.org/2013/11/when-selling-digital-content-let-the-customer-set-the-price/ http://blogs.org/video/4093719303001/change-the-way-you-pay-your-sales-force http://blogs.com/money/ http://www.org/video/4093719303001/change-the-way-you-pay-your-sales-force https://hbr.aspx?num=4992&sf43327163=1 https://hbr.pdf https://hbr.de/2008/21/III-Kunst_-Interview-Anderson?page=2 .happinessresearchinstitute.pdf http://youtu.hbr.hbr.com/images/BMI%20Chart%20063008.hbs.alumni.hbr.zeit.resultsfromcrowds.seerinteractive.edu/stories/Pages/story-bulletin.com/wp-content/uploads/2011/12/Crowd_Business_Models.innosight.hbr.hbr.Further sources of inspiration https://www.org/cs/2012/09/how_to_find_out_what_customers_will_pay.com/download/i/mark_dl/u/4012080374/4605335061/TheH appyDanes%20%28Webedition%29.org/cs/2010/01/is_your_business_model_a_myste_1.html http://blogs.be/1ju8-agpCAQ http://www.org/2014/10/capture-more-value/ar/1 http://www.html http://www.org/cs/2013/02/why_good_better_best_prices_are_so_effective.html http://blogs.org/2014/06/dont-offer-employees-big-rewards-for-innovation/ http://blogs.

. For further inspiration and personalized services.com/ Have a great day.Thank you for your interest. feel welcome to visit http://frankcalberg.

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