Imagine being able to choose your own salary!
Seems crazy, right?
Well, it is actually becoming more and more popular.
And it is even proving to be pretty successful.
The idea behind it is for companies to appear more attractive to future employees.
Your first reaction is surely, “but everyone will set themselves sky high salaries!”. However, when looking at examples, the idea is quite successful.
Self-set salaries are something which has certainly worked for Charles Towers-Clark. At his company, Pod Group, all 45 employees can choose their own salaries.
Surprisingly, the company has only had a 10% increase in salary costs!
The process of picking their own salary isn’t quick, however. Employees must:
- Look over the company data and budgets
- Research equivalent salaries in other companies
- Discuss with colleagues
- Submit their choice to 6/7 staff for feedback
- Re-evaluate their choice based on the feedback
- Prove themselves worthy with their performance
An employee of a company enforcing this arrangement told the BBC that she initially felt doubtful asking for the pay rise, but that colleagues reassured her that her skill set and effort levels were worth it.
This suggests that self-set salaries can serve the purpose of boosting the confidence and morale of employees. This surely leads to heightened enthusiasm in the workplace.
Although, undoubtedly, a risky venture, self-determined salaries may instil a sense of responsibility in employees.
Individuals may feel extra motivated to live up to their salaries and prove themselves. Setting one’s own salary may lead to the banishment of the taboo surrounding salaries and feeling underappreciated. This could allow colleagues to feel more open and relaxed with one another.
What do you think? Would you allow your employees to pick their own salaries? And what salary would you pick for yourself?