3 ms·

What's the best incentive system for both employee and company?

• M2Ys4U 4y ago
  Surely it has to be profit sharing - split a healthy chunk of profit between employees as an equal percentage of their base salary. Everyone is incentivised to make the company more profitable, no individual/team/department/division can siphon bonuses from anybody else.
  • mruniverse 4y ago
    Do you think giving RSUs is about the same?
  • Rastonbury 4y ago
    Not so easy in practice, let's say a company has to make a big investment (acquisition/enter a new market/new product), employees are generally more risk averse and care about consistent year to year income, maybe they have an average tenure of 3-4 years. In this example, employees may not be incentivised to take bonus hits now for income 5+ years down the road, especially if bonus is a high proportion of total comp.