December 26, 2007

Change the culture of the company by changing the way people are paid for the work they do

A relatively powerful and efficient way to change way people behave - and thereby change the culture of the company - can be by changing the way people are paid for the work they do. For example, if you want to make the culture of the company, you work for, more performance oriented, one possibility is to make salaries depend more on how the team/division/company performs. To give a more concrete example: If the profit margin is above a certain percentage, a bonus will be paid to each employee / manager.

Do you have further suggestions on how to move the culture in a certain direction by changing the types of compensation used? It would be interesting to hear about what you have experienced work well for the company as a whole.
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