Harvard Business Review suggests ditching exec pay for performance

This is practically heresy to business schools but it’s consistent with the work of one of my heroes, Alfie Kohn (have you read Punished by Rewards?) Bribery-style compensation (if you do this we will pay you more) often backfires. Now HBR has published an article calling for the abolishment of pay for performance for executives and instead recommends a salary.

http://www.bloomberg.com/news/articles/2016-02-26/heresy-stop-paying-ceos-performance-bonuses-harvard-business-review-says

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Peer to peer recognition systems improve performance and cost less

Give your employees a formal way to say thank you to their peers. It can do a lot more to encourage good performance than the worn-out performance review and it costs roughly 95% less than giving out raises. Here is an interesting example of a point system that translates into dinners and vacations.

https://hbr.org/2016/02/the-benefits-of-peer-to-peer-praise-at-work