Sins of Comission

Extra pay for performance can be seen as a double edged sword. On one hand, the employees who get a pay raise due to their good performance will essentially perform better. But this is only a quick fix for the overall improvement of the employee. If given the extra pay, the employee thinks that they are doing a good job overall, and has no room to grow. The real way to better an employees effectiveness is to change the organizational culture, people's mind sets and beliefs, their knowledge and skills, and how effectively they work and communicate with each other.

It seems as though many companies just give the employees incentives/commission to keep up with the competition, but that is not where the true seed for growth is in a company. The commission idea I believe has a fine line between paying employees too much for their benefits, and too little. The more that an employee gets paid for commission, the more that employee believes that he/she is doing her job fine, and does not need to improve in any particular way. But if the company decides to pay the effective employee to little, that person will become frustrated and not want to work as hard. He/she believes that all of their hard work has not been worth the compensation. I think that all companies should adjust the system to better accommodate employees. And this can act as an incentive as well as help them do their job more effectively.