Salary Formula: A way through the minefield

In search of perfect compensation plan, we implemented Salary Formula at EL Passion roughly half a year ago. We did our research, we read the books, we searched the web, we watched the talks. We thought we were ready. Instead, we found ourselves walking through a minefield.

In this talk we will share our experience with implementing Salary Formula in a 40+ employees software house. We will describe the challenges we faced, mistakes we made and lessons we learnt.

The talk given with Grzegorz Kemski of EL Passion.

Transcript

1. Karol Sarnacki CTO @karolsarnacki hello@elpassion.com elpassion.com Grzegorz Kemski COO @grzegorzkemski
2. Take the Money Issue off the Table
4. ?
5. S = L * (T +∑t) + E
6. Level Technology Tags EL Passion Experience ( ) * + +
7. Level Technology Tags EL Passion Experience ( ) * + + Level Base Salary Junior 1 Junior 2 Junior 3 Mid 1 Mid 2 Mid 3 Senior 1 Senior 2 Mentor
8. • Level-up: Every 6 months • Based on: Peer Reviews Level Technology Tags EL Passion Experience ( ) * + +
9. • Back-end: 110% • Front-end, Mobile, Design: 100% Level Technology Tags EL Passion Experience ( ) * + +
10. • Involvement • Ownership • Impact • English Pro Each: +5% Level Technology Tags EL Passion Experience ( ) * + +
11. (Years @ EL Passion) * Level Technology Tags EL Passion Experience ( ) * + +
12. Prototype
15. 30% No pay cuts 0% Only raises
16. Influencers
17. Dismissed: Formal Education Fame Years of Experience
18. FAQ Doc
19. • Create prototype • Keep it simple • Perform simulations • Invite influencers
22. Corrections
23. Recruitment
24. Version 1.1
25. Transparency
26. • Don't panic • Make corrections • Rethink recruitment • Discuss levels, not salaries
28. Myth 1 People will cheat
29. Myth 1
30. Myth 2 Dehumanizing effect
31. Myth 3 People will leave
32. Nobody left
34. Was it a good decision to implement the Salary Formula? Yes - 88% No - 6% Don't care - 6%
35. Thank you!