Skip to content
FREE SHIPPING ON ALL DOMESTIC ORDERS $35+
FREE SHIPPING ON ALL US ORDERS $35+
Scaling Up Compensation: 5 Design Principles for Turning Your Largest Expense into a Strategic Advantage - Paperback | Diverse Reads

Scaling Up Compensation: 5 Design Principles for Turning Your Largest Expense into a Strategic Advantage

Availability:
in stock, ready to be shipped
$15.99 - $15.99
$15.99
$16.99
$16.99 - $16.99
$16.99
How you compensate people is one of the most important strategic decisions your company will make - but few "get it right and out of sight." Nail it and you can add hundreds of percentage points to the bottom line while driving up the energy in the organization. Make the wrong call (or piecemeal the decision together), and the results will create needless drama throughout the organization. Do any of these challenges sound familiar? • "I gave a star performer a raise, and now everyone else is marching into my office, demanding one, too." • "If anyone looked closely at our payroll, it would be hard to rationalize why we're paying certain people what we do." • "I'm tired of losing our best people to the Googles of the world because we can't match their salaries."
Compensation is one of your largest expenses, one you can turn it into a strategic advantage in attracting, retaining, and motivating talent (or not accidentally demotivating them). In this highly practical book, the authors share 5 principles for designing effective compensation systems along with plenty of examples from leading small, medium, and large firms across various industries. You'll learn: 1. The #1 mistake business leaders make in setting up their compensation plans 2. The psychological aspects of compensation underpinning successful plans 3. How individual bonuses can backfire 4. The power of gamifying gains to drive up energy and engagement 5. Whether you want to be queen/king or rich!

ISBN-13: 9781955884181

Media Type: Paperback

Publisher: Advantage Media Group - Inc.

Publication Date: 04-12-2022

Pages: 114

Product Dimensions: 6.00(w) x 9.00(h) x 0.24(d)

VERNE HARNISH is founder of the world-renowned Entrepreneurs’ Organization (EO), with over 18,000 members worldwide, and chaired for fifteen years EO’s premiere CEO program held at MIT, a program in which he still teaches today. Founder and CEO of Scaling Up, a global executive education and coaching company with over 260 partners on six continents, Verne has spent the past four decades helping companies scaleup. He’s the author of the bestseller Mastering the Rockefeller Habits; authored The Greatest Business Decisions of All Times, for which Jim Collins wrote the foreword; and wrote Scaling Up (Rockefeller Habits 2.0), which has been translated into 26 languages and has won eight major international book awards including the prestigious International Book Award for Best General Business book. His latest books, Scaling Up Compensation and 12 Habits of Valuable Employees, rocketed to the #1 HR books on Amazon upon release. Verne serves on several boards including vice chair of The Riordan Clinic; co-founder and chair of Geoversity; and board member of the social venture Million Dollar Women. A private investor in many scaleups, Verne enjoys piano, tennis, and magic as a card-carrying member of the International Brotherhood of Magicians. SEBASTIAN ROSS is a thought leader and consultant in the space of People, Culture, and Conscious Business. Sebastian started his career as an entrepreneur in the technology space and later as a partner in a venture capital firm. In recent years, Sebastian held leadership roles as CEO and other C-level positions with several international scaleups. He is currently the Director of the School of Founders Program at the IESE Business School in Barcelona.

Read an Excerpt

EXECUTIVE SUMMARY: Being different is key to any effective strategy – and that includes designing a “strange” compensation plan that incentivizes the behaviors your customers and other stakeholders expect. But make sure your comp plan aligns with your culture/core values or risk it being rejected. This is why it is dangerous to just copy someone else’s compensation plan. And don’t look at people as a cost; they are an investment. This mindset is crucial as you design a compensation plan that supports what we call a Good Jobs Strategy. This allows you to scale with less people, who are paid more, yet with a lower total cost basis than your competition – a win, win, win in the marketplace.

Table of Contents

Overview - Five Principles for Effective Compensation Design 5

1 Be Different: Aligning Compensation with Culture and Strategy 17

Lincoln Electric: "The Best-Paying Sweatshop in the World"

Meeting Stakeholder Expectations

The Good Jobs Strategy

A $70,000 Minimum-Wage

2 Fairness Not Sameness: Creating a Coherent and Flexible Pay Structure 33

Telemedicine Clinic: "Cleaning Up Our Comp Mess"

The Three Drivers of Base Pay

Leaders and Makers

Living-Wage, Not Minimum-Wage

3 Easy on the Carrots: Using Individual Incentives Effectively 55

Egon Zehnder: "Deliberately Old-fashioned"

Making Individual Incentives Work

Incentivizing Your Sales Team

Evolving Compensation Along the Growth Cycle

4 Gamify Gains: Driving Critical Numbers Through P(l)ay 73

MiniMovers: "A Bonus for Not Breaking Stuff"

Effective Gain-sharing Schemes

Irregular, Ad Hoc Rewards

Non-Monetary Rewards

5 Sharing Is Caring: Getting Employees to Think Like Owners 85

Access Fixtures: "No More Wining and Dining"

Aligning Interests Through Profit Sharing

Sharing Value with Those Who Create It

Options for Value-Sharing

Closing: Get Pay Right and Out of Sight 102

Appendix 104

Appendix A Six Principles of Persuasion

Appendix B Total Rewards Statement

Appendix C Compensation Philosophy Statement

Appendix D Market References

About the Authors 111