A controversial take perhaps?

Let’s talk about Money

As so many folks are just trying to find some stability and employment right now to pay their bills, this might not be the hottest topic, but I’m curious.

Compensation philosophies and practices have really varied throughout the years, with hot trends leaning towards “pay for performance”, “merit based”, “broad ranges”, etc. All nice buzz words-right?

Let’s put aside the issue of companies actually living and practicing their compensation policies as designed (a topic for another day). What I’m curious about is on a much deeper, philosophical level.

💡Do you think companies should prioritize paying for talent or paying for the job?

If you subscribe to a pure performance based pay approach, you likely have already answered this in your head. Talent- of course. If candidate x is “better” at their job, then they should make more….right?

But at what point does the job limit the pay that’s warranted?

Professional Sports might be a good example- should one athlete make millions more due to popularity if they’re playing the same game? Maybe… if they’re scoring all the points?

This is why companies generally use job pay ranges and apply merit based (or tenure based) increases within these ranges, but there are a lot of industries where the gap might be too big to justify…?

What do you think? 👇🏻comment below!

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