Working out pay in a fair and transparent way
With this system, the aim is to give people the right to keep their compensation private but to make the process transparent and rational so that all team members are assessed by the same framework which is designed to put into practice our Pay Principles.
At DEV, pay is calculated with a two stage process:
1) Base Rate
A figure is established using a % of going market rates for each role. This is the foundational rate for each role and will account for at least 50% of a given person’s salary. These Role Rates are reviewed annually to ensure pay progression.
2) DEV Rate
This figure accounts for activities within the role and is calculated based off of the following three add ons:
- Autonomy: Ability to deliver and function independently in the role. Based off of experience prior to joining DEV and longevity of service in the team.
- Mastery: An assessment of the skills required to deliver in a given role. Takes into account the seniority of the role being hired for and the level of skill that team member brings to the role. Allows for pay progression through professional development and adding new skills which can benefit DEV.
- Purpose: Efforts being made to help us deliver on our mission. Examples of actions that could contribute to the purpose measure could be taking on a role on the board, being a regular project lead, mentoring new team joiners, having line management responsibility and so on. Allows for pay progression which acknowledges that we value people taking on responsibility and progressing their careers at DEV but this is not solely measured through traditional means such as a line management hierarchy.
Within each factor there are three brackets conforming to a level 1-3 format or good/better/best. Within each of the above add on areas there is the potential to add up to 33.3% (with rounding if needed) of your Base Rate, adding up to a potential total of 100% extra on top of your Base Rate.
Therefore your salary comes from: Total Pay = Base Rate + DEV Rate (Autonomy + Mastery + Purpose)
Here's how this would work in practice are:
If DEV wanted to start producing our own podcasts focused on tech in the third sector, we might need to hire a podcast producer. In this scenario the produce Base Rate, based of our research of market rates, is £20,000. We are looking for an entry level person who has technical skills, has some basic experience and will grow in the role. This means we would hire for a position with level 1 of Autonomy (£0 - £2,000), level 2 of Mastery (£2,000 - £4,000) and level 1 of Purpose (£0 - £2,000). With the formula of Total Pay = Base Rate + DEV Rate (Autonomy + Mastery + Purpose) the bracket for the position would be £22,000 - £28,000.