Startups Employees Perks & Incentives, part1: Wages - Deepstash
Main Components of a Compensation Policy

The core principles of any good compensation policy:

  • Being as objective as possible: this ensures fairness and acknowledges a basic truth: people talk. The goal is to en...

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Startups Employees Perks & Incentives, part1: Wages

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In the economic theory, wages are linked to the value created by the employee. The problem is that value creation is very hard to measure.

Sometimes someone...

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You cannot rely exclusively on benchmarks and market practices, so you will have to build grids of compensation across your company. For each type of position (“tracks”), you shoul...

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Buffer, being a distributed team across the world, had to make sure they were competitive with the local market practices and keeping a fair formula for all their employees.

To build thei...

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  • First, employees are very impacted by differences of salary within their peer groups.
  • Second, this effect does not happen when employees learn...

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The main trade-off regarding wages is the split between fixed and variable salaries. The rule of thumb is to give 20% of the fixed salary in variable. In the US it is on average 50–60% and can go u...

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Netflix has made their compensation philosophy famous thanks to their amazing culture deck (slides 95–111): pay top of market, because one outstanding employee gets more done and costs less tha...

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Establishing the salaries of founders is never easy. Their profiles are very eclectic and for founders, the real incentive should be equity, not salary.

The general principle is the following...

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