"Best practice is either a product that somebody wants to sell and as a result it's common, but not necessarily proven as best." Paul Reiman is the founder and managing partner of Novo Insights, a Chicago-based compensation consulting firm, with nearly 30 years in compensation as a consultant and in-house leader. His book Pay Differently, out October 5, argues that pay transparency exposes the shortcuts compensation teams have relied on for decades. We cover the myth of best practice, the loyalty tax, job architecture as the office refrigerator, why the offer letter draws less scrutiny than the merit cycle, and whether sales commissions survive consumption-based selling. What we covered: Best practice as common practice with a better publicistThe telecom sales leader who asked a 22-year-old Paul, "Best practice according to whom?"The unproven rule of three measures in a sales plan, none under 20 percentWhy candidates who refuse to apply without a range move employers faster than legislationThe $100 toaster on sale for $50 the next dayThe fintech firm that turned down a star analyst asking for a $1 million salaryThe 75th percentile, and why a percentile is not a philosophyJob architecture as the office refrigerator and its 180 ketchup packetsThe manager who automates three roles and loses every direct reportThe loyalty tax, and why stayers earn less than leaversMerit budget benchmarking, and why to budget 9 percent next yearSame-store pay growth, borrowed from StarbucksLori the recruiter, her Coffee is for Closers mug, and fixing the front doorSelf-set pay at Semco and Smarkets, and crunchy or creamy peanut butterThe printing company that replaced commissions with salary and profit shareThe hand-drawn overhead transparency behind the 50/50 pay mix slide People: Alfie Kohn, author and previous guest on this showDan Ariely, behavioral economist and previous guest on this showAndrea LaRowe, 37signals, previous guest on this showStefan Gaertner, Syndio, previous guest on this showDaniel Kahneman and Amos Tversky, psychologistsTeresa Amabile and Steven Kramer, researchersBoris Groysberg, Harvard Business School professorLouis Kelso, economistPhilip Slater, sociologistJerry Colletti, sales compensation consultantBryan Briscoe, Paul's longtime co-presenter Books: Pay Differently, Paul ReimanChasing Stars, Boris GroysbergThe Progress Principle, Teresa Amabile and Steven Kramer Articles: Prospect Theory: An Analysis of Decision under Risk, Daniel Kahneman and Amos Tversky, Econometrica, 1979 https://www.jstor.org/stable/1914185 Organizations: Novo Insights, 37signals, Semco, Smarkets, Haier, Morning Star, Nucor, Handelsbanken, Spotify, Salesforce, Starbucks Find Paul: LinkedIn: https://www.linkedin.com/in/paulreiman/ Website: https://www.novoinsights.com Book: https://paydifferently.com Music licensed through Soundstripe. Code: DLQOKHPSWUMSTCMH.