Shopify is “flattening” its organizational structure by introducing managerial changes expected to result in fewer middle managers.
The firm has announced a plan to divide staff into two categories based on whether they are managers or individual contributors.
From mid-March, each employee can become a full-time manager or a “crafter,” as Shopify refers to individual contributors.
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Managers devote their time to resource planning and strategy, while crafters focus on product development.
The company said the idea behind the shift is that historically, businesses have rewarded those who take on greater managerial duties with better compensation and more career advancement prospects.
It aims to reward employees who keep growing without becoming managers because not everyone wants to manage others.
Becoming a manager would have no impact on salary in the future.
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Chief Human Resources Officer Tia Silas said: “Most employees want their primary job to be building, which is why they came to Shopify in the first place.
“That’s also why we introduced scope and mastery, so crafters can spend a majority of their time building, and they can continue to rise up the mastery levels and make more money.”
Silas added that Shopify expects fewer managers overall, referring to the move as a “flattening” of the company.
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“With our new system, we’re clearing obstacles for crafters to enable them to focus on what they do best: building world-class products,” she said.
Shopify isn’t the only tech company rethinking managerial work.
Meta has reportedly asked several middle managers to take on new positions as individual contributors as the business seeks to enhance efficiency amid layoffs.
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