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This is a really good article Chuck. Thanks

Most top managements want a competitive assessment for a proposed compensation change for several reasons:

They want to stay competitive with the personnel costs of their competitors.

Valued employees will leave if they see a better deal with a competitor.

Other companies often have innovative ideas on how to compensate their employees.

All true statements, Sidney, but I don't yet see the connection to my article. I'm all for innovation (who isn't?), but the ideas have to make good business sense, show a reasonable ROI and are anchored on solid facts and hard costs / benefits, not "feel good" arguments based more on "survey says."

Rather than implement 'incentives' further down, why not consider a profit-sharing plan that is self funding (no give-away, because if there are no profits, nothing is shared)!

Educating all team members around good business practices (including an understanding of the financials) and keeping folks' eyes on the way the company is making profits keeps employees engaged and minimizes any toxic 'us-them' mentality within the organization.

What Shawn said.

Unless you can rationalise specific measures, I'd prefer Shawn's approach.

In my many years of HR consulting, I have seen companies use the following rationales, that you claim are frowned upon, many times to great benefit. Not sure where you got your list.

Caution: Always provide a business (financial) rationale, and not subjective phraseology like “survey says” or “everyone else is doing it" or even “it’s the right thing to do." Management tends to frown over such weak rationalizations.

Companies that fail to do the right thing for their employees often find that the behavior is reciprocated---employees fail to do things that are the right thing for the company because they have a sense the company is not looking out for them.

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