US EditionHow Higher Pay Incentives Can Backfire - CEO North America
Summary by Chief Executive Officer North America
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How Higher Pay Incentives Can Backfire - CEO North America
In the mid-1990s, Safelite, a windshield repair company, made a bold move. It replaced hourly wages with performance-based pay, offering employees the chance to earn more money the more windshields they installed. The results were striking. Within a year, productivity surged by approximately 44 percent. “That’s a massive increase,” says George Georgiadis, an associate professor of strategy at the Kellogg School of Management and an expert on per…
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