You may have already seen our salaries and salary formula, but another part of our process is to annually review the benchmarks we use in the formula. To do this, we look at the source data of our salaries and make sure that all salaries on our computer are up to date with current market rates. We have been doing this since 2018 and never lower our salaries during a rebenchmarking. Over the last two years, we’ve also made sure that rebenchmarking always produces an increase rather than an adjustment.
Here’s an inside look at our most recent April 2022 assessment, followed by a deeper dive into how we approach salary revaluation in general.
The numbers behind Buffer 2022’s salary revaluation
This year, we have adjusted with a minimum increase of 3 percent and a maximum increase of 6 percent to align with market trends and help with rising costs due to global inflation.
This resulted in an additional $ 42,000 monthly or $ 504,000 annual increase in our operating expenses.
With a minimum increase of 3 percent and a maximum increase of 6 percent, salaries were adjusted in total between $ 2,078 and $ 13,500 per person for the entire team.
How salary rebenchmarking works in Buffer
Every year in Buffer, we do a salary rebenchmarking, where we look at all our salaries in Buffer and adjust them upwards to keep up with the current market. This is not an increase in merit or any indicator of a person’s value or contribution to Buffer. These changes are strictly to keep up with the job market. There are no changes in any other benefits or subsidies as a result of the comparative revaluation, and we never allow the revaluation to lead to a reduction in salary.
To do this, we compare all of our salaries to the market using our trusted compensation data source, Radford. Radford refers to thousands of technology jobs around the world and provides extensive training for our team to ensure that the way we fit roles aligns with the way other companies match market roles. .
In our payroll formula, we compare all roles with the San Francisco job market based on data from technology surveys for the software industry. For all positions (except management team), we use company data of all sizes. For the executive team, we add count filters to make sure we don’t compare ourselves to the salaries of much larger business executives.
From year to year, it is not uncommon to see some variation in the reference figures, either up or down. Ultimately, benchmarks are a benchmark and we apply them in a way that makes sense within Buffer. We have the ability to decide when we want to be influenced by the market and when we want to disrupt the market. For an area like customer advocacy, for example, we continue to lead the market in terms of payment because supporting customers is at the core of what we do, and we believe our pay should reflect that.
To smooth data volatility over time and stay true to our overall strategy, the 6 percent limit during the re-benchmarking season ensures that future merit-based promotions and salary changes generate salary increases. . This is a decision we have made considering the factors we see at stake right now, but it is something we will evaluate as part of this process each year.
We reevaluate the salary of all teammates in Buffer during rebenchmarking, but there are some cases where some teammates will not have their salary adjusted, either because they have recently moved to a new work code that already takes into account inflation or because a larger change in its role. it is currently under construction.
Do you have questions about how we do this in Buffer, or do you want to share how your company handles compensation? Send us a tweet!