In their blog, Corporate Rebels write about Viisi, a Dutch financial services company where …
… every employee knows what he or she will earn in the future.
This means … during the job interviews I will know:
1) what I will earn if I join, and how much I will earn during all the years I work there
2) what everybody else in the company earn
What?
“The candidates have responded very positively to the fact that they no longer have to negotiate.”
What’s the logic behind all this?
“The starting point was the question how we could least disturb the intrinsic motivation of the employees and how we could take out demotivating or counterproductive forms of extrinsic incentive.”
What if I get attracted to a competitor who woos me with bigger pay?
“Because we are at the top quarter of the benchmark and salaries are rising automatically […] this creates psychological safety and you don’t have to worry about it all the time.”
With no reflection in pay … how will I stay motivated to do my best?
“… insufficient performance is solved by the group. If the framework conditions are right, people have an intrinsic need to become better […] and in a team, people help each other.
Only if someone is a real “asshole” or does not do his or her part, will the team colleagues not accept it. In the long run, the person then leaves on his or her own, because you can’t stand the pressure of the group for long.”
“But what we do have is a participation in shares. Ten percent of the shares are reserved for employees. Everyone gets one point every year, regardless of job function and working hours.
In the event of a sale or IPO, all points are added together and the value of the employee shareholding is divided by the number of points.”
Exciting! I love it when people try things out and find new ways to choose from. Article on Corporate Rebels: https://corporate-rebels.com/why-we-should-not-punish-intrinsic-motivation/