No salary negotiations? Not so fast…
This article, well worth a read, mentions how startups like Buffer and SumAll avoid salary negotiations entirely by having a culture of open salaries:
“The negotiating process is very alien to us at Buffer—because there is no negotiating,” CEO Joel Gascoigne previously told Quartz. “We have a really high focus on cultural fit to the point that if they didn’t know about the formula before they applied, they probably wouldn’t be a good fit.”
There is something slightly misleading in this. In a transparent culture, it’s true that there are no traditional salary negotiations, by which I mean the closed-doors, one-on-one, “I deserve to earn more and I’ve got better offers, so give me a raise” types of conversations, because it is simply impossible to act on them – secret pay packets are just not possible. If someone gets a pay raise, there needs to be a viable justification for that.
However, our experience is that there are, and in fact must be salary negotiations, but they happen in a group, in the open.
Much like with hierarchy, however, it is misleading to say that the “new model” of building companies has no salary negotiations – they just adopt a radically different, much more open and transparent and fair format. If they never happen at all, though, you’ll have a lot of problems with staff retention.
February 22, 2018
In 2013, the venture capitalist Aileen Lee coined the term ‘unicorn’ for a startup company valued at over $1 billion. The name was meant to reflect the extreme rarity of…
February 22, 2018
In recent years, Facebook has become synonymous with the concept of ‘Fake News’. From Macedonian teenagers influencing the American election to former executives speaking out against its effect on society,…
February 20, 2018
“Robots will steal our jobs” has become a common prediction. Whether people are angry or resigned to their fate, we seem to take it for granted that automation will create…
February 14, 2018
We treat automation in any industry with a healthy degree of suspicion. After all, many of our jobs are at risk in the not too distant future. A recent study…