ADVANTAGES OF THE APPS WITH LOVE WAGE MODEL
NO MORE WAGE NEGOTIATIONS
We no longer have wage negotiations and discussions and we evaluate employees according to criteria that are important to us in the company.
Even if we don't put every wage up on the notice board, the model is the same for everyone and everyone can work out roughly what wages other people receive. Employees can also estimate what their own wage will be over years, since wages develop year by year.
IMPROVED WORKING ATMOSPHERE AND MOTIVATION
Since everyone is classified according to the same model, you no longer have to worry about whether someone negotiated better than you. There are transparent and fair criteria that are applied equally to everyone.
The figures in the model can be adjusted. If a company is doing better, either a share in the profit can be distributed or the basic salary can be adjusted. Other companies can also enter their own figures in the model and thus obtain a tailor-made solution.
Long wage negotiations are no longer necessary. Wage costs can be better planned and less administrative work is required.
ESTABLISHING PAY EQUITY
Wage totals are generated by the model, not the boss. Wage totals have become somewhat similar, since there are no more extreme outliers. The model produces gender-neutral wages based on criteria that are the same for everyone.
Of course, we also looked at existing alternative models, such as a model from Silicon Valley in which employees determine their own pay. This sounds cool at first, but the salary expectations have to be defended in front of the whole team, which creates enormous psychological and social pressure. It also favours people with big egos or popular employees who do not necessarily do a better job or have more experience.
This wage model means it is up to the employer and the team leaders to create conditions in which employees can develop and evolve their skills and motivation to the best of their ability. Those who are not motivated and cannot deliver their best performance will be able to coast along in this wage model.
We are aware that this version can still be optimised. The first criterion "Responsibility/field of activity" in particular is not yet completely free of debates on the principle. Nevertheless, I am of the opinion that there are different levels of responsibility in a company, even though each of us bears a high degree responsibility and each of us could not achieve a good result without the others.
A remuneration system that is perceived as fair overall facilitates better teamwork and good teams attract good people. The wage total for new employees is rather low, but the wage development is clear. We have to win over so-called "top shots" with something other than purely monetary incentives.