March 6, 2023

Shopify is rejigging salary-based rewards for rising employees as part of a slew of tactical efforts aimed at tackling issues faced by its past compensation structure.

Shopify employees will be labeled as managers or crafters under the new compensation model, and will be evaluated on their ability to manage direct reports or deliver on products and projects, respectively. The distinctions, according to Shopify, will eliminate confusion, create clear responsibilities, and lead to “unlimited growth potential for crafters,” with the goal of incentivizing more than one group of employees.

According to the company, the idea behind the change is that businesses have traditionally rewarded those who take on more management responsibilities with higher salaries and more opportunities for career advancement. However, not everyone aspires to manage other people. Its goal is to recognize employees who continue to advance without becoming managers. Being a manager would have no effect on compensation in the future.

Employees will initially be assigned to one of the tracks based on their current responsibilities. However, they will be asked to state their preference and move into the track of their choice at a later date. There are no cash rewards or bonuses for selecting either of the tracks.

“Most employees want their primary job to be building, which is why they came to Shopify in the first place,” Chief Human Resources Officer Tia Silas told Insider via email. “That’s also why we introduced scope and mastery, so crafters can spend a majority of their time building, and they can continue to rise up the mastery levels and make more money.”

The sources for this piece include an article in Betakit.