Most companies reward people for rising in management.

The higher your tier, the higher your compensation.

But no everyone is meant to be a manager.

Some people are specialists.

Some engineers are meant to engineer.

Some accountants are meant to account.

Some salespeople are meant to sell.

If the only path to increased compensation in your company is to become a manager, you’re incentivising your specialists to move away from the skillset they’re excellent at and towards the skillset they’re mediocre at.

Rather design employee compensation to reward both managers AND specialists.

Incentivise people for what they’re good at.