Rethinking Compensation

“The intention to move the whole organization at one time, by one means, is destined to evoke compliance, not commitment. It becomes high persuasion, not high performance,” says Peter.

We often think money and behavior are related in some way and rewards or compensation can be used to change attitudes and behavior. When we have a vision to create a new company culture it seems as if the only way to do this is to reward and compensate as much as we can when employees do good. But pay systems do not change company culture.

Appraisal, or a reward system, is a form of coercion and it does not solve the root of the problem. A reward system is a punishment system too, Peter adds. Human systems are too complex to engineer their complete transformation.

We must let go of the reward system and say “yes” to questions for freedom, service and adventure, both as an individual and as a work unit. This way of thinking opens up the possibility of beginning our own experience with partnership and stewardship, says Peter.

In this article, Peter explains why pays systems should not be a tool for motivation of culture change.

If these ideas resonate with you, or if you want to learn more practical strategies on how to implement Peter’s ideas, consider attending one of our Flawless Consulting Workshops.

Can’t make it? No problem!  We’ll come to your location with our On-Site Workshops, or you can meet us halfway virtually.