Paying people for work, without destroying their motivation, is one of the most difficult challenges for management. Regrettably, most compensation systems are considered unfair by employees and unscientific by experts. That's why it would be wise to consider some lesser-known alternatives that are based on real merits instead of imagined performance.
Jojo runs a business. His revenues are good, but the income varies significantly. One month he wonders if he will be able to survive the slowness of summer; another month he wonders if his bank account can survive the next stampede of customers. And yet, Jojo pays himself the same somewhat conservative salary every month. It's enough to pay for his food, mortgage, and novels, but not enough for that vintage Eames lounge chair he has always wanted.
However, today he wants to allow himself something extra. The exports to Norway last month earned ...
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