Salary Formula: A way through the minefield

•

1 like•1,021 views

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 ~50 employees software house. We will describe the challenges we faced, mistakes we made and lessons we learnt. A talk at Agile By Example 2016 Conference, prepared by Grzegorz Kemski and Karol Sarnacki (the talk is available here: https://www.youtube.com/watch?v=NzWe5uo18tI) You can check the latest iteration of EL Passion's Salary Formula here: https://www.notion.so/elpassion/Salary-Formula-Career-Path-1f91cbb3fdf048f597ea18563d4e7e16

Technology

Karol Sarnacki
CTO
@karolsarnacki
hello@elpassion.com
elpassion.com
Grzegorz Kemski
COO
@grzegorzkemski

Level Technology Tags
EL Passion
Experience( )* ++

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

● Level-up: Every 6 months
● Based on: Peer Reviews
Level Technology Tags
EL Passion
Experience( )* ++

● Back-end: 110%
● Front-end, Mobile, Design: 100%
Level Technology Tags
EL Passion
Experience( )* ++

● Involvement
● Ownership
● Impact
● English Pro
Each: +5%
Level Technology Tags
EL Passion
Experience( )* ++

(Years @ EL Passion) *
Level Technology Tags
EL Passion
Experience( )* ++

Dismissed:
Formal Education
Fame
Years of Experience

● Create prototype
● Keep it simple
● Perform simulations
● Invite influencers

● Don't panic
● Make corrections
● Rethink recruitment
● Discuss levels, not salaries

Was it a good decision
to implement the Salary Formula?
Yes - 88%No - 6%
Don't
care - 6%

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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

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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

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23. Recruitment

24. Version 1.1

25. Transparency

26. ● Don't panic ● Make corrections ● Rethink recruitment ● Discuss levels, not salaries

27.

28. Myth 1 People will cheat

29. Myth 1

30. Myth 2 Dehumanizing effect

31. Myth 3 People will leave

32. Nobody left

33.

34. Was it a good decision to implement the Salary Formula? Yes - 88%No - 6% Don't care - 6%

35. Thank you!

Salary Formula: A way through the minefield

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Salary Formula: A way through the minefield