An Undesired Effect of Cash Incentives

Most career sales jobs have a commission pay structure. In addition, many companies pay bonuses in attempt to motivate employees to stretch themselves and improve performance. Pay for performance is a time-honored compensation strategy, but recent research shows that people who are rewarded based on performance think differently about money than people who receive a fixed salary. The performance pay approach risks encouraging workers to focus on pay and not on the work. According to a report, commission-based workers express more desire for money than people who receive fixed salaries – even when the amounts they earn are similar. In a study by Loran Nordgren, an associate professor of management and organizations at Northwestern University’s Kellogg School of Management, participants

A Foolish Approach to Corporate Culture

Corporate culture is a common phrase in today’s workplace, but it wasn’t as fashionable in 1993, when brothers Tom and David Gardner and their friend Erik Rydholm founded The Motley Fool, an investment newsletter. One year later, at the dawn of the online age, the team inked a contract with America Online to provide personal finance content and the rest, as they say, is history. Fast forward nearly one-quarter of a century and the privately held Virginia-based company boasts some 300 employees and multiple revenue-producing divisions. The basic approach to corporate culture at the company has evolved greatly, but it is based on the same bedrock the brothers established when they hired their first few employees. “We didn’t really have

Can Every Job Be Meaningful?

With the labor pool as tight as it is across the country, there is a lot of talk about smart strategies to recruit and retain top talent. Good pay and benefits is a natural starting point; Recognition, flexible work schedules and opportunities for growth are other common denominators among companies that enjoy low turnover. “Make work meaningful,” is advice that’s often tossed out as an effective means of attracting and keeping good workers. It’s great in theory, but extremely challenging in practice. In its 2016 “State of the American Workplace” report, Gallup states that 68 percent of workers in the U.S are disengaged. The importance of creating meaningful work is indisputable. Gallup reports that companies with highly engaged workers outperform