The approach seems fanciful - especially if applied to organisations with more diverse roles - for example would they really pay a janitor the same as a top level developer? The cynic in me feels the fact they don't have a broad spectrum of roles (20 total employees); the organisation is engineered to not be disparate in terms of expertise. More cynicism: most "lowly" roles would be outsourced to service companies and conveniently sidestepped.