This includes changing compensation agreements, overhauling pay scales or cutting the workforce. Attempts to build corporate culture are derailed as a result. The softening of the economy means you will make decisions that impact your employees wallets. Instituting a new compensation agreement is an emotional challenge. In a matter of months, the revolving plans can take the steam right out of a company.
Agents become distrustful.
They lose their focus. Creating compensation upheaval means creating change. From one plan to the next, agents change their mindsets and personal goals to meet new corporate objectives. Because change is considered to be unfriendly anyhow, change involving the way one gets paid only accentuates agents concerns. If a plan penalizes agents in comparison to what they had before, they feel this is retribution, and turmoil ensues.