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by wpietri 5165 days ago
In the dark days when I worked for financial traders, once a year the company would set aside a pool for bonuses and then try to figure out how to share it out based on contribution. If you went around and asked people what percentage they deserved and then added them up, the total would never be less than 300%.

I don't think most people are quite as bad about this as financial traders, but I imagine no group's numbers add up to 100% exactly. What's the dynamic like at Valve, and how do you make sure people feel fairly treated?

2 comments

So you are saying the requested bonuses were 300% of the pool set by management? There are two possibilities. One, the expectations could be too high. Second, the pool could be too small. Your assuming only the first is correct?
Sounds like each specified a percentage of the pool they deserved, and the percentages added up to >300.
In this particular case, the bonus pool was basically the profit of the firm, so the pool was not variable. But my point was more about the perception of one's own contribution versus everybody else.

Another way to look at it: a friend's marriage counselor said that if each member of the couple thinks they're doing 50% the work, that leaves another 50% of the work undone.

How would it be advantageous for anyone to ask for less than 100%? Nobody is ever going to get more than they ask for, after all.