When we read about one start-up posting their employees’ salaries online, we did a double take.
According to Quartz, the social media startup Buffer posted salaries of everyone. And we do mean everyone, including its CEO! Per a blog post last week, CEO Joel Gascoigne wrote, “We hope this might help other companies think about how to decide salaries, and will open us up to feedback from the community.”
This begs the question: If you worked there, what would your reaction be to having your salary posted online? We’ve heard about other companies in HR-land discuss posting salaries for internal eyes only but again, we wonder what the benefit is?
Per the piece, no one really earns less than $70,000 even in the beginning when employees are technically at the freelance stage. One reason for the published salaries could be chalked up to their strategy of being transparent. This includes employees having access to revenue, monthly user numbers and having access to email exchanges from and to other employees.
This is the part where it starts to get really good though. They explain how the management team values an employee’s worth. There’s even an equation! Apparently salary equals the job type multiplied by the seniority multiplied by experience plus location.
The CEO pointed out to 99U the transparent formula, coupled with paying above market rates, should hopefully promote loyalty and commitment among its employees. “In Silicon Valley, there’s a culture of people jumping from one place to the next. That’s why we focus on culture. Doing it this way means we can grow just as fast—if not faster—than doing it the ‘normal’ cutthroat way.”