[dgb23]

The problem is that in the end, power, negotiation and social currency often dominate over merit (such as effort, experience etc.) when it comes to compensation.

Even if you actually do measure and agree on metrics, then the measurement can easily become the goal for those who are not intrinsically motivated. Work ethic can't be taught by dangling carrots in front of people, because acquiring the carrot becomes the goal instead of moving the cart. This can be detrimental in a highly collaborative workplace.

Having a flat, generous salary might solve this problem, because you filter out carrot hunters and get cart movers.

> I bet it works great if you have a small team, are extremely picky about hiring, and quickly fire bad hires. Otherwise it will be awful.

Finding the right people to work with is difficult regardless. The same worker can be miserable in one place and flourish in another.