In Q1 2019, as part of our first annual People Month (performance and compensation reviews for the whole team, held in February), we created our first formal team compensation philosophy. Our primary goal in beginning this process was to create a fair, transparent, and accessible approach to how we set compensation for our team. We believe that compensation is a key strategic tool that allows us an opportunity to live our company values in a very tangible way.
Our compensation plan is designed to attract, retain, and motivate talented team members who drive our success and uphold our values. Without you folks, there is no SkyVerge.
Like many other fully distributed companies, we’re in a unique spot when it comes to benchmarking our salaries. Typically, a company will benchmark salaries and total compensation packages to the city in which their headquarters resides. Without a formal headquarters to orient ourselves, we decided to take the average of several US tech hubs, and benchmark to that average. We chose to average Atlanta, Austin, Boston, Chicago, and Los Angeles.
(You’ll notice we left out San Francisco, and that’s intentional! We wanted to benchmark ourselves against other markets where we’re competing for talent. It didn’t feel reasonable to include SF given it has market dynamics that are wildly above average and are not reflective of the market in nearly every other area that we hire in.)
Working with PayScale, we selected compensation data from companies within the SaaS industry, with an average company size of 50 people and ~$5m or more in revenue. We targeted the 65th percentile to set our base pay for each role, and then created salary bands with a ~6% width using that 65th percentile as the max, and adjusting as necessary. As roles advance and become more senior/into the leadership side of things, some of the bands increase to a 10% width to account for variances in work history, specialization, and experience.
We then used the career frameworks to match each role/level with its corresponding compensation band. This allows us to offer a competitive, market-based compensation for each role/level, while still allowing for personal advancement and career progression within and between roles/levels. Individual compensation is set within the corresponding band for your role/level, and is set by managers. Your compensation placement will be discussed during your annual Comp Eval conversation during People Month.
A note on salary denominations
- For US team members: salaries are denominated in USD.
- For Canadian team members: salaries are denominated in CAD.
- For team members from all other countries: our default is to denominate salaries in USD, unless otherwise requested, discussed, and agreed upon with an individual team member. We don’t adjust salaries for currency fluctuations except when currencies have changed by a significant amount.