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Shopify's Zero Sum Mastery Program

Apr 23, 2024

Nolan and Kelli discuss Shopify's Mastery Program where employee raises are tied to their mastery score, creating a competitive workplace environment. They compare this approach to traditional performance evaluation systems and delve into the implications of internal competition. The podcast explores the evolution of performance rating systems and innovative strategies for employee involvement in performance management.

13:20

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Quick takeaways

Shopify's mastery program ties employee raises to mastery scores, promoting internal competition.

Companies like Shopify shift towards zero-sum game approach for allocating raises to top performers.

Deep dives

Shopify's Mastery Program and Performance Reviews

Shopify's mastery program is now incorporated into performance reviews, with employees having to compete for raises based on their mastery scores. If an employee's mastery score does not increase, they do not receive a raise. This approach reflects a shift towards value-based merit increases where employees are compared against their peers. The scoring system ranges from 1 to 50, potentially leading to subjectivity in performance evaluations.

Introduction

2min

Exploring a Company's Performance Rating System and Merit-Based Increases

2min

Exploring Self Reviews, Ratings, and the Zero Sum Game at Shopify

2min

Innovative Performance Management Strategies and Employee Involvement

2min

Exploring Impactful Performance Review Systems in Companies

5min

In this segment , Nolan and Kelli discuss new information about Shopify's Mastery Program. Employees are assigned a mastery score, and if their score does not increase, they do not receive a raise. They cover the implications of this new approach, comparing it to previous systems used by other companies which also relied on ratings and algorithms to determine merit increases, and discuss the concept of creating a zero-sum game in the workplace. While not exactly new, internal competition is front and center in Shopify’s transparent new approach.

HR Heretics is a podcast from Turpentine.

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LINKS:

Shopify Mastery: https://www.shopify.com/news/mastery

Information article: https://www.theinformation.com/articles/shopify-employees-go-head-to-head-for-raises-in-new-ranking-system

KEEP UP WITH NOLAN, + KELLI ON LINKEDIN

Nolan: https://www.linkedin.com/in/nolan-church/

Kelli: https://www.linkedin.com/in/kellidragovich/

TIMESTAMPS

(00:00) Shopify's Mastery Program

(04:34) Exploring the Broader Implications of Performance Review Systems

(08:59) A New Era of Performance Management and Employee Evaluation

(09:04) Sponsor: Attio CRM

(09:57) Nolan’s Time at Carta