Salaries should be fair for all employees, probably nobody doubts about it. In STX we felt that our salaries depend more on the personal negotiation skills, rather than on the exact knowledge. Inspired by Management 3.0 book by Jurgen Appelo, we’ve decided to implement the Salary Formula in our company. We gather the whole management team and started crafting magical formula hoping that it will solve all our problems. Quite fast we realized, that the theory is quite simple but the implementation is tricky, because a lot of pitfalls is not covered in available papers. In this talk I will share what we have learned last year and what we need to improve in future to make this formula as fair as possible.

1. How to implement Salary
Formula from scratch?
Jacek Wieczorek, ABE 2015, Warsaw

2. Jacek Wieczorek
@jacekwieczorek
http://agilecoaching.pl
Agile Coach
http://agile247.pl

3. the story

4. quick growth

5. no clear rules

6. expectations not set

7. no fairness

9. dry run

10. experience
seniority
versatility
location
advocate

11. experience
1
.
.
.
n

12. seniority
intern
junior
regular
senior
expert

13. versatility
none
narrow
medium
fullstack

14. location
poznań
wrocław
piła

15. advocate
none
minor
good
crazy

16. salary =
base * (experience + seniority +
versatility + location + advocate)

17. Parameter Value Weight
experience 1 0,7
seniority junior 0,3
versatility medium 0,2
location Poznań 0,95
advocate minor 0,1
base PLN * (0,7 + 0,3 + 0,2 + 0,95 + 0,1) = final_salary PLN

18. Parameter Value Weight
experience 1 0,7
seniority junior 0,3
versatility medium 0,2
location Poznań 0,95
advocate minor 0,1
base PLN * (0,7 + 0,3 + 0,2 + 0,95 + 0,1) = final_salary PLN
?

20. 77%
developers
52%
testers

21. some people left

22. too few steps

23. (devil’s) advocate

24. inspect & adapt

25. fair for everyone

26. clear rules

27. transparent
expectations

28. time saving

29. time consuming

30. quite simplified

31. less flexibility

32. difficult to maintain

33. - Scrum Guide
“Scrum is simple to understand
and difficult to master”

34. “Salary Formula is simple to understand
and difficult to master”
introduce
- Jacek Wieczorek ;)

35. thank you!
@jacekwieczorek
http://agilecoaching.pl
http://agile247.pl