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How We Replaced Salary Negotiations with a Sina...
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Konstantin Haase
June 24, 2016
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How We Replaced Salary Negotiations with a Sinatra App
Presented at RedDotRubyConf 2016 in Singapore.
Konstantin Haase
June 24, 2016
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Transcript
How we replaced Salary Negotiations With a Sinatra App Konstantin
Haase @konstantinhaase / @rkh_popcorn Travis CI travis-ci.com
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There will be code. I promise.
@jocranford
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What’s in a salary?
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$1,000,000 per episode $100,000 per episode 10x actor?
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“Why are the best programmers 10x more productive than mediocre
programmers, but paid only 3x as much?”
“How do bootstrapped companies hire talent?”
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‣ bootstrapped ‣ 38 employees ‣ top talent ‣ base
in Berlin, Germany Travis CI
‣ 8 countries, 16 nationalities ‣ 54% women (50% in
engineering) ‣ wide range of backgrounds ‣ we’ll keep hiring Travis CI
Salaries account for 46% of our spendings, making it the
biggest cost centre.
We don’t negotiate salaries.
A Sinatra application tells us what to pay someone.
Negotiation skills don’t reflect your value to the company.
Negotiation skills don’t reflect your financial needs.
Salary negotiations harm underrepresented groups.
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Source: Fortune Magazine
The Travis CI Salary Framework™
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Developing the “Framework” took a full year. Everyone could participate.
We pay by value. We pay by needs. We use
generalised rules that apply to everyone.
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Value
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How do you define a 10x developer (if they exist)?
Example: Software Engineer — Level 10
Shows an intuitive grasp of situations, analytic approach used only
in novel situations.
Is self-motivated to the point that they create new work
(for themselves and sometimes others) and has their own vision for what needs to be done.
Understands business requirements. Does not just understand but also shape
the big picture.
Engineering Career Path defined up to level 17 at the
moment.
Employees should level up about once a year.
If an employee doesn’t get a raise, that’s considered a
bug, not a feature.
Needs
We use a generalised “needs” model based on location.
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www.economist.com/content/big-mac-index
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numbeo.com
rkh.im/move (outdated, does not work properly for Singapore)
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glassdoor.com
payscale.com
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Only compare data points from the same source.
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Country base line based on how market rates* compare to
Berlin. City adjustments based on how the living costs compared to national average. Income tax estimation is added on top. * Factor adjusted upwards for low income countries, for city states Consumer Prices and Rent Index will be used if higher
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Rates calculated for 3563 cities in 209 countries Four countries
also have 92 regions.
youtube.com/user/CGPGrey
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Currencies are tricky.
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© Lincoln Stoll
What’s important: Competitive, Comfortable, Fair, Feasible, Prospective
Everyone can participate in the salary discussion.
Thank you! Konstantin Haase @konstantinhaase / @rkh_popcorn Travis CI travis-ci.com