Compensation = UK Benchmark * Level factor * Location factor * Signal factor * (exchange rate if not USD)
Each part
UK Benchmark
Position ourselves at the 75th percentile for all positions at a minimum in the UK. We need to remain competitive and ensure we can attract great talent.
The business model of MUI heavily relies on this target: we build tools for other developers, they expect tools that are of higher quality than the ones they can build internally.
High: x1.2 (>85), e.g. New York. Note that it’s not enough to attract people living in San Francisco or Switzerland.
Intermediate: x1 (60-85), e.g. Paris, Amsterdam, London. The baseline for the UK Benchmark.
Average: x0.85 (40-60), e.g. Lille, Bangkok, Hong Kong
Low: x0.7 (<40), e.g. Sao Paulo, New Delhi
https://www.numbeo.com/cost-of-living/rankings.jsp - Cost of living + rent index
This means a compensation difference of up to 1.2/0.7 = 71%.
Level factor
The nomenclature can be adjusted for each job family to ensure the appropriate level to select is clear.
Individual contributor
Junior: 0.8 x ic_ttc
Intermediate: 1.0 x ic_ttc
Senior: 1.2 x ic_ttc
Expert:
Manager
Staff/Manager: 1.0 x manager_ttc
Senior Manager: 1.2 x manager_ttc
Director
Director: 1.0 x director_ttc
Senior Director: 1.0 x seniordirector_ttc
Signal factor
Factor according to performance アクセス不可:
For new hires, we should be targeting a 0.85 - 0.90 Compa-ratio to allow space in the salary band for performance-based increments.
If an employee has exceeded a Compa-ratio of 1.15 we might consider whether or not a level up in seniority is required or if a promotion might be more appropriate. If either of the aforementioned is not applicable, we might consider a legacy approach and implement a freeze on the employee's salary until they are within the salary range for their role again.
If either of the aforementioned is not applicable, we might consider a legacy approach and implement a freeze on the employee's salary until they are within the salary range for their role again.
This means a compensation difference of up to 1.20/0.85 = 41%.