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

Tim Dellinger's analysis challenging the assumption that employee performance follows a normal distribution, arguing for a Pareto model instead

Tim Dellinger challenges the widespread assumption that employee performance follows a Gaussian (normal) distribution, arguing instead for a Pareto distribution where 'a few are quite successful, most are less successful.' He presents evidence against the Gaussian model including the lack of symmetry in real-world performance, corporate salaries representing only the top half of performance curves, and the absence of equal numbers of high and low performers. The Pareto model better aligns with the Marginal Productivity Theory of Wages and suggests low performers are 3x more common than high performers. Engineering leaders will learn why performance management processes built on Gaussian assumptions are on 'shaky ground' and why there's no statistical justification for automatically firing bottom performers.

Source: timdellinger.substack.com
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