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In my experience hiring, we know the benchmark numbers for the roles. Because we have current employees in those roles and we want to understand whether we're p
by t0mas88 3y ago
In my experience hiring, we know the benchmark numbers for the roles. Because we have current employees in those roles and we want to understand whether we're paying them fairly. Not out of some kind of deep kindness, but because otherwise they'll at some point get a better offer and leave.
But it differs across the company where we aim to be. For some roles we aim for 50th percentile, while for other areas we deliberately pay 90th percentile and adjust current employee salaries yearly (after performance review) to match that. Because those areas are important to our strategy/roadmap.
May sound unfair to those that aren't in those areas. But this is business, we're spending our money where the returns are highest for this company. If a role isn't a 90th percentile role for us, it might be somewhere else, and we are willing to accept higher turnover on the 50th percentile roles to make money available to get the people we really need on those other roles.
- HellDunkel 3y agoI am curious. Given you have identified an underpaid employee and want to make sure to keep her/him. Do you actively approach the employee and set the salary straight or do you just watch closely and say yes to the next pay raise?
- t0mas88 3y agoWe do yearly increases based on performance review, we offer a higher increase if their salary is below benchmark number
- HellDunkel 3y agoOk- a yearly increase based on performance sounds a LOT more attractive than the usual bonus nonsense.
- TimPC 3y agoIn my experience, every company sees what they want to see when it comes to benchmarks. I've seen companies that think FAANG compensation doesn't exist in the marketplace at all and I've seen other companies that target above that level for roles.