Pay systems: aligning salary and culture

The pay system is a highly complex subject for HR. Often confidential and a source of tension, it can quickly become a "taboo" topic.

From one organisation to the next, how salaries are set varies according to several factors:
☞ The size and sector of the company,
☞ The level of skills and experience of the employees,
☞ The role in question,
☞ The employee's "level" of negotiation,
☞ The pay policy applied within the company.

To prevent the subject of salaries from causing frustration within their teams, some companies put in place a fair and transparent pay policy.
In its own way, Morning's HR team continually questions its pay system and does not hesitate to involve employees in order to validate a shared direction. Marie Barbier and Mélanie Nabucet (HR) walk us through how it works. On the agenda: transparent discussions, assessment criteria and the no-negotiation of salaries. (Read also: "Company culture at Morning.")

"How is the subject of pay approached during job interviews?"

"Salary isn't a taboo at Morning. Members talk about it naturally among themselves. On the HR side, during recruitment, we obviously address the subject; the conversation has to happen in a healthy and natural way with the future recruit, so as not to breed frustration. Just one rule: nothing left unsaid! The dialogue must be open.

If a candidate makes a request beyond our pay scales, we won't offer them the role, on principle. They would almost certainly be frustrated by the salary set were they to join the company, which would demotivate them in the long run.

Conversely, we will make a suitable offer to a candidate whose salary expectations are below the market and below the average of their future team. If the hire were made at the price requested by the candidate, they would sooner or later realise the pay gap and would be just as demotivated. Were they to leave, we'd have to start the recruitment process all over again for the same role! We'd be just as much on the losing side as the new recruit."

"What are the prospects for salary progression for a Morning employee?"

"Every employee is granted an automatic annual pay rise, in January of their first year with the company. This annual rise is designed to reward all employees.

After that, pay is subject to an exceptional review after 2 years, on the anniversary of the contract. This process then repeats every year, to gauge as accurately as possible the employee's progression within the group! Nothing is left to chance.
Our pay system relies on regular discussions and the trust the teams place in us. It's worth noting that various bonuses and incentives are paid to employees each year (collective bonus, profit-share bonus, referral bonus)!" (Read also: "Internal mobility and cross-functional roles at Morning")

"The no-negotiation of salaries: why and how?"

"We are not all equal when it comes to the art of negotiation, and the best negotiators are not always the best performers. The key is not to forget those who don't negotiate, in the interest of fairness. The no-negotiation of salaries is a pillar of our culture; we put it in place right from the start. We expressly ask employees to trust their coordinator and HR to set their salaries.

So, of course, discontent does exist; the whole challenge is to welcome it so as not to breed frustration, without letting it influence our pay system. Like those who don't negotiate, some will never voice their discontent; so we have to fall back on that same concern for fairness."(Read also: "Employee benefits: built together, they're better!")

"What are the criteria of the salary scale applied at Morning?"

"The scale is there to guide the coordinator through the pay-review process. In many organisations, the salary scale places a great deal of importance on results. If the employee meets (or even exceeds) their targets, they get a rise accordingly. At Morning, we make a point of ensuring that the assessment criteria are aligned with our values. We value the employee's mindset more than their results. 

Of course, it's important that everyone creates value in their own way to ensure the company's viability, but other variables are taken into account, such as the ability to take on the role of project lead, or the ability to pass on one's know-how to the rest of the team. As with every HR decision made, people are put at the centre rather than the hard numbers." 

"How do you ensure this pay system endures?" 

"The watchwords are trust and communication! Above all, you have to listen to the teams and open up the conversation. We systematically involve employees in defining the company's best practices; and if these best practices last over time, it's because we constantly question the pay system so that it adapts as best it can to employees.
Each of us has to show humility and be willing to constantly question ourselves so that the collective can move forward together, without a hitch. A flexible, evolving pay system has a far better chance of lasting than a rigid, box-ticking one that leaves people and communication by the wayside!

You have to keep in mind that the aim isn't to reach 100% satisfaction within the team; you can't please everyone. Today, overall satisfaction is around 75%, and we're aiming for 90% in the long run!"

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Now you know all about the pay system at Morning!
If you have any questions or ideas to add to the topic, feel free to leave us a comment in the field below.

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