src=”https://buffer.com/resources/content/images/2022/05/matt-palmer-s1NwZl1hxWE-unsplash.jpg” alt=”Why We Increase Our Team’s Salaries Every Year”>
While you may already have seen our salaries and our formula for calculating salary, we also review each year the benchmarks used in the formula. We look at the data source that we use to calculate our salaries to ensure that our team’s salaries keep up with market rates. Since 2018, we have been doing this and never decreased salaries during rebenchmarking. We have also made sure that rebenchmarking results in an increase, rather than a decrease over the past two years.
This is an inside look at our April 2022 rebenchmarking. Then, we dive deeper into how we approach salary benchmarking generally.
Buffer’s 2022 Salary Rebenchmarking
To align with market trends, and to help deal with the rising cost of living due to global inflation, we adjusted this year with a minimum 3 percent increase and a maximum 6 percent increase.
This led to an additional $42,000 per month and $504,000 per year in operating expenses.
The team received a minimum 3 percent increase and a maximum 6 percent increase in salaries. Total salary adjustments were between $2,078 to $13,500 per employee.
How Salary Rebenchmarking works at Buffer
Buffer does a salary benchmarking every year. This involves looking at all salaries and adjusting them to reflect the market. This does not indicate a person’s contribution or merit. These changes are made to keep pace with the changing job market. Rebenchmarking does not affect any other benefits or grants. We also do not allow rebenchmarking for lower pay.
Radford, a trusted data source for compensation data, compares all our salaries with the market to do this. Radford benchmarks thousands upon thousands of tech jobs all over the globe and provides extensive training to our team in order for us to match roles with other companies.
We use data from the tech industry to benchmark all positions in our salary formula. We use data from all companies for all positions, except the executive team. To ensure that we don’t compare salaries at larger companies to the exclusion of executive staff, we add headcount filters.
It’s not unusual to see benchmarked numbers fluctuate from year to year. Benchmarks are just a reference point. We use them in a way that makes good sense within Buffer. We can decide when we are going to be influenced and when we want the market to change. We are the market leader in customer advocacy. This is because our core business is supporting customers. Our pay should reflect this.
The 6 percent salary cap is in place during the re-benchmarking period to limit volatility and keep to our overall strategy. This will ensure that any future merit-based promotions or pay changes will result in salary increases. We have made this decision based on the current factors, but we will continue to evaluate it as part of the yearly process.
Buffer reassesses every teammate’s salaries during the rebenchmarking. However, there are some cases when some teammates won’t have their salaries adjusted because they moved to a new job that accounts for inflation or because their current role has changed.
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https://onlinemarketingagencies.net/?p=4306
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