Meaning ● Dynamic compensation strategies, in the context of small to medium-sized businesses (SMBs), refer to adaptable systems for rewarding employees that directly align with company performance, growth targets, and the successful implementation of automation initiatives. For SMBs navigating rapid growth, fixed compensation structures can quickly become misaligned with employee contributions, especially as businesses automate processes. These strategies recognize the evolving roles and responsibilities spurred by automation, ensuring talent is appropriately incentivized and retained. ● Furthermore, such approaches often involve a mix of base pay, performance-based bonuses tied to key performance indicators (KPIs), profit sharing, and equity options, calibrated to incentivize behaviors that drive SMB growth and adoption of automated workflows. ● Successful dynamic compensation plans also factor in individual skills development and contributions to process improvement related to automation.
