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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
