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Employees who have a stake in the financial success of their organization are much more focused and engaged in their work and aware of how it impacts the overall success of that organization than those who don’t. Unfortunately, most organizations rely solely on increases in base pay to reward employees and struggle with how to get the most from their compensation dollars, including how to evaluate and compensate performance objectively and equitably. Great care should be taken in developing specific measures for scorecards and incentive pay. There are some measurement principles that apply to all measures and should be considered each time a measure is developed. The following is an excerpt from William Abernathy's book Pay for Profit.
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