Managed Services Salaries and Raises: Treat Everyone the Same?

At Fog Creek Software, every worker at the same level is paid the same salary. And when one gets a raise, they all do, according to Inc.com. I certainly support equal pay for equal work. But I wonder if Fog Creek’s system works. And I wonder if managed service providers are willing to give it a try.

According to the Inc.com article:

I’ve been hearing more and more buzz about this type of pay scale formula. To be sure, many Americans are tired of unfair pay policies and/or pay systems where you earn less than a peer even though you’re doing a better job. Of course employees should be paid at equal levels for equal work.

But is it that simple?I’ve always been of the opinion that pay systems are self policing: Work hard and bring value to the table, and your employer will ultimately pay you a fair wage. I always was motivated to know that I could earn more than a slacker down the hall because I was working harder and smarter.

Of course, my view of the world is flawed: Some lesser employees may still receive a better paycheck than you, based on their years of experience or previous achievements that are now very dated. But you have the freedom to look for another job at a better salary. Or better yet, you have the freedom to start your own company.

Still, I am simplifying matters here. And my views could be way off the mark. I wonder if Fog Creek is onto something with their approach to salaries. And I wonder if MSPs are considering similar moves.

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