Three Types of Labor Wages

In the business world, there are various approaches to compensation, each with its unique features. The first and most common is a salary. This method implies low risk but also limited income potential. An inevitable economic clash arises between an employer's aim to reduce expenses and an employee's desire to lessen their workload while maintaining a decent income level.

The second method is compensation through shares. Nowadays, anyone can invest in shares of even the largest global companies, sharing in their success. There's also the option of investing in startup shares, which, however, comes with higher risks due to the uncertainty of these companies going public.

The third model is revenue sharing. Within a single company, all three approaches can be combined: salary, stock options, and a share in the company's revenue. Take, for instance, the career journey of someone in a payment system, starting as a Deputy CEO and then becoming the CEO. Their income is directly tied to the company's profits, and the more regions and partners they bring in, the higher their earnings. This synergy between the employee's and the company's interests creates a powerful incentive for active participation.

These models demonstrate how businesses can motivate employees in different ways, each with its own advantages and risks. Visit our forum and share your opinion on the pros and cons of each of these models! Open discussion