In search of perfect compensation plan, we implemented Salary Formula at EL Passion roughly half a year ago. We did our research, we read the books, we searched the web, we watched the talks. We thought we were ready. Instead, we found ourselves walking through a minefield. In this talk we will share our experience with implementing Salary Formula in a ~50 employees software house. We will describe the challenges we faced, mistakes we made and lessons we learnt. A talk at Agile By Example 2016 Conference, prepared by Grzegorz Kemski and Karol Sarnacki (the talk is available here: https://www.youtube.com/watch?v=NzWe5uo18tI) You can check the latest iteration of EL Passion's Salary Formula here: https://www.notion.so/elpassion/Salary-Formula-Career-Path-1f91cbb3fdf048f597ea18563d4e7e16

1. Karol Sarnacki
CTO
@karolsarnacki
hello@elpassion.com
elpassion.com
Grzegorz Kemski
COO
@grzegorzkemski

2. Take the Money Issue off the Table

4. ?

5. S = L * (T +∑t) + E

6. Level Technology Tags
EL Passion
Experience( )* ++

7. Level Technology Tags
EL Passion
Experience( )* ++
Level Base Salary
Junior 1
Junior 2
Junior 3
Mid 1
Mid 2
Mid 3
Senior 1
Senior 2
Mentor

8. ● Level-up: Every 6 months
● Based on: Peer Reviews
Level Technology Tags
EL Passion
Experience( )* ++

9. ● Back-end: 110%
● Front-end, Mobile, Design: 100%
Level Technology Tags
EL Passion
Experience( )* ++

10. ● Involvement
● Ownership
● Impact
● English Pro
Each: +5%
Level Technology Tags
EL Passion
Experience( )* ++

11. (Years @ EL Passion) *
Level Technology Tags
EL Passion
Experience( )* ++

12. Prototype

15. 30%
No pay cuts
0%
Only raises

16. Influencers

17. Dismissed:
Formal Education
Fame
Years of Experience

18. FAQ Doc

19. ● Create prototype
● Keep it simple
● Perform simulations
● Invite influencers

22. Corrections

23. Recruitment

24. Version 1.1

25. Transparency

26. ● Don't panic
● Make corrections
● Rethink recruitment
● Discuss levels, not salaries

28. Myth 1
People will cheat

29. Myth 1

30. Myth 2
Dehumanizing effect

31. Myth 3
People will leave

32. Nobody left

34. Was it a good decision
to implement the Salary Formula?
Yes - 88%No - 6%
Don't
care - 6%

35. Thank you!