
Compensation is an arcane art. Everyone in business knows how a company determines compensation is extremely important to its health and culture, and yet nobody ever seems to be happy about it. Adding to this problem is the additional fact that nobody wants to sound like a jerk, and so there’s a strong tendency for companies to spout niceties and platitudes, regardless of empiricism, even though the evidence probably suggests they should get rid of their employees’ performance bonuses—not just to cut costs, but to make them happier and more productive.




