How We Think About Pay & Rewards at Glassdoor

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Imagine a world where everyone can find a job and company they love, where everyone is treated and paid fairly, and a world where companies are held accountable to strive to become better employers. We believe with radical transparency, we can take steps towards making this world a reality.

One of the best examples of the power of transparency is with regard to salary. Today, very few of us share what we get paid. It’s taboo. But imagine a world where everyone shared their salary. While it sounds uncomfortable at first, you can quickly see that it would be better for everyone. It would empower every job seeker and employer to ensure that employees are paid fairly. Pay equity is something we are incredibly passionate about at Glassdoor.

To make this change in the world, we need to start at home. We are taking our first step by publicly sharing Glassdoor’s Total Rewards Philosophy. This is an important resource for anyone considering working at Glassdoor. Our next step will be to publicly share the pay bands for roles across Glassdoor in November. We do all of this in the pursuit of ensuring everyone who comes to work at Glassdoor will know with certainty that they are paid equitably. Our goal is to drive change everywhere, both by (1) leveraging the powerful salary transparency provided by our platform and (2) leading by example.

To learn more about Glassdoor’s Rewards Philosophy, see below.

At Glassdoor, our number one company value is transparency. We believe transparency empowers people with the right information to make the right decisions. Whether you are a job candidate considering working at Glassdoor, or an employee trying to learn more about your compensation package and how it can grow with your career, this document will provide answers to your questions about the compensation and rewards (Total Rewards) programs at Glassdoor. 

An Overview

Glassdoor is committed to providing a competitive and transparent compensation and rewards program to hire, retain and motivate amazing people who love working here. We apply four guiding principles for how we develop our Total Rewards. These goals (in order of priority) are:

  1. Equitable, ethical, and transparent approach
  2. Competitive and responsive to the market
  3. Globally consistent and locally sensitive
  4. Scaleable and operationally efficient

We maintain a performance-based total rewards approach that offers many types of total rewards  including base pay, variable pay, 401k or pension match, a long-term incentive plan for eligible employees and an array of benefits and perks. 

In support of pay equity, Glassdoor conducts regular compensation audits to remove any potential bias from our pay practices. If and when we find a pay gap by gender, ethnicity, age, sexual orientation or other potential divide, we will correct it. 

Types of Total Rewards  We Offer

Our total annual cash compensation, which includes base and variable pay, takes into account industry, location and various other factors to  target a competitive range for non-tech jobs and an even more competitive range for harder-to-fill, technical roles. In other words, for non-tech roles, Glassdoor pays higher than most other similar companies, and for tech roles Glassdoor pays higher than a significant majority of other similar tech companies.  Each employee is placed in a role that is consistent with their responsibilities, skills, and experience in accordance with our leveling guides. 

1. Base Pay

We regularly evaluate our pay based on the market. We use leading and widely recognized third-party compensation data providers, combined with Glassdoor salary data and insights we learn from our recruiting experience. In addition to staying informed on the latest market trends, we pay for performance and use a merit-based approach to increase base pay as employees get more experience and increase their value to the company. 

We review and generally update salary ranges on an annual basis. We proactively recommend base pay market adjustments when the salary range midpoint for a specific role changes by 10% or more, based on our research, benchmarking and budget.  

How we determine base pay:

  • We research: We use 3rd party compensation data providers and reference Glassdoor salary data to determine competitive base pay by role. 
  • We compare: We compare our salaries to salaries at other technology companies in each of the locations where we have employees. We also calibrate against pay for similar roles within Glassdoor, in addition to  taking into account current market pay trends we learn from our recruiting process. 
  • We develop pay ranges: For non-technical roles, we target paying competitively based on  various factors, including industry, location, benchmarking salary data and more. We target even more competitively for hard-to-fill technical roles. Once we identify the midpoint, we establish a minimum and maximum for each role to create a full pay range for each specific role.
    • Minimum = midpoint – 20%
    • Maximum = midpoint + 20%

An employee’s salary relative to the midpoint of their pay range is known as their compa-ratio (aka comparison ratio). Thus, everyone’s compa ratio should be between 0.8 and 1.2. 

  • We customize: We then evaluate performance, potential, and experience to determine where employees should fall in that range. In general, when someone is new to a role, pay is at the lower end of the range. Gaining more experience and/or performing well, their pay will progress up the range. Even though not everyone is promoted every year, merit increases are the company’s way of acknowledging growth and impact within a current level. 
  • Throughout it all, we strive to operate ethically and equitably. We make pay and bonus decisions without regard to race/ethnicity, religion, national origin, disability, veteran status, sexual orientation, gender or gender identity, age, marital status or any other possible factor…

Source: Glassdoor Blog

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