The article Sins of Commissions talks about pay for performance system. Personally I am not in favor of such performance system as it is not stable and does not provide for a decent lifestyle. Additionally the system creates sharks, disincentivizes teamwork, and destroys creativity and innovation. I also think that this type of system allows for companies to discriminate at the hiring process and while employed.
Commission based jobs usually require a lot of time, energy and motivation. One must work long hours and only few are ready to do so. Companies hire single individuals that are competitive, have sports background. Also individuals that are family oriented and that have life outside of their work are less likely to take a job based on commissions as they want to have guaranteed base pay that can pay the bills. The idea that teacher’s compensation is connected to student’s grades is wrong. This idea creates moral hazard and it would leave kids across the country illiterate.
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