Bloke keeps rejecting pay rise at firm where colleagues pick each other’s salaries

Ever fancied working for a company where colleagues get to decide how much you earn?

Tech firm 10Pines allows staff to set each other’s salaries as part of a radical move to be more transparent and democratic.

The business, which is based in Argentina’s capital Buenos Aires, gets staff together three times a year to discuss potential pay rises.

Each employee – except new starters on probation – gets the chance to put their case forward for a salary increase before it is debated.

Founded in 2010 and employing 85 staff, the software company wants to transform the traditional hierarchy model. It has no CEO or team leaders, but partners remains as senior figures – referred to as “associates and masters”.

“Since there are no bosses to decide raises, we delegate power to the people,” co-founder Jorge Silva told the BBC.

“We don’t want a salary gap like in the United States.”

New employees can join monthly meetings where key company decisions are openly discussed following a three-month trial.

These can include expenses, budgets, new business and salaries.

Half the firm’s annual profit is also shared with staff.

Developer Ariel Umansky admitted he rejected a 7% pay rise in December last year because he didn’t think it was justified. It was the second time in five years he had refused an increase at the company.

“I felt kind of insecure and exposed about me being close to or even on top of people that I considered had a better performance than me,” he told the BBC. “It’s easy to feel like a fraud.”

He added: “A key aspect [of open salaries] isn’t knowing how much everyone is earning, but knowing who earns more than who – it’s the hierarchy, right?”

As part of 10Pines’ “sociocratic” method, new starters are able to haggle for an improved deal, while the initial package proposal is discussed with existing employees with similar backgrounds.

Interviewees who make it to the last stage get to chat with the whole team to learn about their interest and understand 10Pines’ drastic approach.

“I’ve been on the other side of it and it’s uncomfortable, but informal,” Silva said. “But we have stopped hiring processes at this stage,” he adds. “Even if they are geniuses, we can feel if they will create tension by not fitting into the team.”

Ben Whitter, author of Human Experience at Work and head of employee coaching and consultancy at HEX Organization UK, said there were growing “pockets of progressive, transparent companies” around the globe.

“In many companies salaries can be set in the shadows, and there is a fear that they are decided by ‘who you know’,” he said. “This way makes it clear and accountable.”