The concept of “paying for performance” is central to sales and service organizations. Examples include paying retail associates based on product sales, trainers based on number of classes taught, salespeople based on quota achievement, insurance agents for policies sold, and so forth. Trillions of dollars are spent every year on commission-based pay. Research suggests this is money well spent. Except when it isn’t. To quote Dr. Barry Gerhart, “Pay-for-performance seems capable of producing spectacularly good results. It can likewise produce spectacularly bad results.” READ MORE