Open Salary Model at Mobingi
Salary plays an important role for recruitment. It’s not only that the business and the environment are the key factors to deciding to join a company or not, compensation indeed makes the decision a fundamental breakthrough.
In silicon valley a company called Buffer publicly shared its Open Salary model for calculating salaries for their employees. It’s a really smart idea for startup recruitings and makes it crystal clear for potential new comers to have an idea of what they can expect on their salaries before even attending the interview.
Mobingi has made some modifications on the formula and applied it under Japan’s situation, and uses it as an internal recruitment tool. For any new hires, ever since the first contact we share our salary calculation model to them. We feel this makes people feel less worried and frustrated before taking the skill set interview sessions.
So, here is what the idea looks like (follows with explanations) :
- ROLE — The position of the job. Here is a list of Mobingi’s opening positions, and base salaries are arranged from JPY3,000,000 ~ 10,000,000 according to the role:
- Software Engineer
- Support Engineer
2. EXPERIENCE — The multiplier factor defined by the years of experience of the related industry
- Beginner: 1x
- Intermediate: 1.1x
- Advanced: 1.2x
- Master: 1.3x
- Superior: 1.4x
- SuperNova: 1.5x
3. CHOICE — This is an option to choose either receiving extra salary or extra stock options
- JPY 600,000 extra pay, or 50% more on stock options.
4. LOYALTY — For every year a teammate stayed at Mobingi, they’ll receive a general pay raise of 5%. This is applied on top of all of the above.
So, what we are trying to indicate here is actually telling our employees (and future employees) that by knowing your Role base salary and years of your experience you can estimate your on-board salary. And as long as you are with us year by year you’ll see a constant salary increase. You can also choose to adopt more stock options or to get extra payment on annual salary.
There are of course other compensations at Mobingi as well, such as bonuses, communication waivers, social securities, etc. But as for a fast growing startup, it makes sense to provide enough information to potential talents so that they decide seamlessly whether to grow with the company together, by taking the risk from beginning, but with the confidence on the journey and looking for big return in the long-run.