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A Deep Dive on Compensation

In The Trenches

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Compensation Design and Fairness

This chapter explores the importance of fair compensation based on productivity and performance, using case studies and analogies from various industries, including sports. It discusses the use of specific metrics to remove subjectivity and emotion from compensation schemes, as well as the three effects of financial incentives. The chapter also touches on the challenges of designing effective compensation plans for sales representatives and the significance of clear communication.

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