Download e-book for kindle: Compensation by Robert E. Sibson

By Robert E. Sibson

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Nevertheless, I would urge you to consider these ideas. First, there must be fairness at work and a commitment to employees' personal goals if there is to be employee accountability to work and a sufficient employee commitment to excellence of work. Second, while physical assets belong to the owners, knowledge belongs to the employees. I think these issues can be resolved by compensation answers rather than by psychological or legal answers. For example, one answer is an employee stock ownership plan.

In compensation work, it is necessary to know the true nature of the model of the business and to do compensation work that is supportive of that model. In fact, there are now a number of distinct business models. For example, technology businesses and those that serve the personal care and leisure time fields are numerous, and these business areas are growing rapidly. In these businesses, the primary limitation on output is the capacity of people; for example, you can always rent more space and lease computers.

This great increase in productivity will occur largely by the traditional method that has been used in this country: capital substitution. The capital substituted will mostly be computers and communications equipment. Page 5 A big difference in this case of substituting capital for labor is that employees, not the capital, will control output. This means that human assets will be even more critically important to enterprises. Capital substitution when output is labor controlled means that the management of personnel will have to be elevated to a new high of excellence.

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