There's definitely a pretty wide range of practice when it comes to pay transparency. Depending on where you have employees or our hiring you may already be required to publish pay ranges in your job postings. A lot of job seekers expect to see pay ranges regardless of any legal requirements.
But internally, a good place to start on transparency is simply talking about your compensation philosophy and your overall approach to compensation with employees. Even explaining how a raise is determined can give employees more comfort and confidence in the process. From there you can explore more ways to provide internal transparency, from providing pay ranges to full transparency around pay for all employees. It really comes down to what's right for your company and culture. That being said, pay transparency is certainly a one-way door (once you provide it it's hard to pull back). There's nothing wrong with taking baby steps and thinking about providing transparency as an ongoing journey.
Original Message:
Sent: 04-25-2024 10:47
From: Steve Marovich
Subject: Compensation Surveys and other related matters
Similarly, how do you think we should be thinking about pay transparency? Employees tend to talk about their compensation and raises.
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Steve Marovich
Original Message:
Sent: 04-25-2024 10:41
From: Josh Steinfeld
Subject: Compensation Surveys and other related matters
Hi Patrick - I'm not sure there are any free sources of data that are going to give you the granularity that you're looking for. I will say that a 4% increase in the US is a reasonable starting point, but an actual increase that an employee receives will depend on their performance and position against market. So, if you have a high performer who is paid well below market, a 4% increase could be disappointing.
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Josh Steinfeld
Original Message:
Sent: 04-25-2024 10:36
From: Patrick Collins
Subject: Compensation Surveys and other related matters
Hi Josh,
We are a 3 year old ClimaTech company based out of California. We are a startup with a total employee strength of 60. We have our backend tech centre based in Bangalore, India where we have a shade over 50% of our employees residing. The rest are base in LATAM, USA and East Africa.
Last July for the first time I introduced a formal performance review on the basis of which annual salary increments and performance incentive would be based. This is a very comprehensive policy based on my past experience of having worked in large companies that were based in India and Europe. I am presently based in the Bangalore office. In the past organisations I have purchased compensation survey data from either Mercer or Hay to determine comp increases as the employee strength was quite large. These surveys are quite expensive.
Last year I looked at some freely available data in USA and used an average increase at 4% for the employees. We had about 5 employees in the USA then which has now increased to 10. The 4% was functional agnostic. In the US we have roles of Business Development, Finance (CFO), Data Scientists, Data Engineers, Marketing and a Director R&D. With the 4% as a met expectations increase in gross, a couple of our employees were unhappy. It is pertinent to state that we do have job descriptions for each of the positions, but we haven't done a job sizing / job evaluation exercise. Hence it becomes difficult make market comparisons.
Please let me know as to which freely available surveys will give me accurate information on a compensation survey for 2024? Any other information based on my email above will certainly help.
If there is any other useful information that you could share on ESOP, I will appreciate that.
Thank you for your support in advance.
Best,
Patrick Collins
patrick@boomitra.com
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Patrick Collins
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