Introducing skills based remuneration at Idalko

We are currently recruiting people and the standard approach is to recruit ‘Junior development engineer’, ‘Senior software engineer’…

The drawback of this approach is that it is easy to mismatch people.  Some people consider themselves a senior, while our standards would rank them at mid-level.  In many cases, levels are associated with salary, and the higher the level – the better the salary.  The resulting discussion is not very positive.  If you get to an agreement, either party might leave the discussion with a sour feeling, affecting the relationship until you depart.

The discussion resulted in a point that we have to approach the problem differently.  The fact is that as an organization, you want to pay for the skills that you need.  You might have a position for a marketer, which can’t be filled by someone with a financial background.   While both are seniors, you don’t need an Excel master to define your communication plan – do you?

So we decided to drop the idea of levels and start to establish a list of skills around 4 axes:  Technology, Team, Project, and Communication.

This approach has a number of advantages:

  • Candidates are now weighted based on these 4 axes.
    Some of our candidates are better at technology, while others are better at communication.  Still, both can be valued equally
  • The staff understands how they can evolve and grow in the organization.
  • Identifying gaps in the team is easier as the graph will show what skill is lacking

Interesting blog on this topic :


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