Compensation is complicated but it is crucial that employees understand how and why they’re compensated the way they are. In this page you can read through Givebutter’s philosophy and process for setting an equitable pay structure.
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💛 Givebutter’s Compensation Philosophy
Each employee at Givebutter has a set of diverse professional skills and personal experiences that they choose to invest in Givebutter every day. We see your investments go beyond your day job to include your team, our values, and our growth. We recognize these investments by investing back in each employee in an equitable and transparent way that celebrates your performance, your impact on our mission and vision, and your continued exemplification of our values.
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👨🎨 Designing Compensation at Givebutter
There are 5 factors that go into determining benchmarks for salaries at Givebutter.
- Compensation Philosophy - The Compensation Philosophy explains our position on compensation, the ‘why’, and sets guiding principles that inform our pay strategy.
- Pay Strategy - The Pay Strategy is indicative of how we position ourselves against the external market and compensation benchmarks.
- Role Banding - Role banding sets the guidelines that are used to find comparable roles within compensation surveys. A role’s band will determine seniority, scope, and responsibility. You can read more about this in the Role and Banding Structure guide.
- Market data - We use titles and Role Banding to match roles with external compensation surveys. This results in the benchmarking data that is then used to determine the market rate for each role.
- Pay ranges - Using the market rate as a midpoint for pay for each role, we set ranges above and below that midpoint when determining pay for new hires.
Other terms to know:
- Base Compensation - An employee’s Base Compensation is the amount of compensation owed to the employee an a recurring basis (hourly, monthly, or annually) and does not include any Variable Compensation.
- Variable Compensation - Any type of pay that gets added to an employee’s Base Compensation is called Variable Compensation. This could be commission, bonuses, or equity.
- Total Compensation - The combination of all types of compensation an employee receives is their Total Compensation. This includes Base Compensation, Variable Compensation, Equity, and any additional benefits an employee may receive.
🗺️ Finding a starting point…
Step 1: Role Banding
Every role at Givebutter falls within a band on our Givebutter Banding Chart. Bands help us determine title, which then determines how we benchmark compensation for each role.
Step 2: Collecting Market Data