Given that we have different people all around the world that live under different economies and benefits, it helps to come up with a salary policy that was both simple and fair.
You are paid a little better than someone with your same job in your geographical area (so it’s adjusted for cost of living).
The goal of this policy is to remove salary as a something employees think about. Basically, people at Intempt should know that they are paid well compared to their peers. In other words, Intempt employees are not going to find a better paying job somewhere else, unless they are willing to move. And if they are, we're open to that and we'll adjust their salary accordingly (both up and down).
Once a year or so, I review the local averages from online job sites and look at how much each employee could get if they got a similar job in their same geographical location now, and we adjust each person's salary accordingly. It's subjective, but we discuss it together one-on-one and come up with a figure that makes both of us happy.
I want salary to not be part of the equation, people should do their best work not for a raise, but because they want to. Again: people want Autonomy, Mastery and Purpose, all things we try to provide as an employer.
How we calculate the cost of living
We get the relative cost of living in USA, EU from the OECD Consumer Prices tables. We get the relative Consumer Price Index for the US from the Bureau of Labor Statistics' Consumer Price Index tables.We take the latest data available from each and combine them, coming out with a score for each of the following regions: Lithuania, USA West, United Kingdom and USA Texas. We use this regional score to weigh the seniority amounts.