Defaulting to Transparency

At Buffer, “a 10-person startup that allows users to schedule social media updates,” founder Joel Gascoigne earns $118,000 a year and he’s perfectly okay that everyone in his company knows that. That’s because Gascoigne has a policy of “defaulting to transparency” which means all 10 of the employees at his company knows what everyone is earning — each person’s salary is posted to an internal wiki. The salaries are determined by a formula:

“We haven’t had anyone ask for a raise yet,” says Gascoigne, “But we have introduced new levels and variables to the formula. As we grow we’ll need more team leads, for example.” If someone were to negotiate for a raise, they probably wouldn’t be a good fit, he says, arguing that paying above market rate as well as providing other perks should encourage people to stay for the long haul. If someone is simply chasing short-term benefits like money, there’s a culture mismatch.

I think this is terrific. Pay transparency is already a thing in the public sector, and I think it’s great that Gascoigne gives everyone at his company as much information as possible so everyone is on the same page. (Thanks Becca, for the pointer.)

Support The Billfold

The Billfold continues to exist thanks to support from our readers. Help us continue to do our work by making a monthly pledge on Patreon or a one-time-only contribution through PayPal.