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The Compensation Handbook, Sixth Edition: A State-of-the-Art Guide to Compensation Strategy and Design, 6th Edition by Dorothy Berger, Lance Berger

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35

Using Financial Rewards to Drive Productivity

CHRISTIAN M. ELLIS

Management Consultant and University Educator

It is an empirical economic fact that along with innovation, productivity is the primary differentiating factor over the long term that determines the wealth of nations, societies, and organizations. Drawing from decades of research, we know that if the productivity of an enterprise is greater than that of its competitors over a sustained period of time, it has a much better chance of survival because of increased competitiveness, financial health, and overall value creation.

In our complex and global economy, where knowledge and specialization are increasingly important and where labor investment often exceeds capital investment, ...

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