from Gergely Orosz | by Gergely Orosz

Thinking back how much time every year me and other managers would spend arguing on whether X or Y should be in “strongly exceeds” calibration bucket or not. And how the difference in bonus would still be minimal in the end, and people getting the most sometimes still unhappy.

While it’s easy to throw dirt on any performance process (especially from the outside): the reality is that any approach you choose will have downsides, and people unhappy about it. The performance review process and culture+incentives go hand-in-hand and need to be deliberate.

Two extreme performance review processes: 1. Netflix. No performance review. No bonuses. Top of market comp. But fail the Keeper Test and you’re fired. 2. Uber up to ‘16. Stack ranking with extreme rewards for the top 0.5-1% at the top, at 5/5 (~10x target bonus).