4 ms·
Employees still optimize for pay / effort, NOT absolute pay. In that respect, commissions are still FAR from perfectly aligning incentives. You can't really be
by solve 13y ago
Employees still optimize for pay / effort, NOT absolute pay. In that respect, commissions are still FAR from perfectly aligning incentives.
You can't really be suggesting that commissions are the silver bullet for aligning incentives, as if that hasn't been tried for thousands of years already, with very mixed success :)
- darkmighty 13y agoWell, make nonlinear commissions then! :P
- sogen 13y agomade me laugh
- billmalarky 13y agoI'm not suggesting there is a "silver bullet" for aligning incentives that exists (commissions can be abused by focusing on short term gains at the detriment of the companies long term goals etc etc), but commissions for goal completion is a step in the right direction compared to just writing someone a blank check because their resume looks pretty. Additionally, employees optimizing for pay/effort instead of max pay is still a win for the company so long as the employee brings in marginally more than they cost.
- interstitial 13y agoIf it is far from perfect, you can define perfect?
- solve 13y agoFantasy.