Opinions expressed by Entrepreneur contributors are their own.
As Pat Byrnes studied the financials for his company, ActuarialConsultants Inc., he could not escape one disheartening fact:Profitability for his Torrance, California-based pension consultingfirm was slipping. "Expenses were going up, and profitabilitywas going down," says Byrnes, the company's president andco-owner.
The root problem: Year in, year out, employee salaries keptrising due to annual cost-of-living increases, but toughcompetition forced Byrnes to keep a lid on the fees he chargedclient companies. "So I drew a line in the sand and said,`There has to be a better way to compensate employees,' "says Byrnes.
Continue reading this article — and all of our other premium content with Entrepreneur+
Join the internet’s leading entrepreneur community! With your subscription you’ll get:
- Unlimited access, including premium content
- No ads
- Subscription to狗万官方magazine
- Four free e-books a year
- Subscriber-only events with our experts