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Comment on CEO cuts his pay by almost $1M to give his employees big raisesparent

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can we really make this assumption? if everyone is paid the same where is the incentive to do more? how is morale affected in the reverse when you know you make as much as someone else who decides to slack?

while there are some benefits to increasing salary very large increases may negatively affect those already at a higher pay scale and some may dissociate effort with reward.

now if you dangle the carrot out there as a truly obtainable reward for meeting fair targets, then it truly becomes incentive for both retention and reward

if everyone is paid the same where is the incentive to do more? how is morale affected in the reverse when you know you make as much as someone else who decides to slack?

The U.S. federal government has this in spades. Lots of people making the same salary, and no incentive to do more, and no way to weed out poor performers. Yet the government bureaucracy is still able to perform, sometimes admirably.

The private sector has an important tool: fire the slackers. If someone is not performing well at a higher-than-average salary: lay 'em off. Hire someone motivated to perform and make a higher-than-average salary.

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