Pay scales can be really difficult when it comes to jobs in technology.
- Are candidates getting the market rate?
- Could they get more if they asked?
- Should they get a raise?
- Is she getting the same pay as him?
Big financial institutions in London and New York as well as the heavily backed startups in Silicon Valley will pay more than the rest, but should you be plotting your pay rates against them?
Basecamp have a great approach to salaries by ensuring that everyone in the same role is paid the same amount regardless of where they are based, how long they've been in the role, their ethnic background or their gender.... imagine that!
The rate of pay is easy to work out as well. They take an annual salary survey result of the industry and make sure that their pay is better than 95% of the salaries, or in other words their staff are in the top 5% of salaries for their roles.
Now that is a great idea!
There are no negotiated salaries or raises at Basecamp. Everyone in the same role at the same level is paid the same. Equal work, equal pay. Raises happen automatically, once per year, when we review market rates. Our target is to pay everyone at the company in the 95th percentile, or top 5%, of the market, regardless of their role. So whether you work in customer support or ops or programming or design, you’ll be paid in the top 5% for that position.