No Bullsh!t Leadership 358. How to Pay People Properly: Your No Bullsh!t Guide to Remuneration
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Jul 8, 2025 Discover the intricate world of employee remuneration and its vital role in business success. Learn how strategic management of labor costs can enhance organizational effectiveness. Dive into the components of remuneration such as base salaries, short-term incentives, and long-term incentives, and their impact on employee satisfaction and performance. Gain insights on optimizing financial rewards to align with your organizational goals, ensuring you make informed decisions that affect livelihoods.
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Base Salary and Job Performance
- Base salary is linked to performance of the job, not the individual.
- Pay is only the fifth or sixth motivator of job satisfaction, not the top driver.
Be Strategic With Raises
- Don't give pay raises just because employees ask for them; assess business impact first.
- Pay top performers rapidly and budget by removing non-performers instead of delaying raises.
STI Bonus Structure Explained
- Short-term incentives (STIs) are bonuses awarded for achieving KPIs, usually as a percentage of base salary.
- Higher roles have higher STI percentages, creating a multiplier effect between salary and bonus potential.