Culture | Scaling Your Startup S2 E7: 15five's David Hassell & Balloon's Amanda Greenberg | E1221

Compensation Challenges

Addressing remote compensation challenges, Jason Calacanis and Amanda Greenberg explore the complexities of adjusting salaries based on geography and cost of living. Jason shares an example of a sales executive who moved from Park City to San Francisco, receiving a 30% salary increase due to the higher cost of living, only to return to Park City with the increased salary intact 1. Amanda acknowledges the difficulty of forming a clear opinion on this issue, as companies grapple with whether to maintain city-based salary premiums or shift towards a more democratized compensation model 1.

We're moving more towards kind of a more democratized workforce where compensation is based on the value you contribute, not based on where you live.

--- David Hassell

David adds that while a democratized approach is ideal, high-cost living centers might still justify higher pay 1.

   

Negotiation Philosophy

The philosophy of salary negotiation is another complex issue discussed by David Hassell and Amanda. David suggests that having a clear compensation philosophy is crucial, as it prevents the "squeaky wheel" from getting higher pay simply by being more vocal 2. He cites Buffer's approach of having a transparent formula for compensation, which considers location but maintains consistency 2.

You have to have a comp philosophy that is fair and balanced and is promoted in a way that says, this is our philosophy.

--- David Hassell

Amanda points out the systemic issues in negotiations, particularly how women and minorities often receive less compensation, suggesting that clear guidelines could help mitigate these disparities 3.