May 14
Five Levels of Commitment-Based Compensation

Five Levels of Commitment-Based Compensation

Wait, what? How do you pay someone based on their commitment? Can you even quantify that?

Paying someone based on how committed they are might sound bizarre, but it is possible. Not only that, but it can actually be a good idea.

People work for numerous reasons. Most of the time, it’s for the pay. But there are those who are largely motivated by passion, a goal, or a vision. Furthermore, the level of employee commitment determines what you can and cannot expect from your team.

Developing the right compensation package is never easy. In fact, there’s an ongoing debate about the inefficiency of the straight salary package and the inaccuracy of performance-based pay. So, a third option emerged. Enter commitment-based compensation.

Here’s how it applies to remote workers.

Commitment Level 1

Commitment Level 1

There are remote staff who work even if they don’t need to. They might already have full-time jobs or even their own businesses and might just be looking for extra income. Thus, their level of commitment to your company might only be at 20 percent.

For this classification, don’t expect them to commit beyond what you pay them. After all, their compensation from your company might only be a minor part of their income. Still, you can definitely expect them to put in the work for the agreed working hours, even if they might be more focused on where they get the bigger 80 percent of their income.

For workers like these, going rates are usually fine.

Commitment Level 2

Commitment Level 2

Let’s say the remote staff at this level is 40 percent committed to your company. Their compensation might form a significantly bigger chunk of their income, but they might still have other sources that they would prioritise. As with the previous level, these remote workers will fulfill their duties, but don’t expect them to work overtime or beyond the job description either.

If workers at this level are especially great at what they do, you can offer them wages that are a little bit higher than average to retain them. However, be mindful that they might only work with you for a limited time.

But as long as they get the job done, that’s perfectly fine.

Commitment Level 3

Commitment Level 3

This is where things get interesting. Remote employees at this level most likely get at least 60 percent of their income from you. Therefore, their commitment levels are likely to be higher.

Remote workers at this level are usually more willing to allocate more hours working on your projects. They will probably also be more flexible about working additional hours to help you reach your targets. (Provided that you compensate them properly for these, of course.)

However, there might be times when they might need to step back and focus on other commitments as well.

Commitment Level 4

Commitment Level 4

You can expect a high level of commitment from your remote staff at this level. If 80 percent of their income is coming from you, this generally translates to even higher levels of commitment. Even if they have a part-time job or a small business on the side, they would still prioritise your company’s needs if the need arose.

Employees at this commitment level are likely to put in long hours to meet tight deadlines. Be sure to compensate them generously so that they’re motivated to stay.

But do remember to check in with them from time to time in case they need a bit of wiggle room for other things. They aren’t at the highest level of commitment either, which brings us to…

Commitment Level 5

Commitment Level 5

Employees at this level often give 100 percent of their effort, time, and commitment. Chances are, they’re highly specialised remote staff at the top of their field and like to focus on one long-term, premium client. Make sure it’s you by paying them exceedingly well.

Starting a company can require working at least 60 hours a week. Such an endeavour demands time, effort, and yes, commitment. Finding (and keeping) people at this level can go a long way towards helping you achieve your vision.

It’s tempting to go only for the highest levels of commitment when hiring people. However, that’s not always possible. Also, each role is diverse and might not necessarily require the same levels of commitment (and their corresponding paychecks). Hence, it’s perfectly fine if the levels of commitment among your remote staff vary as long as you get the desired outcomes.

Fortunately, finding the right people for each role has been our strength for more than a decade. Remote Staff has been cultivating a rich talent pool of remote Filipino workers for more than a decade. Whether you need a Level 2 writer, Level 3 graphic designer, or a Level 5 bookkeeper, we’ve got just the person for you.

Call us today or schedule a call back and let’s get started.

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About The Author

Serena has been working remotely and writing content for the better part of the last decade. To date, she's written for Pepper.ph and Mabuhay Magazine, among others, and has churned out more than a thousand articles on everything from The Basics of Stock Market Investing to How to Make Milk Tea-Flavored Taho at home. Hermits, aspiring hermits, and non-hermits with interesting project propositions may email her at serena.estrella10@gmail.com.

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