The Compensation Flywheel

Your comp structure is either keeping great people or losing them.

Here’s the structure that keeps them:

1) Pay market rate first.

You need to be close to the 50th percentile before you can even look at other compensation elements. If you’re not paying at least the average for your area, you’ll struggle to attract and keep the best people.

2) Add around 10% variable on top.

This is your performance layer. The more they do, the more they make. Structure it around the behaviors you want to see.

More calls answered? Incentivize per call.
More hours worked? Incentivize per hour.
More deals closed? Tie it to revenue.

Think of it like profit sharing. The more they give you, the more you give back.
This usually creates a flywheel. 

Productivity goes up.
Your top performers make more.
You reinvest that extra cash into better tools and systems.
Those tools and momentum help your team perform even better.


I’m Mark Danielson, and I help healthcare leaders reduce support costs while improving patient satisfaction.

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