Salespeople being paid commissions is a common practice, but it can lead to various recurring problems like high turnover and internal disputes.
Research suggests that higher incentives, like commissions, can actually reduce performance in some cases, which is a counter-intuitive result.
The debate over sales commissions reflects two different views of worker motivation: Theory X, where employees are seen as lazy and need external rewards, and Theory Y, where workers are viewed as self-motivated and thrive on autonomy.
Employees often undervalue their equity in startup companies, leading to a lack of motivation and missed opportunities for potential financial gain.
Startup leaders need to openly and honestly discuss equity with employees to help them understand its value and make informed decisions about their compensation.
Engaging with the emotional aspects of equity and providing guidance on how to value it can lead to better employee motivation, productivity, and retention in tech startups.
Empower your team by involving them in decision-making and letting them contribute to the team's goals and projects
Provide your team with autonomy by giving them the freedom to choose how they approach tasks and make decisions
Empower your team by giving them opportunities to work on stretch projects that challenge and help them grow, and by connecting their work to a larger purpose