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"as little as they can afford" is still completely subjective, as they will pay more for an employee that is better valued on the market for any specific reason
by makeitdouble 4y ago
"as little as they can afford" is still completely subjective, as they will pay more for an employee that is better valued on the market for any specific reason, regardless of the actual results once they join Gitlab.
If tomorrow they declared they "need" to pay their employees 2x more to hire "A players" and get an edge on their competitors, we probably would have to take their word for it.
- baby 4y agoI'm not sure I understand. The way it works is that you look at the market where you're hiring someone, and seeing how people pay in that market (using different apps you can pay for). Then you decide which percentile you want to be part of (average payer, top payer, etc.) Of course I imagine that you can make up a number and say "I'll pay my employees X because I have money right now and this is what they deserve" but it doesn't sound like a good financial decision for a business.
- makeitdouble 4y agoYou set a range when looking for someone, but you’ll hit people that request more and can anchor their numbers onto something tangible (e.g. their previous pay). You’ll be paying that + alpha if you want them. You can also set a range (let’s say “top payer”), and find no one that matches your criteria in that range. You’ll either choose to settle for lower requirements, or increase the pay to get people who match your requirements. The above all sound logic, but in the end it’s a made up number for subjective requirements, so you might completely be paying any arbitrary number to satisfy your criteria.