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It’s complicated to know, because identifying which of your employees is providing the results is a hard problem. In practice it often devolves into people spe
by NineStarPoint 4y ago
It’s complicated to know, because identifying which of your employees is providing the results is a hard problem. In practice it often devolves into people spending at least as much time marketing themselves to management as they do actually being productive, and optimizes for people who are good at that marketing being in high positions instead of people who are most productive. The larger the company the more pronounced this issue is, which is why so many large companies aren’t kicked out of the market despite their lack of ability/willingness to pay according to results.
- coffeeblack 4y agoThat doesn’t matter either. If you have an average employee who complains a lot and he may leave, but that would be a hassle for you, then it makes sense to pay him a bit more so he shuts up and you don’t have to look for a new person. Otoh, if your underpaid star developer sits quietly in his corner and all you have to do is to pat him on the back once in a while to keep him happy, why would you pay him more?