Ariel Umansky decided to reject his proposal for a 7% salary increase in December 2020. He felt that he could not justify it in front of his colleagues.
In fact, it was the second time in five years that he rejected a salary increase working in 10 Pines, a software company from Argentina.
“I felt a bit insecure and exposed for earning close to or even more than people who considered they had a better performance than me “, explains Umansky. “It’s easy to feel like a fraud.”
At this firm, salary changes are decided three times a year in the “fee meeting.”
Everyone participates , except new hires who are still on probation. Workers (or the mentors who represent them) can request a raise, which is then openly discussed.
10 Pines is a technology company founded in 2010 with 85 employees and headquarters in Buenos Aires . It makes software for clients like Starbucks and Burger King, creating things like online loyalty cards, apps, and e-commerce platforms.
Every year, on 50% of its profits are distributed among the staff.
“A key aspect It is not knowing how much others earn, “says Umansky,” but knowing who earns more than who. It’s the hierarchy, right? ”
His horizontal philosophy
10 Pines aspires to have a horizontal hierarchy and be transparent with employees, as much as possible.
After a three-month trial period, new employees join the rest of the team in monthly open meetings at key company decisions are made, such as evaluating new clients, expenses, company finances and, of course, salaries.
There is no CEO or managers within teams, although there are high-level figures known as “associates” and “teachers.”
“As there are no bosses who decide the increases, we delegate power to town “, says Jorge Silva, co-founder and“ teacher ”of 10 Pins.
“We don’t want a wage gap like in United States”.
New members can negotiate their own salary to a certain extent, Silva says. The proposed salary is discussed with those who have similar experience in the company to obtain their consent.
In the final interview of the recruitment process, the candidate meets the entire team of some people, an introduction to the way group dynamics work.
No questions techniques at this stage, it’s more about learning about people’s interests and a chance for them to see how it works 10 Pines.
“We have stopped the hiring processes at this stage,” says Silva. “Even if someone is a genius, we can feel if they will create tension by not fitting in on the team.”
sociocracy ”
10 Pines calls his approach “ sociocracy ”. He was inspired by the Brazilian businessman Ricardo Semler and his experience transforming his family’s manufacturing company, Semco.
It turned it into an “agile and collaborative company”, with workers who were in charge of supervising the matters that were traditionally left in the hands of the managers.
He found that this led to low staff turnover and revitalized the company. He wrote about it in a book called Maverick!
“We take it as our Bible,” says Silva.
According to Ben Whitter , author of Human Experience at Work (Human experience at work) and director of the consulting firm and coaching of employees HEX Organization, in the United Kingdom, there are more and more “progressive companies and transparent. ”
He believes that the idea of having transparent salaries can be a good way to level the playing field , between men and women, for example.
“In many companies, wages can be set in the shadows. But in this way, it becomes clear and accountable. ”
¿ Without problems?
However, you may also see some drawbacks in the strategy of 10 Pins.
While this idea may work when you have 80 employees, if this number is doubled, the advantages may decrease, says Whitter .
And hiring decisions based on the individual joining the entire workforce can put who tend to be more introverted at a disadvantage.
At the same time, it creates a “natural groupthink bias, where people make decisions that they would not normally make individually, which raises problems about diversity and inclusion ”.
However, in 10 Pines say they run diversity programs, such as women-only learning schemes, and believe their approach can be done on a large scale.
“We have evolved the process during 12 years ”, explains Ángeles Tella Arena, a software developer with experience in the signature.
“For example, we started salary discussions when we had 30 employees and we were afraid it would not work with 50, but we keep adapting. It is necessary to update the processes to maintain trust “.
- The US city where a salary of more than US $ 100. 000 is insufficient to support a family
It may be necessary to create a second office if the company continues to grow, which would replicate and run the same system autonomously , he says.
“The key is to understand that there is a difference between ‘equality’ and ‘justice’ ”, Says Jorge Silva.
“ We are not all the same, but we try to be fair. We don’t want to be like the classic company that tries to control employees and treats them like children ”.
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