Episode #15 — Reimagining Compensation Structures

In traditional compensation structures, sales-based businesses operate with an “eat what you kill” mentality. CEOs focus on maximizing ROI instead of leading with their hearts. Lately, there has been a shift in businesses who truly care about their clients and their culture by moving away from this mentality.

My guest today is the managing partner of Sensiba, John Sensiba. John is part of the reason Sensiba’s compensation model was turned on its head and a better, more sustainable model was born. Although financial success is important, John believed that Sensiba could provide a better compensation model for its partners and employees that would actually benefit their clients more.

The compensation structure Sensiba adopted isn’t just for accounting firms, but for all types of sales-based businesses.

In this episode, John and I talk about the connection between compensation and a company’s culture, and how he helped create a better culture throughout the entire firm. He shares why an “eat what you kill” mentality doesn’t benefit your clients, and how the other partners and employees responded to the proposed change in compensation. Assessing your compensation structure is important for all businesses who care about longevity, culture, and sustainability.