Compensation in agile companies


Employees should act independently and on their own responsibility, decide locally in the interests of the company.


A high degree of flexibility is desired and an orientation towards the company goals. 


How do you evaluate compensation systems in sales from an agile perspective?     


They focus one-sided on a performance criterion (for example, sales or output) and neglect significant other aspects (contribution margin, costs, strategic goals, product and customer goals, product quality, deadlines, etc.)


They are boring because the employee's basic performance is more variable in income than his or her target performance. More power is not really worth it


Traditional variable compensation is unfair because the amount of employee income depends more on contingencies (area potential, production downtime) than on personal performance


Classic performance compensation is usually reduced to a few employee groups and loses sight of everything


Traditional commission systems / incentive systems are inflexible as they reward the same performance criteria over years and are not open to external or internal changes


Traditional systems of performance-based pay usually do not have team-oriented pay. It is only the performance of individuals remunerated, networks do not or rarely take place


Variable income shares are often too low and thus have too little effect on the behavior of the employees or too high and thus from a labor law point of view inadmissible.                                                                                                                                                     


Trends in modern performance compensation in an agile business 


Bosch kisses goodbye the bonus, SAP the performance rating, so which requirements must a performance compensation in the agile company fulfill?   


In principle, the variable compensation of employees supports the behavior of the employees in the sense of the company goals and to motivate them to committed performance.                                                                                                                                                    

Requirements for pay systems in the agile company are:

        to achieve the company goals better

        to achieve concrete yield improvements

        to focus more on performance     

        to achieve more self-control and personal responsibility of the employees