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Initially when I saw this open salary approach and especially the calculator I was intrigued. But you cannot make salaries into a formula and get 100% good resu
by beberlei 9y ago
Initially when I saw this open salary approach and especially the calculator I was intrigued. But you cannot make salaries into a formula and get 100% good results.
The approach Basecamp (37signals) has with picking a location, then paying people based on 95% percentile (top 5%) market rate regardless of where they live is just much easier to explain to employees than some arbitrary multiplier thing that just leads to endless discussions.
https://m.signalvnoise.com/how-we-pay-people-at-basecamp-f1d04f4f194b https://m.signalvnoise.com/how-we-pay-people-at-basecamp-f1d...
- pc86 9y agoI think a multiplier is fine as long as it's for where the person actually lives, and is based on the actual overall COL as opposed to "well this isn't SF or NYC we we're automatically chopping 15-25% off your salary lolol"
- beberlei 9y agoi find cross country comparisons that lead to multipliers very hard and often arbitrary, because of differences in taxes, social security, health insurance and of course the exchange rate.