Introducing skills based remuneration at idalko

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pexels-photo-262438-min-1Last week we have been looking for how we should name the levels of the jobs. We are currently recruiting people and the standard approach is to recruit ‘Junior development engineer’, ‘Senior software engineer’ …

 

The drawback of this approach is that it is easy to mismatch people.  Some people consider themselves a senior while our standards would rank them at mid level.  In many cases levels are associated with salary and the higher the level – the better the salary.  The resulting discussion is not very positive.  If you get to an agreement, either party might leave the discussion with a sour feeling, affecting the relation until you depart.

 

The discussion resulted in a point that we have to approach the problem differently.  The fact is that as an organization you want to pay for skills that you need.  You might have a position for a marketer, which can’t be filled with someone having a financial background.   While both are seniors, you don’t need an excel master to define your communication plan – do you?

 

So we decided to drop the idea of levels and start to establish a list of skills around 4 axes:  Technology, Team, Project, and Communication.

This approach has a number of advantages:

  • Candidates are now weighted based on these 4 axes.
    Some of our candidates are better in technology, while other are better in communication.  Still, both can be valued equally
  • Staff understands how they can evolve and grow in the organization.
  • Identifying gaps in the team is easier as the graph will show what skill is lacking

Some interesting blogs on this topic