We know compensation is an extremely hard topic. There are many factors impacting that hardness such as emotions, budgets, market, peers, etc… We want leaders to focus on two aspects:
Both topics have many implementations. We believe many of them could work here.
Salary fairness vs. performance measurement
We strongly believe that fairness is the core principle that should guide us. If we would have fairness across the whole company there should be no topic of measurement/valuation.
What we usually try to measure is how much someone developed, or how much someone contributed to the project, team, initiative, etc… But we don’t do that without a reason. One of the real reasons for that is to somehow connect the salary rise with someone’s outcomes.
But why? Why do we try to connect outcomes with salary? We are worried about how accurately these two changes (outcomes change and compensation rise) correspond. We try to avoid cases when someone would get too small a rise, or too high…
Fairness is what drives us to do that…
People want fairness too, they don’t want to earn much more or much less than a person who they perceive does the same.
The role of leaders is to help a person to get that clear perspective for fairness sensing not to measure things perfectly. The perspective of what we actually try to do here at AppUnite, what is much and less in terms of contribution, what is just a semblance, and where the real impact happens.
Examples of how you could start evaluating the salary of team members