Does your bonus system send the wrong message?

10/20/2010 | Harvard Business Review online

Cash bonuses for performance should not be given at a startup if the venture is losing money, Michael Fertik writes. "Rewarding people with cash payouts dilutes the mission. It reinforces the traditional primacy of upfront dollars over creating appreciated stock value and shared gain," he writes. A better idea would be sales commissions or referral bonuses for good hires, he writes.

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