In hierarchical organizations, directors, managers, and boards determine salaries. Salary scales are linked to positions, and someone who holds a position receives the corresponding salary. There are often simple guidelines on how the salary grows with the filling of the position. This provides clarity.
In a fully self-managing organization, this story does not apply. We have our own remuneration system to create clarity for everyone.
So here is the answer to the frequently asked question: "Say, how do you arrange the rewarding if there is no manager?"
Equivalent but not equal
Everyone is equivalent, but individually we are not the same. In an organization, there are always differences between the type and complexity of work, problem-solving ability and seniority level. The Value system takes this into consideration. It defines eight different profiles and four different seniority levels.
A combination of profile and seniority level carries a salary. If we do it right, we increase the salary yearly until you reach the end of your scale. This increase is not linked to an end-of-year review.
The Value System
The Voys Value System is our distributed system to determine compensation. Within the Voys Value System, we use the Baarda Model, which contains
Each colleague is plotted in this model by a combination of pathway and level. For example, an ‘Allrounder Core’, or ‘Specialist Medior’. With each position comes a pay grade, which is set from the Dr. Salary House role. Each pay grade is further divided into steps that show the progression in your salary.
What does this mean for me? And for the organization?
The pathways and levels can be represented in a matrix. Every colleague has a place (and one place only!) in that matrix, a combination of pathway and level. Of course, we assume you’ll keep growing within your pathway (from junior to core, and perhaps on to senior), but changes between pathways are the exception.
Because you usually fill several roles at once, it is not immediately clear based on those roles in which profile this combination should fall. That is why we look at how you do the work, how complex the work is, and the degree of independence. Your immediate colleagues will be present during a (re)grading. They can say something about you and your work. In addition, there are several Value Advisors to monitor the process and to arrive at a correct grading.
Do you feel that your scale is no longer appropriate for the work you are doing, for example, if it has become more complex or because your seniority level has risen? Then you can always request a reclassification. This is the Request for Change Policy.
The model is also used in the whole hiring process so that we’ll have a good idea of what someone’s position in the matrix ought to be. However, we think we can only be really sure when we know someone well, so we’ll do a definitive assessment when the new colleague has been working for the organization for six months (usually around the same time as the contract extension). Make sure you familiarize yourself with both the pathway and level descriptions, so you know on which points to assess your colleagues.