All in career development
As I have written before, equity is not about being equal. And as I have covered many, many times before, I am a true proponent of performance-based pay. Call it variable, call it personalized, call it incentive pay. Whatever you call it, I have made the argument that some people should get paid far more than others.
I like envisioning pay transparency using the idea of windows. There is a great reason we created windows many ages ago. They let light in. They allow us to look out. They can be designed to let in the fresh air, and they can provide coverage for those things not meant for the eyes of others.
“If you have to think about it, you shouldn’t do it.” In other words, if you didn’t have the trust and confidence in yourself in doing it right, you were probably just going to get hurt.
Career progression has historically focused on providing growth for individual contributors and managers. Both roles are essential and pay for one path relative to the other can reflect this. Earning potential is linked to the skills and talents of the individual, their performance, the performance of the department in which they work, or the company as a whole.
I recently attended a compensation conference and there was great speaker, Elizabeth Borges of Github, who covered the topic of pay disparity from new angles. She discussed some of the root causes of gender inequity from the perspective of psychology (among other things.) During the Q&A the audience discussed some of their company’s challenges and successes. It was good to see that many companies were taking active roles in addressing historic inequity, but disappointing that most still had issues with avoiding inequity in the future.
The more useful type of tension can be as magical as the tug of a helium balloon on the string in a child’s hand. It can also be equally difficult to control and similarly capable of escape. It can also be as dynamic as launching from a trampoline. Learning to use it properly takes practice, but the results can be pretty impressive. This is the tension that effectively links pay and performance. It is also the tension that links groups, and entire companies, together into a stronger, more cohesive entity.
43% of Millennials and 61% of Gen Z plans to leave their current jobs within two years. Only 28% of Millennials and 12% of Gen Z plan to stay for five years. First, that’s a big ol’ gap! Second, this means that the majority of these workers do not intend to benefit from the entirety of their Long-Term Incentives (LTI). In the case of LTI awards with 3-year cliff vesting (like many RSUs), they don’t plan to get ANY of the value. This creates Opportunity 1 for new, more effective, approaches to LTI.
So, why did I shut down my growing company to join another? I did it because I want to help as many companies succeed as possible. The decision, although somewhat melancholy, is also invigorating, exciting, and full of potential. I cannot wait to share new ideas, services, and experts with all my current clients and every company I am lucky enough to work with in the future. Give me call, send me an email, or shoot me a message if you’d like to chat. (We are also hiring, but only the best should apply.)