Joel wrote excellent articles on developer compensation system used at Fog Creek Software. As a team lead and business owner, I would like to design a system that would work best for my team and my business, a system that is perceived as just and fair and transparent, a system that is easy to understand and implement but difficult to game.
And here's the catch: I have no experience in managing a team before, and I don't know what works and what doesn't.
How to motivate a team of software developers to bring out their full potential? Or more specifically, what do you think about the "ladder" Joel talks about in the aforementioned articles?