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Industry Type: IoT

I want make startup which the Leader is just formality. And so the system of startup basically everyone in startup are called Contributor:

There are two type of contributors.

  • Capital Contributor, contributor who donate money to company.
  • Effort Contributor, technical worker who made product or did a subtask.

Every Contributors have they own Capital Contributor Percentage (CCP) which depending how much every single of them donate capital (Individu Capital Point /ICP) to company compared by total of company capital (TCC) and Effort Contributor Percentage (ECP) which depending how much effort every single of them (Individu Effort Point / IEP) compared by total another effort from another contributor (Total Company Effort / TCE)

So the summary is...

CCP is calculated by:

CCP = ICP/TCC

ECP is Calculated By:

ECP = IEP / TCE

Hence, for sake of justice, the salary for every contributor is depending on Company Income (CI) and maybe different each other because of this rule but it's justice and fair.

Salary=[ (CCP×CI)+(ECP×CI) ] / 2

Now to the question, It's easy to measure ICP because it's trackable so every contributors can see how money history In and Out without feel unfairness, Who used it and who just donated every contributors can see and so on without feel unfairness because It's obviously measurable objectively. Since it's trackable, we don't need find someone who most deserve to judge value of ICP every contributor because there's proof from money history.

How about IEP, how to measure every individu effort? Who deserve it? I wish no one deserve it because at here everyone will be contributor, democracy maybe applied. Also every departmant had different characteristic. For example If IEP is depends on line of code, then it will be unfair for embedded system engineer who just use few code. While software engineer have much code, also its risk with manipulation of unnecessart line code.

I want IEP is depending with something universal

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    Just an observation: in the first years when your company is not making a lot of money, those investors will get little sums they aren't interested in, while individual contributors will make so little they cannot afford to work for you... maybe put some real numbers in there and make sure your systems works, even if you could measure individual contribution fairly.
    – nvoigt
    Dec 20, 2021 at 10:35

1 Answer 1

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You can't.

Your question seems to be based on ideas that you can determine a system which is fair and just to everyone. That is not possible. Hence, belief that your new system (described by only three equations) will be regarded without any negative feelings towards it is completely unfounded. And really, your goal is not to make everybody happy or to make a perfect salary system. Your goal is to found a company and make it function.

The right way to determine a "fair" salary is to research the market (to get an approximation how certain abilities are valued at the moment) and reach an agreement with your potential employee. Or to reach an agreement between the investors, if you are saying that all of them are going to be contributors.

As for writing an equation system to determine a salary, I think you have an idea of how complicated it really is. The last paragraph of your question implies that. It would be beneficial to you to think broader, however. Have you considered the fact, that people understand fairness differently? Have you considered, that people perceive the amount of work done differently? Have you considered, that people usually view their work as more valuable than others view their work? Have you thought about how to calculate this? Have you considered that your company will not only need technical people, but will also need people from different fields? And how are you going to objectively compare their contributions? All these variables are impossible to calculate in the real world and hence you shouldn't be trying to.

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