You’ll have already seen our salaries and our wage system, however one other a part of our course of is to yearly evaluation the benchmarks that we use within the system. To do that, we have a look at the info supply for our salaries and make it possible for all of our crew’s salaries are maintaining with present market charges. We’ve been doing this since 2018, and we by no means lower salaries throughout a rebenchmarking. Within the final two years, we’ve additionally ensured that rebenchmarking all the time ends in a rise relatively than no adjustment.
Right here’s an inside look from our most up-to-date rebenchmarking in April 2022, adopted by a deeper dive into how we method wage rebenchmarking typically.
The Numbers Behind Buffer’s 2022 Wage Rebenchmarking
This 12 months, we adjusted with a minimal improve of three p.c and a most improve of 6 p.c to align with market developments and assist with rising prices as a result of international inflation.
This resulted in a further improve of $42,000 monthly or $504,000 per 12 months to our general working bills.
With a minimal improve of three p.c and a most improve of 6 p.c, salaries have been adjusted in complete between $2,078 and $13,500 per individual throughout the crew.
How Wage Rebenchmarking Works at Buffer
Yearly at Buffer, we do a wage rebenchmarking, the place we have a look at all of our salaries at Buffer and regulate them upwards to maintain up with the present market. This isn’t a benefit improve or any indicator of a person’s worth or contribution to Buffer. These adjustments are strictly to maintain up with the job market. There are not any adjustments to every other profit or grant because of rebenchmarking, and we by no means enable rebenchmarking to end in decreased pay.
To go about this, we evaluate all of our salaries to the market utilizing our trusted compensation information supply, Radford. Radford benchmarks hundreds of tech jobs world wide and provides in depth coaching for our crew to make it possible for the way in which we match roles aligns with the way in which different firms are matching roles out there.
In our wage system, we benchmark all roles to the San Francisco labor market based mostly on tech survey information for the software program business. For all positions (excluding the chief crew), we use the info from firms of all sizes. For the chief crew, we do add headcount filters to make certain we aren’t evaluating to salaries of executives at a lot bigger firms.
From 12 months to 12 months, it’s not unusual to see some variation in benchmarked numbers, both up or down. In the end, benchmarks are a reference level, and we apply them in a manner that is sensible inside Buffer. We’ve got the power to determine once we wish to be influenced by the market and once we wish to disrupt the market. For an space like buyer advocacy, for instance, we proceed to guide the market in pay as a result of supporting clients is on the core of what we do, and we imagine our pay ought to mirror that.
To easy out the volatility of the info over time and to remain true to our general technique, the 6 p.c cap through the re-benchmarking season ensures that future merit-based promotions and pay adjustments end in wage will increase. It is a determination that we’ve made given the components we see at play proper now, however it’s one thing we are going to consider as a part of this course of every year.
We reassess each teammate’s wage at Buffer through the rebenchmarking, however there are just a few circumstances the place some teammates received’t have their wage adjusted both as a result of they just lately moved to a brand new job code that already accounts for inflation or as a result of a larger change round their position is at the moment within the works.
Over to you
Do you’ve questions on how we do that at Buffer or wish to share how your organization approaches compensation? Send us a tweet!