How to set compensation using commonsense principles
Compensation has always been one of the most confusing parts of management to me. Getting it right is obviously extremely important. Compensation is what drives our entire economy, and you could look at the market for labor as one gigantic resource-allocating machine in the same way as people look at the stock market as a gigantic resource-allocating machine for investments. Read more…Never attribute to stupidity that which is adequately explained by opportunity cost
Hanlon's razor is a classic aphorism I'm sure you have heard before: Never attribute to malice that which can be adequately explained by stupidity. I've found that neither malice nor stupidity is the most common reason when you don't understand why something is in a certain way. Read more…How to hire smarter than the market: a toy model
Let's consider a toy model where you're hiring for two things and that those are equally valuable. It's not very important what those are, so let's just call them “thing A” and “thing B” for now. Read more…What can startups learn from Koch Industries?
I recently finished the excellent book Kochland. This isn't my first interest in Koch—I read The Science of Success by Charles Koch himself a couple of years ago. Charles Koch inherited a tiny company in 1967 and turned it into one of the world's largest ones. Read more…We're hiring at Better
Just a quick note that my team is always hiring at Better. A lot of new people have been joining the team here in NYC lately—the tech team has actually grown from 35 to 60 in just ~3 months. Read more…Buffet lines are terrible, but let's try to improve them using computer simulations
My company has a buffet every Friday, and the lines grow to epic proportions when the food arrives. I've suspected for years that the “classic” buffet line system is a deeply flawed and inefficient method, and every time I'm stuck in the line has made me more convinced. Read more…
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