At his company, discussions about money are tangible and statistical. People play a big role in setting their own pay. Associates research market rates for talent in their peer group, based on skills and experience. People who want a raise can present evidence that they've acquired a new skill or had an experience that the market would reward with a salary increase. Conversations about performance, on the other hand, are informal and collegial.
Associates meet weekly with a colleague to discuss their current project.
And these conversations never include discussions of pay. Glenroy Inc., the Wisconsin manufacturer that burned its employee manuals, has experimented with a more radical approach to pay. Several weeks after the bonfire, it was time for annual performance appraisals and salary reviews. But Glenroy did need to figure out what kinds of raises its employees would get. Employees decided their own raises.