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On compensation, incentives, and paying people well
5 quick hits for your Thursday morning
Matt Verlaque
April 25, 2024
This is the Unbreakable Business newsletter - created just for SaaS founders and operators who want to build a company that won’t fall apart.
I’ve been on a tear the past few weeks on LinkedIn writing about compensation - turns out, people really care about their money. Who knew?
Today’s issue is a “quick hit” style - designed to get your wheels turning about how you pay people.
Enjoy!!
Five Quick Hits 🥊 🥊 🥊 🥊 🥊
On aligning incentives:
"Who does the work? Who bears the consequences? Who reaps the rewards? When the incentives are aligned, it's the same person."
-@JamesClear
— Brian Thompson (@BrianJThompson5)
5:44 PM • Aug 24, 2023
James Clear nails it here - variable comp only works when the incentives are truly aligned - the upside, the downside, the effort, and the ownership (don’t sleep on that last one). If people can’t actually impact the numbers they’re tied to, things can go off the rails pretty fast.
P.S.: Brian (above) is a founder I coach in SaaS Academy, and I was PUMPED to see this tweet from him 🔥