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Pay Transparency doesn't cause mutiny. Confusion does.
With the EU Directive deadlines looming and new laws popping up across US states, every leadership team is feeling the pressure. Founders and Heads of People are concerned. They imagine a line of angry employees outside their door demanding raises because they saw a job posting with a higher range or—soon—a mandated internal report. But in my experience, employees don't quit because of the number. They quit because of the silence. When there is silence on pay , human nature f
Scott Hoffhines
Feb 162 min read
Stop looking for "The Number." It doesn't exist.
"Market Rate" is a misleading term. It implies there is a specific sticker price for talent. Like a gallon of milk. Leaders often think they can just look up "VP of Engineering" and find a single answer. But in the real world, compensation data isn't a price tag. It is a scatter plot. If you pull the raw data, you will see a massive range for the exact same job title. Why? Because the "market" is a messy mix of bootstrapped startups (paying in equity) and Big Tech giants (pay
Scott Hoffhines
Jan 142 min read
The "Title Inflation" Tax
I see a specific inefficiency in almost every Series B payroll. A founder looks at their budget and sees a $180k - $220k line item for a "VP of Operations" or "Head of Product." On paper, the compensation matches the market data for an executive. But in reality, the founder is still doing the job. They are still designing the strategy, making the final call on vendors, and carrying the mental load. This happens because we confuse Reward (Performance) with Role (Scope). Whe
Scott Hoffhines
Jan 102 min read
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