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Break the Link Between Pay and Motivation

Decades of research show that pay-for-performance compensation systems are not well suited to knowledge work. A better alternative is to decouple performance targets and compensation. Across a national sales force at Hilti Group, an experiment using a target-independent pay system bolstered sales results, retention, and engagement — offering a strong business case for leaders considering whether to finally leave behind the pay-for-performance model.

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