Transparent Compensation Matrix Template

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1	Context
2	This is the template for the transparent compensation matrix we use internally at Unito. Everyone in the company is aware of how much everyone else makes. There's no need to hide that information as salaries are set based on a skills-based scale and everyone at the same level in the same role is paid the same salary. The salaries themselves are informed by different data sources to ensure we're paying good wages — in our case Option Impact and Radford. We choose the data pulled from these sources based on percentile at which we pay out, location, and company stage.
3	The purpose of each tab in this spreadsheet
4	- Salaries per role. Where compensation bands for each role are built. Each role has 6 levels from entry level to director (common levelling system used by data sources / executives fit outside of this range). Managers & Individual Contributors earn the same salary when at the same level. - Data source 1 and 2. To input data from each of your data sources. Enables you to add data for 2 locations, a useful feature if your can't find enough reliable data for your local market. - Staff list. A list of team members and their salaries. This increases transparency and is useful in analyzing the impact any salary update will have on your payroll budget. - Job descriptions. Pull the definition of each 'job family' you referenced from your data sources to show staff why these were chosen for each role (tip: sometimes it makes sense to blend 2 job families together to create the right band for a specific role). - Analysis tabs. To crunch the numbers. If you're changing salaries, look at the budget impact per team, department, and seniority level.
5	How to use this template
6	1- Choose your data sources. 2- Choose how you will filter the data based on company stage. For staff, you will often need to use a wide filter to get enough data (eg. pre or post revenue). For executives, you can go more granular and add filters like fundraising stage. 3- Choose the percentile at which you want to pay. At Unito, we align this percentile with the stage of our company, see more about that in the "Milestones" section below. 4- Check the integrity of the data for your local region (Are there enough data points? Are the numbers coherent from one level to another?). If your local region doesn't have reliable data, add data from a reference region with more data points (for startups, San Francisco is often a good one). Note: the spreadsheet is setup for use of a reference region by default, you will need to modify formulas if you don't need one. 5- Input the data in the spreadsheet (input in the cells in yellow only, the cells in white will be filled out automatically). Start with 'Data Source 1 & 2', then 'Salaries per Role', then 'Staff List' 6- Analyze and fine tune the results obtained. Check the numbers against your local market (eg. candidate salary expectations), you might need to pull more data for some roles. Use this document in tandem with the Salary Levels template in the toolkit. And the entire point of this matrix is to be transparent with staff, so make sure you share it!
7	If you want to go to the next level...
8	Gender Pay Gap Adjustment At Unito, we've also adjusted salaries for roles traditionally dominated by female in order to combat gender bias in salary averages. Use the 'Gender Distribution Per Role' and 'Salary Increase per Percentile' tables if you'd like to do something similar. Milestones We also have a system in place to align our compensation strategy with the growth of our company: we set revenue milestones to gradually increase the percentile at which we pay as the company grows (eg. when we hit 10M ARR, we'll start paying at the 60th percentile. Use the 'Salary Increase per Percentile' table if you'd like to do something similar Steps If you feel like 6 levels won't be enough to place the varying levels of seniority of your staff, you could add steps between the levels. We recently added mid-steps after level 3 is reached. A step-up represents 50% of the salary increase to the next level.