Holacracy Community of Practice Archive, 2015-2019 Community Holacracy Web Site

varied compensations format.

What can be the compensation policy when

1. some people can come for just one accountability

2. some take few and give more time.

3. Some do periodical jobs.

4. Some are founding partners, who may or may not give all their time and have varied time engagement.

Any one with creative strategies they have worked out for diverse work arrangements. 

Can compensations be time commitment based or accountability based, and how do we calculate and have fair compensations of profit sharing for all. 

5 Replies
Olivier Compagne

Hi Shammi Nanda. At HolacracyOne, we have people at different levels of time commitment, which we assess in percentage. Basically, sometime full time is at 100%, someone working 4 days/week is at 80%, etc. 

We decide the compensation level based on our badge system — basically a system where people can earn "badges" for the skills they contribute. Some skills are more valuable than others, and different set of badges have different levels of compensation. 

Then if someone is part-time at 80%, they will earn only 80% of the target compensation that their badges can earn.  

This only for "work contribution", or what would equate to a salary. The founder is compensated under the same system, without extra for being the founder. However, the founder (and others) have shares of the company, for which they earn "dividends" too.

Hope that helps a bit. Note that the badge system I'm mentioning could be replaced with a simpler approach — my main point was that we determine compensation regardless of time commitment, then we apply the time commitment percentage to that result.

shammi nanda

Thanks Oliver. I see  u have the skills and the time taken into account. also like that the founders get dividends too, that takes care of the time put in by some people in the company as well as some for putting capital, i would call this equivalence for capital and labor. 

would you be open to share more details. as it will help us in framing our policies. especially how do u design the shareholding and dividend system. if you feel more ease sharing on my mail u can write to me at shamminanda@gmail.com

Olivier Compagne

[@mention:568484858377802720] I invite you to look at HolacracyOne's operating agreement; you can find the link on this page: https://www.holacracy.org/hola...ance Search for "Class C Units" and "Class P Units", you will find details about that.

Monica Expositor Blasco

Hey [@mention:449411339497350002],

fyi the link doenst seem to work:

"Not found, error 404

The page you are looking for no longer exists. Perhaps you can return back to the site's homepage and see if you can find what you are looking for. Or, you can try finding it by using the search form below."



Olivier Compagne

Thanks [@mention:548355922639373031], I just fixed the URL in my post