Wednesday, May 02, 2007

 

Proposed Solution to Bell Curve Compensation...

While we can all acknowledge that Bell Curve Compensation IS an Anti-Pattern, we should also propose solutions to help make this situation better...



The compensation model used by a lot of law firms could be worthwhile examining. "Non-partner" IT folks would get a base salary determined by the partners, with the odd bonus here or there. the partners would get no base salary, but would divide the money up evenly (or by ranks, allowing junior and senior partners), and also be subject to bonuses. (Typically, partners would in pratice have a base salary, paid as an advance on their revenue share).

Of course folks would debate that IT is a cost-center and therefore revenue-orientation should be best left to consulting firms but isn't one dimension of alignment require folks to consider that everyone is a participant in both revenue generation and expense creation?

IT folks would become full partners by being proposed by two or more partners and being voted in. Personally, I would see this working at the company level, not the team level. I've got a gut objection to IT folks being paid different amounts based on what project they work on (deployment oriented compensation) especially when they don't have much control over what project they get assigned to...




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