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Variable Compensation: All HR Needs to Know

AIHR

Variable compensation can be a useful tool for rewarding employees’ performance to provide measurable results for your business. Let’s dive into all you need to know about variable compensation. Contents What is variable compensation? What is variable compensation? Examples of variable compensation.

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Incentive Pay Challenges And Opportunities In 2023  

Chief Executive

Taking all of this into account, it’s not surprising that organizations in all industries around the world have found it necessary to refine, if not significantly reengineer, their approaches to total rewards. Supplemental compensation practices to offset inflation. a one-time bonus) as opposed to an increase in base salary.

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Contribution Margin: What It Is, How to Calculate It, and Why You Need It

Harvard Business Review

. “Contribution margin shows you the aggregate amount of revenue available after variable costs to cover fixed expenses and provide profit to the company,” Knight says. You might think of this as the portion of sales that helps to offset fixed costs. In fact, COGS includes both variable and fixed costs.

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We Can’t Study Short-Termism Without the Right Metrics

Harvard Business Review

FCLT and McKinsey rely on readily available and machine-readable accounting data to measure myopia. However, firms can efficiently increase margin growth without much revenue growth by managing to squeeze out their fixed costs to service the same level of output. Compensation structure. Creative accounting measures.

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Health Systems Need to Completely Reassess How They Manage Costs

Harvard Business Review

Contracted services account for significant fractions of all hospitals’ operating expenses. In larger facilities, there is often an astonishing proliferation of special care units, ICUs, and quasi-ICUs that are expensive to staff and have high fixed cost profiles. They also do not represent sustainable, long-term change.

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Who Wins in the Gig Economy, and Who Loses

Harvard Business Review

A full-time job provided the steady income needed to support our traditional version of the American Dream: the highly leveraged, high-fixed-cost house; the cars; the latest consumer goods. They can command attractive compensation, garner challenging and interesting work, and secure the ability to structure their own working lives.

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Groupon Doomed by Too Much of a Good Thing

Harvard Business Review

This is the essence of Groupon's declaration last week that it will remove the controversial accounting metric called Adjusted Consolidated Segment Operating Income (ACSOI) from its financial statements. ACSOI essentially measures Groupon's profits before subtracting its subscriber-acquisition costs and stock option-based compensation.