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The problem with performance-based pay is that there are quite a few variables outside your control. Say you're doing a simple A/B test that you've correctly de
by pierrefar 16y ago
The problem with performance-based pay is that there are quite a few variables outside your control. Say you're doing a simple A/B test that you've correctly deployed. Now imagine Big Boss Man (or Big Client Man) decides to change something else on the website that is likely to affect the results of your test. What do you do then?
Suppose the website goes down and the company doesn't make its millions and now they can measure no performance increase.
Then there is politics. Big Boss Man might go to his Big Big Boss Man and tell him that he deserves the pay rise because he hired you or brought you in as a consultant, and so you're just a tool to his genius. Good luck with that one.
My point is simple: if the bosses or clients don't want to pay you performance, they can find a million ways to do so. Tough contracts only go so far and my suggestion is to never enter such a relationship unless you're 100% trusting of the bosses or clients.
- redrobot5050 16y agoWell, in the case of these financial programmers, they negotiated a simple percentage of the daily take. In a sense, they've negotiated themselves into the "VISA" position. Use me, and life is much easier and you make more money over all -- but I get a cut out of every transaction I helped you with. Again, for these programmers, who are literally in the business of making money, its a great approach.