Content Crafter Courtney Seiter speaks to Buffer founders Joel Gascoigne and Leo Widrich about Buffer’s new salary formula. It’s not new, but still very relevant.
What is it?
A recorded Skype call in which the two main men of Buffer tell why the old salary system had to change. The image quality could be better, but the content is strong. Social media scheduling company Buffer always chose to do things differently. They don’t have an office and they are highly transparent about the salaries they pay. But after two years of working with a salary formula, some things had to change.
Why is it interesting?
It is rare and refreshing to hear leaders of a company talk openly about the choices they make. When Buffer introduced the first salary formula the company was still small. Now that they’ve grown to a company with 65 people the old formula had to be updated. Main issue: the outcome of the old formula made Buffer not competitive enough in places like New York and San Francisco. So the company didn’t have people working there. The new formula must change this. It takes the market, location, loyalty and dependency into account. Fascinating stuff.
Key take away/Quote:
“We always wanted to be generous. That means we always pay above market rates and in some places a lot above.”