Shopify creates new career tracks with even compensation for managers and ‘crafters’
Shopify Inc. is revamping its staffing and compensation model.
The Ottawa-based e-commerce company says staff will now be split into two career tracks: managers and crafters.
Compensation levels will be equivalent regardless of whether someone chooses to be a manager or a crafter.
Shopify says the model will reward people for the impact they make on the company regardless of whether they are a manager or not.
It adds the model bucks trends that saw companies only succeed at incentivizing and rewarding managers because crafters will now have just as rich a career progression.
Shopify’s moves come after it began giving staff a “total rewards wallet” last year that allows them to choose between cash and stock options for their compensation. It was implemented in the wake of Shopify’s layoff and as its stock came under pressure, falling from a 52-week high of $113.43 to a low of $33.
In designing the program, Shopify completed an extensive benchmarking exercise to ensure salaries are competitive, but executives warned Flex Comp will likely weigh on its 2023 outlook.
Historically, allocations staff made sat at around 70 per cent cash and 30 per cent equity, Finkelstein said.
“I think Q4 allocations may be skewed slightly more cash than those levels, but it’s sort of expected that it will vary each quarter,” he said.
“Cash gives certainty, but if you understand the business, obviously, you know, equity is what a lot of people want because they want to be able to participate in the upside there as well.”
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