No More Negotiation: Here All Salaries Are Public

By: Together Abroad 19-04-2017

Categories:* Daily employment news,
Salary negotiations remain an issue when you start a new job. After all, what income can you really ask for the job position?

These five Dutch companies do it differently: “All salaries and bonuses are public”.Transparency is the new buzzword. The idea is, an employee who knows where he or she stands, is a happy employee. It works in one of these ways:

1.Basic salary for everyone to be increased by well enough sales:

Law firms are often known for their hierarchical, hard structure. Law firm Bruggink& Van der Velden do it differently, says labour lawyer DaniëlMaats. The lawyers are actually all entrepreneurs within the company. We work with a flat organizational structure in which each employee (including the secretary) has an equal voice.

The salaries are public. In principal, every lawyer earns the same base salary. Then if you are good enough in making sales at a self-determined rate, you will receive a percentage on top of the base salary.

2. Salary and bonus on the wall:

Also, the consultancy company Prowareness works with fixed salaries for certain functions, and with public competencies that must be met in order to take the next step.

“We have in our office a literal wall of transparency –a physical wall on which various sensitive information is placed with the salaries and bonuses of all employees”, says Andrea van der Mooren of Prowareness. “We want to make sure that one’s salary can never be a point of discussion”.

During the application procedure, applicants are asked to classify themselves in such a growth path based on their competencies, without knowing which salary corresponds to them. A salary that is lowerthan expected, is more manageable when the candidate knows what it is based on, and with its relativeness to that of the other employees, according to the people at Prowareness.

3. Salary determined using a formula:

In tech company Money Bird, the consistency of the salary is taken even a step further. They want to talk about salaries as little as possible. Therefore, they have, in consultation with the workers, a formula developed by which thepaycheck is determined.

The formula consists of four pillars: a basic salary supplemented with bonuses for years of service in the company, the achievement of certain revenue targets and overall experience.

“At our company, many software engineers also work. These are not the most extroverted people. It is therefore important to us they are satisfied with their salary and with an overall feeling of fairness”, according to JoriekeLevink, the organization specialist at Money Bird.

By the developer platform Gitlab, the mathematical formula is also publicly open outside of the company, which isconvenient to have for a job interview.

4. Employees determine each salary:

CoertPrince of IT business Incentrodoes not support the idea that there should be no discussion possible over the salary. In Incentro there is a lot of discussion about salaries, but not from above: employees determine each paycheck.And the salaries are publicly issued in excel sheets that are visible for everyone.

Incentro is composed of several self-managing teams, Prince explained. Each team has available a certain amount of salary (even that amount is determined in consultation) and may determine how this amount is distributed.

Prince sees that people in that process often choose the interests of the team above self-interest. Because in order to function properly at work, they have to work with the team.“Money is anyway not the most important thing for people”, says Prince. “It is a reward. People need to feel that they are rewarded for what they do. And that goes beyond just money”.

5. Each team decides collectively on salary:

Also at consultancy Finext they work with self-directed teams. Each team is like a small business itself. Built around a particular specialization, each team has a private seller, a private analyst, etc. They are also responsible for all the costs they create and what they bring.

On this basis are also determined the salaries within the team itself. It is a team decision, where neither the director nor the HR manager are involved.


Source: https://www.rtlnieuws.nl