Shopify recently rolled out an extremely … interesting … compensation policy. Basically, the company will now limit pay raises to employees who amass the most points within a competitive ranking system. Those with higher point scores get raises. And others? Well, they’re out of luck, with not even a small raise.
It sounds horrifying, and, indeed the consultancy CTOL Digital says,
“While intended to drive performance, it pits colleagues against each other for pay raises, potentially eroding teamwork. In the short term, this may lead to decreased cooperation and a strained work environment. Long term, it could impact retention rates and hinder the company’s ability to attract top talent.”
Why would any business have a ridiculous policy that is so obviously destructive to morale?
To keep reading, click here: Shopify Just Revealed an Ultra-Competitive, ‘Hunger Games’ Style Approach to Pay Raises