Creating an Environment That Rewards A-Players & Pushes Out Low Performers
In 2025 TryHackMe gave >$268k in bonuses. In 2026 it’ll be $536k.
In 2025 TryHackMe gave >$268k in bonuses. In 2026 it’ll be $536k. Done through PUBLIC quarterly performance reviews - creating an environment that rewards A-players & pushes out low performers.
We’ve introduced quarterly performance reviews (rolled out to product and engineering first), that stack ranks the entire team from top to bottom. The formula for stack ranking is done through a number of factors:
(1) business impact, (2) peer reviews with a personalised scoring system, (3) squad KPIs, (4) % accelerator/decelerator controlled by department heads.
This formula has gone through two tests per department to ensure we have it right. One learning from the tests we ran was that we need to give feedback to people who give peer feedback (as they’re way too generous), and its sometimes tricky to set squad KPIs (not all squads have easy to attribute KPIs, or are mission-driven not metric-driven).
Top performers bonuses are calculated by: (% of salary base) + (% based on company quarterly performance) + (% extra if team goal is hit). Example calculation:
Higher performers can earn 4-10% of their salary per quarter.
If they earn £65k, and are in the top every quarter they’ll get
If all other metrics hit: £26k extra a year
If for only 2 quarters all other metrics are hit: £18k extra a year
I only want A-players at TryHackMe, and A-players only want to work with other A-players. After 3-6 months of discussion and iteration on the formula and process, we’ve now rolled out quarterly performance reviews. This is inspired by Revolut’s performance based culture, and Frank Slootman’s “Amp it up” methodology. Highly recommend Frank’s book, and Revolut’s performance deck.
I want an environment that REWARDS top performers, and pushes out low performers - who are also the most vocal (cough cough Glassdoor). I believe this structure does this, and that performance-based quarterly bonus structure will reward (and hopefully retain) our A-players.
The top half of the teams quarterly performance are published to the entire team, so everyone recognises the best for that quarter.
I love it because it also allows us to give really constructive feedback. Much of the time feedback given to staff in 1:1s is unstructured. However now we can break down a staffs score, and give them actionable feedback every quarter.
If a member of staff is in the bottom 2 each quarter, its a signal to look at whether the staff is a good fit for the company. It helps constantly raise the bar of the entire team; something our team deserves.. to work with the best people.
It works because if you’re a high performer and work really hard, you benefit from it a lot. If you’re in the middle, you have strong reason to work really hard and climb to the top.
Its worth noting that: (1) not all teams get quarterly bonuses (some are annual). (2) Sales & Customer Success are also compensated differently.
Any recommendation on books to read for management? I'm a mid level engineer but want to guide my team when I can and prepare for the future! :)