Rewarding people proportionally is a macro-level unsolved problem. Kropotkin wrote it about it and his solution was to throw his hands in the air and say fuck it, labor value is impossible to accurately evaluate, and thus he invented anarchist communism.

Just look at all the weird quirks our world does to labor value: the same exact job in two different locations for a global employer (say, Google), selling to a global market, pays differently depending on "local labor market prices." In 2025 for engineering what on earth is a "local labor market?" An optimization coming from an engineer in Taiwan saves you the same money as if it comes from an engineer in SF but the SF engineer gets 8x the reward for doing the work. Luxury goods and electronics cost the same in both places. Buying property is only slightly cheaper in Taipei vs sf (yes really), vehicles cost more in Taiwan. Food and healthcare is cheaper in Taiwan, and that alone I guess means the Taiwanese engineer is worth 1/8th the SF engineer, to make sure the sf engineer can afford 16$ burritos?

Many other quirks. You point out another one: labor often isn't rewarded based on real value to a company, for many reasons but one of which is that managers often don't understand the job of the people they're managing and so apply management relevant KPIs to disciplines where those KPIs don't make any sense. Engineering, for example, doesn't correlate actual value add to the company via meetings attended or customers met, but that won't stop management from applying those KPIs and thinking it does!

I'm torn between thinking we keep things this way out of ignorance vs we keep it this way maliciously so the management class (which sets the rates) doesn't get written out of labor agreements altogether because they're often useless vs if we didn't keep up this charade, capitalism would just collapse entirely.