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Kohn says that compensation is perfectly fine, as long as it's not used as a cudgel to mold behavior. You should get high quality employees because they want to be successful and good at what they do, not because you pay them to be. One way of solving the problem you propose is to pay your people well, so competitors have a hard time offering significantly more, and then give them the opportunity to enjoy themselves at work. Why would they leave?

I understand that Netflix does something like this. They pay salaried employees top dollar, give them choices about what to work on, and demonstrate their trust with policies such as the no-vacation-policy policy. < http://www.slideshare.net/reed2001/culture-1798664 >.




Great link, thanks!




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