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by chernevik 5279 days ago
It's a very thoughtful post, they've put the usual Fog Creek thought into this. But I suggest that one year is not enough time to properly evaluate the policy.

For one thing, I wouldn't say this is known good until the organization has demonstrated to itself that it can recruit / train / inculcate new people into this system. I'd suggest they'll also want to keep an eye on how the sales team evolves over time -- habits die hard, but they do die, and it may be that the commission system served to ensure that some positive habits were maintained.

For another, this may be suited to their competitive niche, or even this particular moment in their market penetration. If the product is selling itself, if the market is growing for everyone, then commissions may not help and may be counterproductive to the image and relationships they want to build. The situation may change if the market position matures and stabilizes.

I'm not saying any of these _will_ be issues. I'm just saying that corporate cultures develop over periods of years, and that comp systems are important signals into that development. It sounds like this is going great, and good management will always be looking at how corporate culture is moving -- but I would think management would want to keep a careful eye out for unintended consequences of this for quite some time.

(And they may well be doing just that. But the post seems a little more definitive.)