The theory of compared incentives in the company

Employees also constantly compare the ratio of their own salary and their own contribution with the ratio of the salary and the contribution of their colleagues. If they feel that the relative ratio is unfavorable and they are not receiving a better salary, they will reduce their contribution so that the ratio is right again in their eyes. Your employees have a good sensor for such relative pay. Make sure the ratios are balanced. Acknowledge potential and performance and point out when, in your view, performance is lacking.


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