This review is meant to ensure that each team member’s compensation stays competitive (Compensation formula). They are to be seen not so much as “raises”, but more as paying staff at the top of their personal market. The market for talent is what it is.
Note that for significant role changes/promotions, the compensation is updated once the new role moves from Interim to confirmed.
Frequency
Every 12 months, with a minor review cycle every 6 months to fix anomalies.
When
Each cycle happens at the same time as the Bi-annual performance review: Bi-annual performance review: How, see the dates at which point managers start to look into this topic:
| Cycles |
Start |
Start level updates |
Start compensation updates |
Target of the first month of effect of comps change |
| Yearly compensation review |
January 15th |
+2 weeks |
+2 weeks |
February |
| Market check-in |
July 15th |
+2 weeks |
+2 weeks |
August |
Eligibility
People who joined less than four months ago are not eligible.
Cycles
- Yearly compensation review. This starts to take effect from the 1st of February. Depending on how fast we do the feedback cycles.
- Market check-in. This starts to take effect from the 1st of August. Depending on how fast we do the feedback cycles.
Most people won’t get an increase at this point, it’s meant to keep the compensation in sync with the market when we can’t wait for the yearly review (6 months later).
Eligible staff is those who are (close to) exiting their pay bands:
- Their performance factor moved to "Exceeding expectations” in the last performance review cycle There are 4 different Signals possible for each cycle: If this level of performance has been achieved reliably, per Signal factor, it should lead to an increase in compensation.
- Their “Rate $ /Formula” has fallen below 0.85 (regardless of performance).
Process
Before the cycle “Start”
- @Ops Iterate on updating the formula and how benchmark data is used to reflect comps goals.
At the cycle “Start”
- @Ops Update https://docs.google.com/spreadsheets/d/11_gwaGgbyzdmd9Y2pL3oO3Bt92aE1UvFbvKoXP4b674/edit?gid=166937324#gid=166937324 benchmark data- this includes pulling all data from our current benchmarks (levels.fyi, glassdoor, pave, opencomp, Wise career ladder, cleo-ai) and converting it to contractor hourly rates using https://docs.google.com/spreadsheets/d/1liPpNrevvIhcN8_zKpWPA3hRA0LY36pw7gsgJMfVXlw/edit?gid=0#gid=0
- Pay bands
- @Ops Create two new columns in https://docs.google.com/spreadsheets/d/11_gwaGgbyzdmd9Y2pL3oO3Bt92aE1UvFbvKoXP4b674/edit?gid=166937324#gid=166937324 to account for the new quarter review cycle. Set the background color to yellow, for the peer reviewer to remove (back to transparent.
- @Ops Pull in the new data.
- @Ops Add Google Sheet notes, including comments on role alignment, small data-set dependence, and inaccurate figures.
- Location factor
- @Ops Update each cells in https://docs.google.com/spreadsheets/d/11_gwaGgbyzdmd9Y2pL3oO3Bt92aE1UvFbvKoXP4b674/edit?gid=1659061501#gid=1659061501 (Location factor)
- @Ops Set the background color to yellow, for the peer reviewer to remove (back to transparent.
- @Ops Creates suggested pay bands with gross salary for employees, hourly rates for contractors, and suggested location factor differentials
At the cycle “Start Level updates”
- @Manager Come up with level and signal proposal. There are 4 different Signals possible for each cycle: