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Open Salaries: Outcomes

blog.lunarlogic.io

81–90 of 225 posts

Re: Open Salaries: Outcomes

#81
post #75

Hmm. My experience tells me that a lot of this depends on the details of the team, and that there isn't a right-for-everyone policy. My story: I worked for a company that paid a bit below market salaries, for the SF Bay Area. I was on a team with two more junior engineers. At one point one disclosed to me that they felt underpaid. That led to a salary discussion where I explained that the company habitually underpaid…

>This changed the team dynamics in a fundamental, toxic way. It engendered bitterness from them not only toward the company but to me as well, which ultimately led to all of us leaving the company for greener pastures but with lots of bad feelings all around.

The dynamics weren't changed, you were all just able to finally see the reality of your situation: you were being taken advantage of and no one told you.

Re: Open Salaries: Outcomes

#82
post #75

Hmm. My experience tells me that a lot of this depends on the details of the team, and that there isn't a right-for-everyone policy. My story: I worked for a company that paid a bit below market salaries, for the SF Bay Area. I was on a team with two more junior engineers. At one point one disclosed to me that they felt underpaid. That led to a salary discussion where I explained that the company habitually underpaid…

> You could say the takeaway is don't work for companies out to screw their workers, but that's most of them. Seems like this is something transparent salary policies might change.

Exactly--open salaries might cause some companies to crash and burn, but these are companies that /should/ crash and burn.

Re: Open Salaries: Outcomes

#83
post #32

If you're any good at your job, you should avoid these open companies like the plague. Don't piss away your leverage..

This got downvoted, and the tone is a bit harsh.. but it does speak a bit of truth. What happens to the guy in open salary co who is legit 50% better than everyone else? Do his peers vote to give him 50% more money? Or does it settle on sort of a union style pay scale, where everyone with the same # of years of work makes the same money (which is great for the worst performances, and terrible for the best performers)

Why should the guy that is the best negotiator get the highest salary? Does that actually have any correlation to performance?

Re: Open Salaries: Outcomes

#84
post #11

Earlier quoted context omitted.

Usually the pay for a job is within a range. This range can be quite large so you will have people with the same job making different money.

Let's take the BMW example. Most of their engineers in Germany are paid according to a collective agreement where the salary is determined by looking at a table based on your actual position, your background, and seniority. There is an additional salary based on some specified performance metrics but that usually accounts for a difference of 5% maximum. Only few engineers in leading position and with larger responsib…

I have worked at German companies with union pay (IG Metall, same as BMW). You are right that there is a table, but where you are on the table is still very negotiable. Maybe people think this can't be negotiated but in reality it is. I got bumped up several levels after I complained that my colleagues were much higher while doing the same work.

Re: Open Salaries: Outcomes

#85
post #29

I'd like to get the perspective and opinion of an employee in the open salary system, rather than just a recount from the top.

I work for a consultant company with transparent salaries. Everyone know what everyone's making on each level. I for one have leveled twice now in a year and my salary have been raised 32%. It feels very natural, and actually it would have it feels weird not knowing the other ppls salaries.

Re: Open Salaries: Outcomes

#86
post #75

Hmm. My experience tells me that a lot of this depends on the details of the team, and that there isn't a right-for-everyone policy. My story: I worked for a company that paid a bit below market salaries, for the SF Bay Area. I was on a team with two more junior engineers. At one point one disclosed to me that they felt underpaid. That led to a salary discussion where I explained that the company habitually underpaid…

no two employees with the exact same job title should have more than 10% difference in pay. If someone is making 40% more than others with same title then they should be promoted to higher title and if they dont deserve that title then why is the company paying them so much. It is one thing to want to minimize salary costs but another to disrespect employees with absurdly low salary.

Re: Open Salaries: Outcomes

#87

If these 25 employees would be clever then you'd get 25 massive pay rises in a very short amount of time by everyone quickly realizing that if you all praise yourself endlessly in those discussions then it is difficult for 1 single boss to push back on 25 people's amazingly positive feedback. Not trying to plant an idea though. Just saying.

Unless you care for the company and you are a decent person that doesn't only care about money. We care about the organization, we care about our financials and we are just nice people. Money is less valuable to us than a nice environment and autonomy. We don't want to destroy this.

Re: Open Salaries: Outcomes

#88
post #86
post #75

Hmm. My experience tells me that a lot of this depends on the details of the team, and that there isn't a right-for-everyone policy. My story: I worked for a company that paid a bit below market salaries, for the SF Bay Area. I was on a team with two more junior engineers. At one point one disclosed to me that they felt underpaid. That led to a salary discussion where I explained that the company habitually underpaid…

no two employees with the exact same job title should have more than 10% difference in pay. If someone is making 40% more than others with same title then they should be promoted to higher title and if they dont deserve that title then why is the company paying them so much. It is one thing to want to minimize salary costs but another to disrespect employees with absurdly low salary.

What if they do different jobs? Is the title so important?

Re: Open Salaries: Outcomes

#89
post #86
post #75

Hmm. My experience tells me that a lot of this depends on the details of the team, and that there isn't a right-for-everyone policy. My story: I worked for a company that paid a bit below market salaries, for the SF Bay Area. I was on a team with two more junior engineers. At one point one disclosed to me that they felt underpaid. That led to a salary discussion where I explained that the company habitually underpaid…

no two employees with the exact same job title should have more than 10% difference in pay. If someone is making 40% more than others with same title then they should be promoted to higher title and if they dont deserve that title then why is the company paying them so much. It is one thing to want to minimize salary costs but another to disrespect employees with absurdly low salary.

Doesn't the Peter Principle come into play here? What if we do the same job but I do it twice as fast? That doesn't mean I'd be a good fit for the next level up, it might just mean I'm really good at doing this specific job very quickly.

Re: Open Salaries: Outcomes

#90

Earlier quoted context omitted.

This sums up most government jobs. Also, the job security is an added bonus. When was the last time you heard of the government having a mass layoff?

2013? https://en.wikipedia.org/wiki/United_States_federal_governme...

How many people were actually fired or laid off from this? There was a bit of a kerfuffle with temporary unpaid leave and some people working without pay for a bit(they got back pay latter) but nobody lost their job.
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