Data-driven Compensation System



In the world of software products, we hear a lot of about the importance data-driven decision making. We should double down on this and even bring in a data-driven compensation system for leaders. Here I talk about product design leaders, however the logic should pretty much apply for one and all working towards the success of a specific product.

What if we tie our salary compensation to the outcomes of our work?

Are UX leaders ready for a design-driven and data-driven compensation structure? We all agree that product design has a direct impact on the business numbers. Products are driven by rich data patterns to improve the user experience tied back with business objectives.

If product design is driven by data, why not the compensation of product designers? Having said this, products must have clearly defined the UX metrics. The question is can we tie these UX metrics to the performance of design leaders and product designers?

Companies could pay for results delivered as they eventually get to hire talent that can promise them results. Conversion based compensation is based on the business and product context. Its not always about the number of users for every product.

Data drives design, design drives conversions and this in turn should drive the compensation.

Companies are better off paying for results.

Hiring based on tenure, work experience, and within a closed network seems totally out-fashioned and a gamble for businesses that are eager to disrupt the market or bring about a radical change through their products. I am not negating the fact that work experience matters in bringing a lot of wisdom and expertise on the table, however there are exceptions and not everyone delivers at work.

Today we still have a reactive mechanism of doing illogical goal setting and conducting performance assessments after an entire year at work. This new pay-for-results mechanism is proactive by nature and works for high paced talent and companies, giving control and clarity to both parties.

Also anything that is data-driven is objective and not subjective. The assessment and reward process can be as transparent as possible to build the right motivation and culture in your organization. Data doen'st lie. The chances of fooling around and showing favouritism by some managers can be curbed by incorporating this process.

As UX designers we are avid advocates of data. Shouldn't we take this to the next level by betting our careers on data as well?

Well, all of this works, only with design first companies, with clear quantifiable design metrics, a culture of innovation and shared vision to deliver only the best user experience.

This is real design advocacy for data-driven design.

This is UX thought leadership in action.

Are you game?

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