3 ms·

I actually kind of like the system, but doesn't this involve publicizing other employees' salaries? A possible workaround is to just have classes of bonuses, li

by rm999 13y ago

I actually kind of like the system, but doesn't this involve publicizing other employees' salaries? A possible workaround is to just have classes of bonuses, like 5k a year for entry-level, 15k for senior-level, etc.

sukuriant 13y ago
Why is it so bad to know each other's salaries? I've never understood this at all. Salary transparency is, to me, a way to keep management from being corrupt and manipulating harder working employees from getting their fair share
- wikwocket 13y ago
  Salary transparency can be good for the employee, but it is worse for the company. If salaries are private, the company has a lot more freedom in how they get and keep their staff. You can offer big bucks for a key position without raising salaries across the board. You can offer targeted bonuses without making people jealous. Some say this is a corrupt conspiracy, but I think it's just how things are traditionally done, and I don't think it's much different from not making your price lists public knowledge, etc. It's just business. That said, it's in the employees' interest to arm themselves with the going rate for their job duties, and to aggressively push to get a fair rate. It's hard to say if one approach is "better," because every company is different, and you can't easily switch models. If you decide to go to public salaries, you may be pressured to "correct" a lot of people, some downward. If you decide to go private, everyone is going to be asking why.
tptacek 13y ago
A workable variant of this system is to assign bounties based on the value of different roles; instead of bonusing precisely 120k, you can assign a 100k bounty to the role; the bounty doesn't have to have any direct relationship with the salary. The core idea is to make the recruiting bonus recurring. Similarly, I'm not sure that the 100% over 10 years rule isn't arbitrary. Someone who stays with a company for ten years is incredibly valuable. Why not pay in year 11, and year 12?
- sehrope 13y ago
  Yes role based bonuses for referrals are common in the financial services sector. For example at one firm an AVP referral that was hired would be a $5K bonus whereas a VP referral would be a $10K. Unsurprisingly there is quite a push for for VP and above as a starting title for referrals. I've never heard of a firm that offers a recurring bonus though. AVP: Assistant Vice President VP: Vice President

by rm999 13y ago

sukuriant 13y ago

Why is it so bad to know each other's salaries? I've never understood this at all. Salary transparency is, to me, a way to keep management from being corrupt and manipulating harder working employees from getting their fair share

wikwocket 13y ago
Salary transparency can be good for the employee, but it is worse for the company. If salaries are private, the company has a lot more freedom in how they get and keep their staff. You can offer big bucks for a key position without raising salaries across the board. You can offer targeted bonuses without making people jealous. Some say this is a corrupt conspiracy, but I think it's just how things are traditionally done, and I don't think it's much different from not making your price lists public knowledge, etc. It's just business. That said, it's in the employees' interest to arm themselves with the going rate for their job duties, and to aggressively push to get a fair rate. It's hard to say if one approach is "better," because every company is different, and you can't easily switch models. If you decide to go to public salaries, you may be pressured to "correct" a lot of people, some downward. If you decide to go private, everyone is going to be asking why.

tptacek 13y ago

A workable variant of this system is to assign bounties based on the value of different roles; instead of bonusing precisely 120k, you can assign a 100k bounty to the role; the bounty doesn't have to have any direct relationship with the salary. The core idea is to make the recruiting bonus recurring. Similarly, I'm not sure that the 100% over 10 years rule isn't arbitrary. Someone who stays with a company for ten years is incredibly valuable. Why not pay in year 11, and year 12?

sehrope 13y ago
Yes role based bonuses for referrals are common in the financial services sector. For example at one firm an AVP referral that was hired would be a $5K bonus whereas a VP referral would be a $10K. Unsurprisingly there is quite a push for for VP and above as a starting title for referrals. I've never heard of a firm that offers a recurring bonus though. AVP: Assistant Vice President VP: Vice President