Salary Formula. Bumpy Road to Transparency.

The Salary FormulaBumpy Road to Transparency

Agata Landzwójczak Zef Hemel

4, PL 200 employees

Programmers & Testers (70%), Leaders, Business Support

IT

2005 40 interviews, 8 hires/ month (avg)

Challenge

Salary negotiations

08-2014

100

08-2014

100

Unfair salaries

08-2014

100

Unclear expectations

Salary negotiations

Fairness

Clarity

08-2014

100

Idea

09-2014

110

Management 3.0: salary formula

09-2014

110

How it works

Salary = base * (value 1 * param factor 1 + value 2 * param factor 2 + …)

09-2014

110

Already tried at Buffer

09-2014

110

Technical company technical solution

09-2014

110

Iteration #1

11-2014

120

ParametersExperience (in years)

Seniority (intern expert)

Versatility (none fullstack)

Advocate (none crazy)

Location (city)

+ Leader bonus (team size)

11-2014

120

70%employees covered

01-2015

140

Results

03-2015

150

Salary negotiations

Fairness

Clarity

But ...

03-2015

150

03-2015

150

salary formula

Transparency

Advocate

Idea: pay for what we value

Hard to measure objectively

Attitude

Salary increase not a motivator

03-2015

150

Seniority

03-2015

150

EXPERT

SENIOR

REGULAR

JUNIOR

INTERN

Market changes

Market salaries

In demand: high versatility

03-2015

150

Coverage

Process Support

Business Support

Management

03-2015

150

Scrum Master

Product Owner

Python Developers

JS Developer QA

Iteration #2

08-2015

170

Transparency

08-2015

170

Advocate

09-2015

180

Seniority

09-2015

180

Seniority

EXPERT

SENIOR

REGULAR

JUNIOR

SENIOR +

REGULAR +

JUNIOR +

EXPERT +

Coverage

09-2015

180

Process Support

Business Support

ManagementScrum Master

Product Owner

Python Developers

JS Developer QA

Market reality

09-2015

180

85%employees covered

01-2016

200

Conclusion

ConclusionSalary negotiations

Fairness

Clarity

02-2016

200

Thank you

Agata Landzwójczak Zef [email protected] [email protected]

@agatonial @zef

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