00:00We're not talking about base pay now, we're talking about variable pay.
00:03Take sales in particular.
00:05It's very important to be transactional on sales plans design in the sense that if you
00:11hit 50% of your target, you're going to get this pay amount, and this is the percentile
00:17of market that you can expect that you'll be paying at.
00:21We could turn around to a sales employee and say, if you do this, if you hit 110% of your
00:26target, so you're doing better than your target performance, you are going to be paid this,
00:31and guess what?
00:31You can say to yourself that I'm paid at the 75th percentile of market, and the more they
00:36go in terms of their performance, they can literally see that they're being paid at a
00:41higher level of market.
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