Code 2025
Paying Engineers like Salespeople – Arman Hezarkhani, Tenex
Overview
This talk proposes a shift in how engineers are compensated, moving away from traditional hourly or salary models towards a system that directly incentivizes productivity and the adoption of AI tools. The core idea is to pay engineers based on completed work units, similar to how salespeople are compensated based on sales, to encourage faster and more efficient delivery of high-quality code. This approach aims to unlock greater potential by aligning compensation with the increased capabilities offered by AI.
Who should watch
- AI engineers and builders exploring new compensation models.
- Product Managers and leaders seeking to boost team productivity.
- Companies struggling with engineer motivation and output.
- Anyone interested in the evolving landscape of developer compensation in the age of AI.
Key takeaways
- Traditional compensation models (hourly, salary with bonus, equity) may not adequately incentivize innovation and speed in the AI era.
- A story point system, where engineers are paid per completed and accepted unit of work, can drive higher output and faster delivery.
- This model has enabled the speaker's company to hire top talent, including experienced engineers and researchers, and ship code rapidly with high quality.
- AI acts as a multiplier for existing attributes; it enhances great engineers and exposes flaws in others, making hiring the right people crucial.
- Risks like inflating story points, quality degradation, and overly competitive behavior need to be managed through clear scoping, QA processes, and client approvals.
- Strategists, compensated based on customer satisfaction, and rigorous internal QA provide counterbalances to the engineer-centric output-based pay.
- The speaker's company uses a hybrid model with a flat base salary plus quarterly bonuses tied to completed story points.
- AI can be applied to various business problems, such as automating image moderation for a billboard company, achieving 96% accuracy, or developing multiple on-device AI models for retailers.
Notable quotes
*AI makes people look like one of those crazy mirrors where any one of your attributes, it makes it 10 times larger.*
*AI gives people superpowers and it makes all of us smarter, faster, and better what we do.*
Unofficial community note. Prefer the recording for nuance.