Inputs

  1. Contributor Agreement
    1. Market Rate / month
    2. % Commitment
    3. Monetary Compensation / month

⇒ Monthly Base Salary = Market Rate * Commitment

  1. Assessment Scores

    1. Work Contribution score - has the person delivered on their work commitment and role
    2. Culture Impact score - has the person had a positive impact on the team culture

  2. Performance Adjustment Rate (PAR) - indicates how much a person's salary can be adjusted based on the assessment scores. Suggested default is 20%.

    1. The difference from the initial agreement based on the peer-to-peer assessment scores is first applied to the team points and only after they run out it is applied to the cash (only in the negative direction).
    2. Base Salary can decrease if and only if teampoints compensation goes negative.

  3. Points Multipliers

    1. Time Contributions - this is the output of the above 3 points (agreement, assessment scores, PAR) - or the value a person brings to the team by their work. This multiplier determines how much are the team points valued (more than cash) that a person gets for their Time Contributions.
      • Default is 2X and it increases by 0.125 every 6 months until year 8 which serves a a form of reward for longer time commitment in the team:
        • 0-6m = 2x
        • 6m = 2.125x
        • 1y = 2.25x
        • 1.5y = 2.375x
        • 2y = 2.5x
        • 3y = 2.75x
        • 4y = 3x
        • ...
        • 8y = 4x (stops increasing at 4x)
    2. Material Contributions - this is of someone personally invests money, hardware, or something similar that has a direct monetary value. This multiplier determines how much are the team points valued (more than cash) that a person gets for their Material Contributions.
      • Default is 4X

Example

Algorithm Design

Step 1: Calculate Average Score for each contributor

Average score is the average value for each team member, based on all the feedback numbers they’ve gotten from their team.

  1. Work Contribution score - average of all Work Contribution scores from team mates