How to set compensation using commonsense principles
Erik Bernhardsson
JUNE 7, 2020
Compensation has always been one of the most confusing parts of management to me. Getting it right is obviously extremely important. Compensation is what drives our entire economy, and you could look at the market for labor as one gigantic resource-allocating machine in the same way as people look at the stock market as a gigantic resource-allocating machine for investments.
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