How We Replaced Salary Negotiations with a Sinatra App

Transcript

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   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.

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   @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?”
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    “How do bootstrapped companies hire talent?”

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    ‣ bootstrapped ‣ 38 employees ‣ top talent ‣ base

    in Berlin, Germany Travis CI
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    ‣ 8 countries, 16 nationalities ‣ 54% women (50% in

    engineering) ‣ wide range of backgrounds ‣ we’ll keep hiring Travis CI
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    Salaries account for 46% of our spendings, making it the

    biggest cost centre.
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    We don’t negotiate salaries.

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    A Sinatra application tells us what to pay someone.

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    Negotiation skills don’t reflect your value to the company.

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    Negotiation skills don’t reflect your financial needs.

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    Salary negotiations harm underrepresented groups.

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    Source: Fortune Magazine

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    The Travis CI Salary Framework™

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    Developing the “Framework” took a full year. Everyone could participate.

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    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)?

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    Example: Software Engineer — Level 10

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    Shows an intuitive grasp of situations, analytic approach used only

    in novel situations.
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    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.
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    Understands business requirements. Does not just understand but also shape

    the big picture.
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    Engineering Career Path defined up to level 17 at the

    moment.
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    Employees should level up about once a year.

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    If an employee doesn’t get a raise, that’s considered a

    bug, not a feature.
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    Needs

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    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

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    rkh.im/move (outdated, does not work properly for Singapore)

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    glassdoor.com

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    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.
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    youtube.com/user/CGPGrey

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    Currencies are tricky.

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    © Lincoln Stoll

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    What’s important: Competitive, Comfortable, Fair, Feasible, Prospective

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    Everyone can participate in the salary discussion.

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    Thank you! Konstantin Haase @konstantinhaase / @rkh_popcorn Travis CI travis-ci.com