During a very interesting exchange at a recent gathering of business professionals, a conversation around compensation and benefits practices of different firms arose. We were talking about two specific firms that reward employees in different ways.
The first firm believed in cash compensation based on performance: if you deliver X, then you receive Y. Cash compensation is very high for this firm, but minimal additional benefits are paid to employees.
The second firm believed in lower cash compensation, but with a significant benefits package that included insurance, development opportunities, community involvement, and a generous retirement package.
Both firms are successful, and we pondered how the compensation philosophy affected the bottom line....
