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Monday, October 5, 2026

Why Google Quietly Uses the Power-Law Rule to Pay Its Superstar Employees Unfairly - Inc.

Imagine you have 100 employees and I ask you to graph them in terms of performance. Most likely your chart will look like a bell curve: A small percentage of high performers on the left, a few poor performers on the right, and a ton of average performers in the middle.

Yet as Laszlo Bock, the former Senior VP of People Operations at Google, writes in Work Rules: Insights from Inside Google That Will Transform How You Live and Lead:

Organizational researchers have shown, similar to the 80/20 rule, the majority of your company's output comes from a minority of "superstar" performers: What's known as a power-law distribution.

In performance terms, think of power-law distribution as a long tail of steadily lower performance. In visual terms, like this.

Yet the standard bell curve underpins most HR systems. According to Bock, that means many leaders "undervalue and under-rewarded their best people, without even knowing they are doing it.'

For example, I once rated all my employees as "superior," and for good reason: They were the most productive team in the plant. HR kicked my evaluations back and said I needed to distribute my evaluations more "fairly."

"Fairly," of course, meaning "bell curve."

That caused a few outstanding employees to be undervalued, and as a result under-rewarded. Since pay was tied to evaluation ratings, they didn't get the raises they deserved.

Or the attention.

Put Your Best People Under a Microscope

Instead of focusing on what makes poor performers...



Read Full Story: https://www.inc.com/jeff-haden/why-google-quietly-uses-power-law-rule-to-pay-...