Should companies pay for performance?

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Should companies pay for performance?

Google made headlines this week after evolving their compensation model to pay bigger bonuses to top performers, and smaller ones to those who aren’t delivering strong results. I shared a few thoughts on LinkedIn as well, but the headline is, I like it.

I expect more companies will move in this direction as a way to retain top talent at a time when growth is stagnant and they’re not able to offer as many pathways to promotion. The rest of the tech world consistently seems to follow the lead of big tech.

I’ve noticed more and more of a shift to outcomes and impact. Back in 2021-22, many of these companies were hoarding talent, even knowing they weren’t getting a lot done. Now, I definitely see higher expectations in my own workplace for the caliber of talent being hired, and for the expectations once people are in seat, with quicker decisions to cut ties and move on to someone else if things don’t pan out.

Questions I might be asking if I were applying to companies with these sorts of plans:

• How is impact defined in this role?

• What does success look like in the first 90 days?

• What annual goals does this position work towards and how do those connect with the broader priorities of the business?

• Do members of this typically meet or exceed their goals, and if not, why is that?

Have open conversations up front to make sure you’re set up for success when taking on a role where your compensation can be significantly impacted by bonuses!

In the News

• Duolingo made headlines this week with their announcement that they will be an “AI first” company. More of this to come from more companies which is why everyone should be getting comfortable in this space!

• Looks like Meta had yet another record quarter…even after all those layoffs earlier this year.

• As a former educator who spent a lot of time teaching in charter schools, it’s a movement I know longer support. Yes, there are some bright spots and positive things happening, but there’s extensive corruption in the space with far less oversight around what’s happening with adults or children and ultimately, privatization of public services has never led to a positive outcome. I’m really worried about what the implications of allowing religion into public schools could be if the Supreme Court allows this.

🙋Answering Your Questions🙋

Each week, I’ll answer one (or more!) of your questions in this section. You can submit your questions here.

Hmmm, the first question I have is what field you’re in. It could be tied to that as companies are ramping up hiring in some areas while they may be more cautious in others.

But I also think that timing coincides with the start of serious economic instability across the US, and given how volatile things are, many companies don’t know HOW to react and are in a holding pattern waiting to see how things shake out in the world. That may be impacting you as well.

Finally, the applicant pool you’re up against continues to grow as hiring stagnates and more and more people are being laid off.

Some steps you might take:

1. Broaden the types of roles, industries, levels, etc. that you’re applying for.

2. Lean on networks where you can. With high app volume, sometimes a referral or introduction can make all the difference.

I would keep this section minimal “career break while completing coursework in AI and tech sales, and partnering with several local businesses to support their sales and marketing teams.”

If you have a few solid experiences during this time, even if not fully relevant, you could also label this section “consulting work” and then underneath, note a few of the jobs you’ve had. No need to go into too many specifics, you could simply note things like, “created HR handbook and new employee onboarding process for a growing non-profit in the healthcare space”. This can help make this period look more cohesive and intentional.

A career accomplishments section at the top could also be a way to first draw their eyes to relevant experiences/impacts before going into the rest of the resume.

Finally, connecting with people at the companies where you’re applying can be a good way to get an “in” so that blip on your resume doesn’t feel so concerning to them (not that it should be a concern, we just know that it often is.

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