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by lmeyerov
2071 days ago
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In software co's, profit sharing is split between equity vs commission, where equity for hard-to-attribute & motivate stuff and commission for easy-to-attribute-and-motivate stuff. Doing profit sharing incentives for devs risks getting weird quickly. -- It's hard to measure contributions of a dev in a team of 5-10 (how much was them, another dev, the PM, the designer?) while pretty clear for say a sales + sales eng pair. -- Likewise, there's a danger of confusing incentivizes of having a dev make commission-based decisions, esp. when counter to what a PM needs to incentivize. in a sense, part of the PM's job is to prevent sales/marketing/management from confusing the rest of the org! For product orgs, some companies do incentives and promotions based on profit/loss measurables ("1% datacenter power savings => $10M/yr savings => ..."), I think team-based w/ some sort of hierarchy. Alternatively, Cisco weird spin-in system worked well... for those liked by the involved leads. When _not_ a product org and a more direct line to $, like a sales eng supporting sales, or a dev supporting a quant, easier to go commission/profit-sharing based.. |
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