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Learning Before Earning

Learning Before Earning

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Many companies fail to realize that tying employee pay directly to customer satisfaction ratings can actually distort the customer feedback they collect. Employees often turn their attention to managing the feedback process rather than pleasing customers.

Behavior-based compensation systems create a different dynamic. With a behavior-based approach, companies can use compensation systems to increase employee engagement, operationalize knowledge, and build institutional habits that continue to improve over time.