There are a couple of factors, and I will structure it into two buckets, new employees & existing employees.
New employees: Usually, the job description defines clearly what title a person would get, what seniority we are looking for and that then is used as an input factor for some market research to determine what the market value for such a position is. That's a bit hard when you are hiring in multiple different countries/regions. Then there's what a new employee expects from us. That's important as well (we on purpose don't ask what people are making right now; it's solely about what they expect to make once they work for us).
Existing employees: We focus a lot on performance and historically, most compensation increases were merit-based.
With that all being said, we are currently working on a project internally to better formalizing all of that and also clearly spelling out that it's not all merit-based. E.g., we don't want to punish somebody who is performing well in a current role, doesn't want to get promoted, doesn't want to take on more responsibility but is extremely valuable for us and has acquired a lot of Codeship-specific knowledge. That's one example where we would want to have a system in place that rewards that person too.
TL;DR: Starting compensation (base/bonus/equity) gets determined by the market value (different per location), and afterward it's merit-based with some exceptions.
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There are a couple of factors, and I will structure it into two buckets, new employees & existing employees.
New employees: Usually, the job description defines clearly what title a person would get, what seniority we are looking for and that then is used as an input factor for some market research to determine what the market value for such a position is. That's a bit hard when you are hiring in multiple different countries/regions. Then there's what a new employee expects from us. That's important as well (we on purpose don't ask what people are making right now; it's solely about what they expect to make once they work for us).
Existing employees: We focus a lot on performance and historically, most compensation increases were merit-based.
With that all being said, we are currently working on a project internally to better formalizing all of that and also clearly spelling out that it's not all merit-based. E.g., we don't want to punish somebody who is performing well in a current role, doesn't want to get promoted, doesn't want to take on more responsibility but is extremely valuable for us and has acquired a lot of Codeship-specific knowledge. That's one example where we would want to have a system in place that rewards that person too.
TL;DR: Starting compensation (base/bonus/equity) gets determined by the market value (different per location), and afterward it's merit-based with some exceptions.