I agree, the power is a factor and that it's not about the company having a down year. This exists in Tech Software sales too. It's about not paying full price for a person who doesn't produce.
It's about shifting the budgeted comp of the under-performers to the over-performers. Inevitably, you will end up with a bunch of over-performers killing it, and the under-performers who can't make their number will leave. It's a giant selection process.
Good employees make bank. Bad employees quit and go somewhere with less downside risk.
It's about shifting the budgeted comp of the under-performers to the over-performers. Inevitably, you will end up with a bunch of over-performers killing it, and the under-performers who can't make their number will leave. It's a giant selection process.
Good employees make bank. Bad employees quit and go somewhere with less downside risk.