Salary formula: A bumpy way to transparency
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The Salary FormulaBumpy Road to Transparency
Agata Landzwójczak Zef Hemel
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4, PL 200 employees
Programmers & Testers (70%), Leaders, Business Support
IT
2005 40 interviews, 8 hires/ month (avg)
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Challenge
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Salary negotiations
08-2014
100
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100
Unfair salaries
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100
Unclear expectations
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Salary negotiations
Fairness
Clarity
08-2014
100
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Idea
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Management 3.0: salary formula
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How it works
Salary = base * (value 1 * param factor 1 + value 2 * param factor 2 + …)
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Already tried at Buffer
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110
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Technical company technical solution
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Iteration #1
11-2014
120
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ParametersExperience (in years)
Seniority (intern expert)
Versatility (none fullstack)
Advocate (none crazy)
Location (city)
+ Leader bonus (team size)
11-2014
120
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70%employees covered
01-2015
140
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Results
03-2015
150
Salary negotiations
Fairness
Clarity
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But ...
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03-2015
150
salary formula
Transparency
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Advocate
Idea: pay for what we value
Hard to measure objectively
Attitude
Salary increase not a motivator
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150
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Seniority
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EXPERT
SENIOR
REGULAR
JUNIOR
INTERN
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Market changes
Market salaries
In demand: high versatility
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Coverage
Process Support
Business Support
Management
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150
Scrum Master
Product Owner
Python Developers
JS Developer QA
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Iteration #2
08-2015
170
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Transparency
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Advocate
09-2015
180
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Seniority
09-2015
180
Seniority
EXPERT
SENIOR
REGULAR
JUNIOR
SENIOR +
REGULAR +
JUNIOR +
EXPERT +
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Coverage
09-2015
180
Process Support
Business Support
ManagementScrum Master
Product Owner
Python Developers
JS Developer QA
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Market reality
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85%employees covered
01-2016
200
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Conclusion
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ConclusionSalary negotiations
Fairness
Clarity
02-2016
200