Provide Realistic Sales Rewards But a 9-inch pie, no matter how many ways you slice it and how different the portions may look, is still a nine inch pie. The compensation mes- sages have to be reconciled with the compensation available. You shouldn't have a 70-percent message funded by 30 percent of the dedicated re- sources, nor should you have a 30-percent message funded by 70 percent of the pay available. And in all cases you shouldn't have 100 percent of the message funded by resources exceeding your allocation. It is amazing how otherwise financially astute managers will adopt a resigned attitude when told they are overpaying for a particular behavior. They often re- sort to standard reflex answer number one, "It's the marketplace." No it is not. No one can tell a company how to mix its compensation. And certainly no credible survey will tell you to pay 130 percent of total com- pensation for target performance. Forms to Choose From Hybrids aside, there are four basic forms of compensation, each with a different emphasis and application: base pay, benefits, variable oppor- tunity, and non-cash compensation. A brief synopsis is worthwhile so as to establish common reference points as we proceed on. Base pay provides security in exchange for the individual adhering to standards of conduct in dealing with internal and external business rela- tionships, and remuneration for baseline performance results. As men- tioned previously, it is a fixed cost. In all but the rarest of occasions it either stays constant or increases based on longevity, cost of labor, indi- vidual performance, or a combination of these factors. The elimination or decrease in overall base pay, usually the result of downsizing, can be both organizationally dramatic and individually traumatic. Benefit offerings constitute the other portion of security-based com- pensation. Benefits (health and welfare) covers a wide range of potential programs. In most cases, it is the least-understood form of compensation to both staff and management. The programs are expensive, in some cases complicated, and generally over-managed and under marketed. Effective programs are demographically sensitive, tailored to maximizing the population's needs and perceptions. Health plans emphasize wellness maintenance and illness prevention as well as conventional coverage for routine and catastrophic events. Retirement related plans are diversified and positioned to afford the participants maximum understanding and control of their investments. There also exists another group of programs 93