Scoring big tech on pay range disclosure
Most folks are just getting started
Earlier this month I shared a framework for better pay range disclosure, and I wanted to explore how this is playing out so far in big tech.
After analyzing job postings and career sites from 30 big tech companies, this is what I found:
These findings generally match my expectations about how things will evolve through 2023:
Level 0 (missing or partial) — there are still a few lingering out there; don’t be too hard on them, I’m sure it will get cleaned up soon
Level 1 (bare minimum) is the vast majority of pay range disclosure right now
Level 2 (clear with context) is table-stakes for any company hiring in competitive markets
Higher levels — Level 3 (total rewards) and Level 4 (values-driven & strategic) are rare, but the inevitable path forward as companies use disclosure to compete through differentiation
Why everyone is stuck at Level 1
You might look at Activision Blizzard’s job posting and think this is clear with plenty of context — that it should be Level 2.
The problem is that where the posting references other pay, it only says that this role may be eligible (bold italics mine):
In the U.S., the standard base pay range for this role is $97,200.00 - $179,900.00 Annual. This base pay range is for the U.S. and is not applicable to locations outside of the U.S. Actual amounts will vary depending on experience, performance and location. In addition to a competitive base pay, employees in this role may be eligible for incentive compensation. Incentive compensation is not guaranteed.
This is legal boilerplate is technically more than the legal minimum, but, from a candidate perspective, it doesn’t change what you have to ask the recruiter. You don’t know if this role is eligible for incentives, nor what those incentives are.
Most of the companies at Level 1 are stuck there because the total rewards context isn’t clear.
From my conversations with comp teams, the reason this is happening is that the salary range is updated for the role, but everything else is pasted boilerplate.
Companies at Level 2 are clear whether the specific role is eligible for other incentives, and disclose what those incentives are.
The best example: Okta
Okta’s job postings get to Level 3 in a smart way:
The job posting itself explains how OTE works for this role, as well as equity and benefits programs.
The clever approach here is to link to the Okta Rewards page. Here you can find a trove of helpful information on how comp programs work, most notably by navigating to the Pay + Incentives page where you can see details of the corporate bonus program, RSU structure, etc.
Including detailed total rewards context on a separate rewards page makes it easy to scale sharing the details.
Okta is well-positioned to layer in the strategy and values it can use to market its differentiated comp program (upgrade to Level 4).
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