> we'd see some people making 10, 25, 50 times as much
Ha, I hadn't thought about this aspect at all, thanks. But would you necessarily need to assume the pay should be directly proportional to performance? Perhaps earning double as much when you're 10x more effective is more reasonable, and then triple at 100x - say, a logarithmic scale? Also, productivity and hours spent are both only partially reflecting the total value someone brings.
Well, in any case, I was thinking about _some_ kind of system where your value would be expressed and not some irrelevant metric like age.
I think it depends how you define "effective" and "performance."
For reasonable definitions, I think compensation would have to be directly proportional to effectiveness, such that being twice as effective results in twice the compensation.
That would be the case if "effectiveness" meant "your responsibility for the firm's revenue." Otherwise, what are you measuring, such that you can be "10, 25, 50 times" as effective? Efficiency of coffee making?
Ha, I hadn't thought about this aspect at all, thanks. But would you necessarily need to assume the pay should be directly proportional to performance? Perhaps earning double as much when you're 10x more effective is more reasonable, and then triple at 100x - say, a logarithmic scale? Also, productivity and hours spent are both only partially reflecting the total value someone brings.
Well, in any case, I was thinking about _some_ kind of system where your value would be expressed and not some irrelevant metric like age.