So my first job in the corporate sector (2006) was in doing salary surveys. I just tried to sketch out a new salary model for a company that's got to deal with lockdown economics. People argue about wages all the time. But the basics are simple.
1. Inequality metrics matter : watch medians and means.
2. All the following points need to be considered within the local universe of a sector's unit economics, margins, volatility, and sales cycles. (Maybe we can unify these variables into a more complete model later.)
3. Everyone should have a really low fixed pay, that's high enough for their subsistence.
4. Everyone should have variable pay, tied to scoped periodic performance ( team / area / company / group / etc. ) , simply as a fraction of revenue or profit, paid out on a periodic basis that varies by sector. (Delay too long, and bad people hang around too long. For example F&B should just do pay-outs monthly for most staff.)
5. You can tag on long-service bonuses, but they have to be relatively linear.
Got any more ideas? Hit me up in the comments.
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