When It Comes To Employee Compensation, You Get What You Pay For

One of the most contentious issues in any professional service firm, be it a law firm, accounting practice, architectural studio or consulting engineering firm, is how to reward performance through employee compensation.

Approaches between individual firms differ widely. In some, employees are compensated more or less equally depending on levels of seniority and years of service. In others, individual star performers are handsomely rewarded, while those who appear to have contributed less are penalized. In some firms, the process of determining salaries and bonuses is open and transparent. At the opposite extreme, it may be highly secretive.

Yet few things can be more destructive than an employee compensation system that is perceived to be unfair.

Going Beyond Billability with Employee Compensation