You’ll have already seen our salaries and our wage components, however one other a part of our course of is to yearly evaluation the benchmarks that we use within the components. To do that, we take a look at the info supply for our salaries and ensure that 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 quite 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 enhance of three % and a most enhance of 6 % to align with market tendencies and assist with rising prices attributable to world inflation.
This resulted in a further enhance of $42,000 monthly or $504,000 per 12 months to our total working bills.
With a minimal enhance of three % and a most enhance of 6 %, salaries have been adjusted in whole 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 take 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 enhance or any indicator of a person’s worth or contribution to Buffer. These modifications are strictly to maintain up with the job market. There aren’t any modifications to another profit or grant because of rebenchmarking, and we by no means enable rebenchmarking to lead to decreased pay.
To go about this, we evaluate all of our salaries to the market utilizing our trusted compensation knowledge supply, Radford. Radford benchmarks hundreds of tech jobs world wide and provides in depth coaching for our crew to ensure that the way in which we match roles aligns with the way in which different corporations are matching roles available in the market.
In our wage components, we benchmark all roles to the San Francisco labor market based mostly on tech survey knowledge for the software program business. For all positions (excluding the chief crew), we use the info from corporations 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 corporations.
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 method that is smart inside Buffer. We’ve the power to determine after we wish to be influenced by the market and after 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 prospects is on the core of what we do, and we consider our pay ought to mirror that.
To clean out the volatility of the info over time and to remain true to our total technique, the 6 % cap in the course of the re-benchmarking season ensures that future merit-based promotions and pay modifications lead to wage will increase. This can be a choice that we’ve made given the elements we see at play proper now, however it’s one thing we’ll consider as a part of this course of annually.
We reassess each teammate’s wage at Buffer in the course of the rebenchmarking, however there are a number of 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 got questions on how we do that at Buffer or wish to share how your organization approaches compensation? Send us a tweet!