How do we build a pay plan that won't backfire?
You want a plan that rewards good work and nothing else. Understand this now: no plan does that cleanly. The moment you measure something, someone will optimize for the measure instead of the goal. This is not a flaw in your team. It is what measurement does to people. Your group is building this together, which helps — more eyes catch more holes. But it also means more blind spots hiding behind agreement. A room full of good intentions can still wave through a plan that pays for the wrong behavior. Stop asking "is this fair." Ask "what does this plan let someone get away with." That question has an answer. Fairness is a feeling. Exploitability is a fact you can test.
You will never design away self-interest — you can only account for it. Assume someone will chase the number, not the purpose behind it. Your task is not a perfect formula. It is to find where the plan rewards the wrong thing, fix it before launch, and set a date to check again.
What changes unlock by starting
- A plan with known weak points instead of hidden ones.
- A review date already on the calendar before anything goes wrong.
- Shared ownership of the plan's risks, not just its goals.
- Less reliance on good faith, more reliance on structure that holds up without it.