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Management that engages in that frees up more money for others who want to negotiate. Why should management give money to people who don't want it?
by fleitz 15y ago
Management that engages in that frees up more money for others who want to negotiate. Why should management give money to people who don't want it?
- SatvikBeri 15y agoIt's a productivity killer. If everyone knows that John is a better developer than Bill, but Bill gets paid twice as much because he understands corporate politics, then people focus on politics, feel like life is unfair, etc. The money saved by underpaying your best employees is rarely worth the inevitable productivity hit and loss of talent.
- wyclif 15y agoYes, I agree with Cohen here. Smart companies reward productive, smart employees incrementally, and don't place the burden of negotiation entirely upon them. This is not to say negotiation isn't possible or beneficial to the employee. But if a company rewards employees with regular raises and profit-sharing, negotiation isn't as political.
- deleted 15y ago[deleted]
- rayiner 15y agoIt creates bad incentive structures internally. Especially when you factor in the findings of behavioral psychology, which suggest that using pay as a performance incentive can actually decrease the quality of peoples' work. Law firms have an interesting model where everyone is paid in lock-step by seniority, and in practice it works extremely well. Employees uniformly hated the moves some firms made during the recession to get rid of lock-step compensation. I think it actually boils down to a degenerate case of Fog Creek's very uniform compensation scale (there are far fewer variables for in a law firm than a programming shop).