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Hey, wait – is employee performance really Gaussian distributed??

tl;dr:It’s probably Pareto-distributed, not Gaussian, which elucidates a few things about some of the problems that performance management processes have at large corporations, and also speaks to why it’s so hard to hire good people. Oh, and for the economists: the Marginal Productivity Theory of Wages is cleverly combined with the Gini Coefficient to arrive at the key insight.Ahhh, it’s Q4 at Fortune 500 companies. That means it’s performance management season, when millions of employees are ra...

Read more at timdellinger.substack.com

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