Truss The Process
· Summarized
Key takeaways
- Transparency in salary and performance fosters trust and fairness, especially in diverse and distributed teams.
- Creating a clear, behavior-based leveling system is crucial for equitable compensation and employee development.
- Involving employees in the process and maintaining open lines of communication builds trust and eases organizational changes.
- Organizations should adapt their assessment and communication systems as they grow, to keep clarity and fairness at the core.
- Transparency and open salary practices can positively influence company culture and attract aligned talent.
Summary
The Importance of Transparency and Equity in the Workplace
This section discusses the motivations behind Trust's decision to implement salary transparency and related equitable practices. The company aimed to foster a diverse and inclusive work environment by promoting transparency as a tool to support fairness, especially in addressing pay disparities linked to gender and race. The founders highlight their early commitment to these values and their recognition of existing disparities, which motivated them to take rigorous steps including developing systemized skill assessments for fair pay.
Developing a Skill Level System and the Leveling Matrix
The episode explores how Trust created their leveling matrix — a rubric for assessing employee skills and determining appropriate salary levels. The process involved multiple iterations, starting from broad company values to concrete behaviors exemplified by ideal employees at various levels. They emphasize that clear, behavior-based descriptors are crucial for fairness and clarity, especially as the company scales. The matrix also helps align performance, skill development, and salary, fostering a culture of transparency.
Implementing Salary Transparency and Its Effects
Trust publicly published a spreadsheet with employee names, levels, and salaries, which no one experienced salary cuts from. The process was designed to build trust and transparency within the organization, making salary discussions less fraught and more aligned with company values. The episode notes that transparency attracts the right talent and dissuades mismatched applicants. The practice also establishes ongoing review routines, with salaries updated regularly and shared openly to foster an environment of honesty and continuous improvement.
Communication and Trust in Conducting Organizational Changes
Trust emphasizes open communication and involving employees throughout the process. They conducted surveys, shared drafts, and solicited feedback, ensuring people felt they contributed to the final system. Leaders addressed anxieties early and used purpose-driven discussions to reinforce trust. The conversational tone in performance discussions is aimed at development rather than judgment, helping to maintain trust and alignment as the organization grows.
Challenges and Evolution as the Company Grows
As Trust expanded from about 20 to over 120 employees, the company faced the challenge of expanding the leveling matrix to include more detailed distinctions within leadership and roles. They discuss the complexity of communication in larger organizations and the importance of adapting structures to maintain fairness and clarity. Leaders highlight the importance of evolving performance metrics and communication practices to match the company’s growth.
Sponsors
- Trust · Trust is at Trust.works. That's T-R-U-S-S dot works.
Show notes
In 2016, software infrastructure consulting firm Truss made salaries transparent across the entire company. Salaries were revealed internally for all employees, from the executives on down. In this episode, Truss CEO Everett Harper and COO Jen Leech talk about why and how they approached their salary transparency project, and how they've adapted this system as the company has grown.
For more details, check out Jen's write-ups of the project on the Truss company blog: "Why We Made Salary Transparent" and "How We Made Salaries Transparent."
Show Notes
Truss website | LinkedIn | GitHub | Twitter - 00:30
Everett Harper's bio | @everettharper | Jen Leech's bio | @jennifermleech - 1:20
Buffer's policy on open salaries - 3:27
"The True Story of the Gender Pay Gap," a 2016 Freakonomics Radio episode - 3:47
"Demystifying the Gender Pay Gap: Evidence from Glassdoor Salary Data" - 4:52
Dreyfus model of skill acquisition (Wikipedia) - 6:43
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